Monday, August 13, 2012

Post Office Reports 5.2 Billion Dollar Loss

On Thursday the U.S. Postal Service reported a $5.2 billion loss for the quarter ended June 30, showing a further deterioration of the agency's financial woes. With first-class mail volumes continuing  to decline the loss for the fiscal third quarter was 68% larger than the $3.1 billion loss reported for the same period a year earlier.  This means that the USPS is unable to keep up with obligations to its retirees. The agency projects that it will nearly run out of cash before the fiscal year ends next month.

With little funds on hand, the Postal Service said it plans to default on a $5.6 billion retiree health-care payment due Sept. 30. The USPS already defaulted on a $5.5 billion payment due earlier this month. The Postal Service is now being forced to prioritize payments to employees and suppliers so it can continue delivering the mail. While remaining bad, the cash situation should improve in the final months of 2012, when holiday deliveries typically cause revenue to increase.

Again Postmaster General Patrick Donahoe is calling on Congress to institute reforms to shore up the agency's operations. The Senate passed a reform bill earlier this year, but the House has yet to move on the proposal. Instead Washington has chosen to kick the can down the road to delay the end of Saturday delivery, layoffs, and closing of many Post Office locations.This is another example of what is wrong with America. Maybe the answer is for the American public to form a protest against Saturday delivery and seal their mailboxes over the weekend.

 On Wednesday April 25th I posted another article criticizing the waste of Saturday delivery and the stupidity of  delaying the necessary reforms,  Postal Service Reform Delayed

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