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Usps


LynnS

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My yahoo home page says the USPS is BROKE. If they don't make a payment of ? by such and such a date they will be possibly closing in the winter unless the US government steps in.

Anyone else read this??? That was the first thing I opened with the latest news.

LynnS

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They have no current plans to close. USPS has been broke for quite some time. They're working on restructuring their retiree benefit payments and also possibly the number of days they will run. They are required by law to make that $5.5 billion payment, which according to CNN's version of the story is an overpayment. Congress is supposed to work on changing that. But that's a whole other kettle of fish right there.

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From our newspaper:

"Despite facing $9 billion in losses this year, the U.S. Postal Service is paying out millions to thousands of workers doing nothing. However, the numbers are down from two years ago, The Washington Post reported.

The payments are made under a labor agreement governing “standby time,” which prohibits layoffs or reassignments for employees during times when equipment is broken or there is low mail volume. Under the agreements, the workers must show up for work and spend their shift in a break room or cafeteria, the Post blog the Federal Eye reported.

Standby time amounted to 170,666 hours in the first six months of 2011, according to a Postal Service Inspector General’s Office audit. The idle time cost $4.3 million. In 2009, 1.2 million hours were billed, costing $30.9 million, the Post reported. "

Also, weren't they trying to get Saturday deliveries stopped a while ago? Wonder what happened with that.

They already work with UPS (or is it FedX) to help deliver packages...seems to me that if they were to go under one of them would take on some of the other services.

Edited by NaturallyTru
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Part of the "broke" issue is not real dollars but pro-forma dollars. When USPS hires someone, they need to set aside and budget the medical and retirement. So that is what makes them broke on paper. It is probably a good idea to project out a future, but based on current dollars and current budget is probably not such a good idea.

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From what I have hear USPS will default this Fall unless Congress steps in...I have nothing about people getting paid good wages and having medical and retirement but the quality of the service in my area goes from total incompetence to I couldn't care less so I think that USPS would greatly benefit from privatization.

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