By Larry Riggs

The U.S. Postal Service now thinks it can unilaterally stop delivering letter mail on Saturday without first getting the OK from Congress.

According to Bloomberg News, the USPS is reinterpreting the law and believes it can just go ahead and cut out a delivery day on its own

The postal service said Wednesday it could save up to $2 billion a year by making this cutback beginning this August. This would also result in the loss of more than 20,000 jobs in both the USPS itself and related industries.

Yes, I’m sure there are some lawmakers who wouldn’t mind the further loss of public sector union jobs.

To its credit, the postal service isn’t even thinking about    reducing its services in the far more lucrative area of package delivery.

More than likely, the USPS felt its back was up against a wall and made this move to force Congress to pay attention to its dire financial state. The postal service lost $15.9 billion for the year ended Sept. 30 and has no visible means for making up this shortfall.

Meanwhile, the postal service keeps calling on Congress to pass postal reform legislation.

Indeed, last April, the Senate passed its version of postal reform but that bill died since the House did not act, probably because its sponsor Rep. Darrell Issa (R-CA) lacked the votes to have it pass the full chamber.

This postal service’s estimated $2 billion in cost savings—a figure that is in some dispute—wouldn’t go very far considering it lost nearly eight times that amount last year.

That’s largely because the USPS is still saddled with an annual obligation to pay more than $5.8 billion each year to cover healthcare costs of  future retirees—something no other  federal  agency has to deal with.

This obligation somehow got slipped into the last postal reform law in 2007 which did so some good by guaranteeing small predictable annual postage rate hikes.

But this crushing financial burden has more than contributed its share to destroying the only government agency the public still trusts—even if more individuals and businesses are now communicating and buying electronically.

Link | This entry was posted in postal finances, U.S. Postal Service and tagged , , , , . Bookmark the permalink.

One Response to USPS Moves to Cut Saturday Delivery

  1. Lynn N says:

    This is pretty sad stuff- hopefully someone will sit up and take notice. Such a drastic action, harming so many people, and it doesn’t even achieve the desired result- solvency. And already people are sounding the death knell for mail altogether. For example, from,
    “Wednesday delivery will probably also be gone in a few years. The progression from there to the complete elimination of the US postal system will only be a few more years. In other words, by the end of this decade, email will likely have totally destroyed snail mail” Let’s hope these dire prognostications don’t come to pass.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s