Postal Service Seeks Exit From Union Deal
source: http://bloomberg.net
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The collective bargaining agreements that prevent mass firings are keeping the service from reducing its workforce “as quickly as is now clearly needed,” the agency wrote in a draft document. The Postal Service has about 560,000 full-time, non- contract workers. Retirement and voluntary departures would only account for 100,000 jobs, the service estimated.
The Washington-based service last week said it may be forced to ask Congress to raise its $15 billion debt limit unless lawmakers allow it to delay a required payment for future retirees’ health benefits and make changes like stopping Saturday deliveries or closing more post offices.
“Desperate times may require desperate measures,” said Art Sackler, director of the Washington-based Coalition for a 21st Century Postal Service. “We are heartened to see the Postal Service is determined to confront its financial crisis aggressively.”
The group represents corporate mail customers including Bank of America Corp. and Verizon Communications Inc.
The Postal Service needs “these additional legislative changes to return to sound financial footing,” David Partenheimer, a spokesman, said in an e-mail.
No Taxpayer Funding
Employees of the Postal Service, set up to operate like a business, without taxpayer funding, are included in federal employee health and pension programs. Labor accounts for about 80 percent of the Postal Service’s costs.
“The Postal Service cannot address its current economic challenges without gaining control of its legacy costs, defining their breadth and scope, and setting up a reasonable program to fund them,” the service said in a draft document dated Aug. 2. “The Fortune 500 companies provide ample precedent.”
The Postal Service’s two largest unions, the American Postal Workers Union and National Association of Letter Carriers, criticized the proposals.
“Crushing postal workers and slashing service will not solve the Postal Service’s financial crisis,” APWU President Cliff Guffey said in an e-mailed statement.
To contact the reporter on this story: Angela Greiling Keane in Washington at agreilingkea@bloomberg.net
http://www.bloomberg.com/news/2011-08-12/postal-service-seeks-exit-from-union-de...
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- Union busting
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Blueshound9
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The unions are doing what unions do best. Bleed the company dry then complain when there is no money left. No one needs to do any "union busting" they are doing it all on their own!
- 1 year ago
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Blueshound9
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Schnookums
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Blueshound9:
Indeed. Unions' power has now been circumnavigated via regulatory changes. Until they change that, they will continue to find that they are not on a level playing field and in fact are competing with the labor force of the entire world putting them and their ideals at a distinct disadvantage.
- 1 year ago
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Schnookums
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insaintity
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Relevant and yet somehow, off topic...
- 1 year ago
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insaintity
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COMMONSENSEFORCOMMONGOOD_COM
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Merely a preliminary attempt to privatize the Post Office under cover of crisis budgets, super committees, and military budgets. My regrets my civil friends and colleagues, but too much civility and passivity has put us in this position, and high time to move past it. No amount of civility is going to reverse the trend of incorporating you and I by Big Corporate!
- 1 year ago
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COMMONSENSEFORCOMMONGOOD_COM
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cmc101
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Bank of America delayed my Insurance check processing because I used next day air us postal service instead FedX next day and that was stated by the accounts manager at bank of America Why it had taken two week to process
whey were willing to give me the received date processed date and post office pickup time and that time was different that was stamp on the package - 1 year ago
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cmc101
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cmc101
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they want to sell the postal service to FEDX
farm out buffet's railroads to contract labor advantage groups like Walmart/ China - 1 year ago
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cmc101
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COMMONSENSEFORCOMMONGOOD_COM
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cmc101:
Bingo! And we need to join the San Francisco protesters and say HELL NO!
- 1 year ago
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COMMONSENSEFORCOMMONGOOD_COM
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cmc101
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COMMONSENSEFORCOMMONGOOD_COM:
I done all I could to support Wisconsin
I can make a lot of squeaky wheels and emails
whisper with the microphone turn up at full volume - 1 year ago
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cmc101
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transfire
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READ THIS!
I want to make it very clear to people so they understand exactly whats going on with the postal service.
