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.
House 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.
The 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.
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