The Labor & Employment Blog is a forum for practitioners and Bloomberg BNA editors to share ideas, raise issues, and network with colleagues.
Wednesday, May 9, 2012
by Louis C. LaBrecque
Everyone agrees the
Postal Service is in serious financial trouble, but there's very little
agreement on how to go about saving it.
Although the Senate last month
approved a wide-ranging postal overhaul measure (S.
1789), it would make USPS wait for two years before eliminating Saturday
mail delivery - one of the key actions the Postal Service says it must take to
help cut its costs by $22 billion annually by 2015. As a result of this and
other restrictions, USPS following the vote said the measure "falls far short"
of what is needed to restore the Postal Service's prospects.
Oversight and Government Reform Chairman Darrell Issa (R-Calif.) also criticized the Senate bill. But while a House bill
introduced by Issa, the Postal Reform Act (H.R. 2309), would allow the Postal Service to move to
five-day delivery, USPS officials oppose provisions in that legislation that
would create a new Commission on Postal Reorganization with oversight authority
if the Postal Service defaults on federal payments.
The Postal Service
addressed one of the concerns expressed by many senators May 9, when top
officials announced that USPS was suspending its program of reviewing
approximately 3,700 primarily rural post offices for possible closure or
consolidation. Instead, the Postal Service says it will review approximately
13,000 rural post offices with an eye toward reducing the offices' hours of
operation and labor costs while keeping most of the post offices open.
House and Senate will have to agree on at least a short-term solution to the
Postal Service's woes if USPS, which is losing an estimated $25 million each
day, is to avoid defaulting later this year on required federal payments.
In other public sector news:
to post a comment.
Public Sector Roundup: Will Sequestration Continue Into Fiscal Year 2014?
Q&A: When Does an OFCCP Audit Become Litigation Worthy?
Congressional Roundup: Republican Comp Time Bill Gets a Vote
Labor Stats and Facts: Decertifications Are Down, but Unions Shouldn't Celebrate
EEO Roundup: Valuing Employment Discrimination Claims