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-   -   Economics Postal Service posts record $16 billion loss for 2012 (http://www.chiefsplanet.com/BB/showthread.php?t=266657)

carlos3652 11-15-2012 01:32 PM

Postal Service posts record $16 billion loss for 2012
 
Postal Service posts record $16 billion loss for 2012
By Aaron Smith @CNNMoney November 15, 2012: 12:41 PM ET



NEW YORK (CNNMoney) -- The U.S. Postal Service announced a record loss of $15.9 billion for the fiscal year 2012, which it blamed primarily on a mandate to set aside billions of dollars for a retirement heath fund.
The Postal Service said that its loss includes $11.1 billion in payments it owes to "prefund" its retiree health benefits. Postal officials have complained for years about these prepayments, which are required by Congress, arguing that its Federal Employees Retirement System is overfunded by $11 billion dollars as of October. They also point out that other federal agencies don't have similar mandates for prefunding.

The Postal Service defaulted on two prefunding payments during its 2012 fiscal year, which ended on Sept. 30.
Its total losses of $15.9 billion are more than triple the $5.1 billion in losses it posted in the prior year, the Postal Service said.

The Postal Service has been struggling with declines in mail revenue, which is a casualty of a sluggish economy as well as email.
The agency has made various efforts to reduce costs. It plans to cut 150,000 workers through 2015, reduce existing staffers' work hours and hike the price on first-class stamps.

Officials have threatened to scale back service to five days, shuttering their low-volume, low-revenue, Saturday service. But the notion of five-day service is intensely unpopular in Congress and unlikely to prevail.
Related: 6 ways to help your post office

Unlike other federal agencies, the Postal Service does not receive taxpayer support, though it has borrowed money from the U.S. Treasury.
Like its business rivals FedEx (FDX, Fortune 500) and United Parcel Service (UPS, Fortune 500), the Postal Service is an independent enterprise.

jiveturkey 11-15-2012 01:46 PM

I don't understand why Congress is against the 5 day service option???

alpha_omega 11-15-2012 01:47 PM

Quote:

Officials have threatened to scale back service to five days, shuttering their low-volume, low-revenue, Saturday service. But the notion of five-day service is intensely unpopular in Congress and unlikely to prevail.
Then congress is stupid...this would be the quickest way to save some $$$. Oh, and also get rid of some of the dead weight employees you have.

vailpass 11-15-2012 01:54 PM

1. If govt. wants the Post Office to operate in the black they need to privatize the operations portion of the P.O.

2. If the govt. is not concerned with the PO operating in the black they, and we, need to view the PO as an expense and not get up in arms when the bill comes due.

3. If the govt. wants neither of the above they need to shut the PO down or sell it off and let the free market meet the unsatisfied demand.

Amnorix 11-15-2012 02:32 PM

Post Office needs massive revamping. Germany, I believe, adopted a great system where many post offices are run through convenience stores and the like. The entire antiquated structure needs to be completely changed.

Dumbass politicians protecting broken systems for too long. Very annoying.

Graystoke 11-15-2012 02:33 PM

The Post Office is one top heavy institution. Way management heavy. There is a 1 to 7 Ratio.
For every person that delivers your mail, or packs your mail, or touches your mail -- for every 7 of them -- there’s one of them that is just a supervisor. That’s a ratio that’s so unacceptable in the private sector."

BigMeatballDave 11-15-2012 02:36 PM

Government ****s up everything it touches.

HonestChieffan 11-15-2012 02:47 PM

Every potoffice in every little town has a postmaster making the bucks, some lucky building owner has a fat lease agreement and no one has the balls to close these tiny postoffices. Lots of money made off the .gov

J Diddy 11-15-2012 08:24 PM

Quote:

Originally Posted by vailpass (Post 9121146)
1. If govt. wants the Post Office to operate in the black they need to privatize the operations portion of the P.O.

2. If the govt. is not concerned with the PO operating in the black they, and we, need to view the PO as an expense and not get up in arms when the bill comes due.

3. If the govt. wants neither of the above they need to shut the PO down or sell it off and let the free market meet the unsatisfied demand.

well put

mlyonsd 11-15-2012 08:26 PM

The PO is just an example of technology passing us by.

Mi_chief_fan 11-15-2012 08:29 PM

"Prefunding"retirement benefits is a huge part of the problem, but that seems to be overlooked by lawmakers. Not sure why. Are any other companies forced by law to pre-fund retirement accounts?

Comrade Crapski 11-16-2012 01:12 AM

Peanuts.

whoman69 11-16-2012 03:55 PM

Republicans are trying to privatize it so they are sending tons of red ink their way to pave the way.

Dayze 11-16-2012 03:58 PM

they'll make up for it by implementing an E tax / E stamp on emails.

joking of course....but I wouldn't surprise me at all.

Mi_chief_fan 11-16-2012 04:24 PM

Quote:

Originally Posted by whoman69 (Post 9123763)
Republicans are trying to privatize it so they are sending tons of red ink their way to pave the way.

Basically. I'm sure UPS has some well-paid lobbyists to keep it that way.


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