If you read the USPS annual report (2009?) the first page makes a HUGE deal about the fact the our postage rate is lower than all other countries in the world. The next lowest was Canada at 2 cents more. If that's the priority then we must not be surprised if the postal service falls into the red. I calculated that if the rate was raised 2 cents, they USPS would be back in the black. Now, the USPS did try to raise rates --obviously understanding the very same fact. But CONGRESS did not let them.
Secondly, CONGRESS has forced the USPS to set aside more money for pension plans than _all_ other agencies --far exceeding the highest industry standards for such reserves. If CONGRESS would simply relax these requirements just a small amount, the USPS would be in the black again.
The USPS brings in over $70 billion in revenue a year. At that rate, a loss of $9 during a deep recession is nominal.
So, the fact is clear: CONGRESS is _purposefully_ seeking the destruction of the USPS.
Why?... Because private shipping industry is bribing them to do so. If they succeed they will contract out the postal service and you can expect all postage costs to rise markedly --double, triple, perhaps more. And many rural areas will loose mail service almost altogether.
(Don't believe? Look into the UPS scandal sometime for which FedEx was very very pissed.)
- 1 year ago
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transfire
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EdJoyProductions
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transfire:
Thank you for the info, Transfire. This is a very sad state of affairs.
- 1 year ago
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EdJoyProductions
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Schnookums
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transfire:
A very good point. Thank you for sharing that.....
- 1 year ago
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Schnookums
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percipi224
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transfire:
thank you, follow the money again. Why was the postal service ever turned private ever? Cried out when it happened. The ads they are playing now, make it look like they support their union. What is happening to USPS is happening in Medicare and Medicade and they want to do the same to social security. its what happened to Freddie and Fannie, the military, utilities. PRIVATE "free to screw us market" is killing the country, we are being sucked dry.
- 1 year ago
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percipi224
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faye59
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The postal service makes the bulk of their money from services they provide, not from the tax payers. They are generally more solvent than the other agencies. If they need more funds, they raise the price of postage and other services. I support them 100 percent.
- 1 year ago
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faye59
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faye59
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Next the House will be trying to figure out a way to turn the postal service into a private business for one of their big money friends. You can bet it's all about money.They have probably already used their retirement funds.
- 1 year ago
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faye59
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libertyforall
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Only liberals would think an agency that loses 9 billion in a single year should keep its funding. Clearly, something needs to change at the agency.
- 1 year ago
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libertyforall
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Schnookums
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libertyforall:
How about a cost-of-services adjustment commiserate with the real rate of inflation?
- 1 year ago
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Schnookums
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fernweher
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I always thought if I got a government job the main benefit was security and good working conditions. No longer, it seems the gov employees at lower levels are starting to get screwed just like the rest of us.
- 1 year ago
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fernweher
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tverdell
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I think we should get rid of the entire postal agency.
Am I overlooking something? - 1 year ago
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tverdell
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Schnookums
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tverdell:
Yes, you are.
- 1 year ago
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Schnookums
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GRC54
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I remember a company called Polaroid. I don't blame unions for any companies demise. I blame management for not changing with the times. There are places in the states that have erratic mail delivery as I live in one such area. Although the postal service is better and cheaper than the so called shipping giants start charging the big corporations more money for their mass junk mailings to start with. Charge just enough for package shipping and fire most of the managers who are dead weights to the system.
Trying to get out of the union contract isn't a solution.
Thank you Ronnie Raygun and to all the unions who crossed the Air Traffic Controllers picket lines for your own demise.Support the Verizon strikers any way you can.
- 1 year ago
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GRC54
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Progresshiv [removed]
- This comment was removed by its owner.
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Progresshiv [removed]
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EdJoyProductions
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Progresshiv:
I second that motion!
- 1 year ago
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EdJoyProductions
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warman1138
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I like the postal service too bad the union busting, butt pounding, corporate backed, money in the back pocket politicians don't.
- 1 year ago
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warman1138
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Schnookums
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What a fabulous legacy....the Republicans taking over the House in 2011 will be remembered by history as when the final destruction of unions in the United States started. The current crop of House Republicans are not directly to blame for Postal Service Union jobs (yet), but the trend is clear.
- 1 year ago
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Schnookums
