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Postal Service Loses $3.8 Billion for Fiscal 2009

No one wants to hear this

Software Engineer
US Army
Tue Nov 17, 2009 10:32 AM

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The last time I made these comments, I was nearly attacked by postal employees. Mail volume is decreasing every year, and will continue to decline at an ever increasing rate. Mobile phones, email, and social networking are all affecting this. Newspapers and magazines are disappearing. The slower economy has certainly reduced the amount of "junk mail" that I received this year, and my recycle bin benefits from this. USPS must adapt to changing market conditions and user behavior to survive. Even with the proper changes, it has about 10 years left. The USPS of the future will be delivering packages and about 5% of the mail volume that it delivers today, if it survives at all.

Re: No one wants to hear this

peon
USPS
Tue Nov 17, 2009 11:04 AM
What will happen after the 10 years you predict as USPS' future? Who will deliver the credit cards, ballots (more jurisdictions are moving to voting by mail), newspapers (more newspapers are moving to delivery by mail), census forms, direct mail advertising (which has a greater return on investment that any other type), etc.? Not FedEx or UPS. They simply cannot compete. USPS delivers more in 2 days than they -- combined -- deliver in a year. They simply do not have the delivery capacity and -- increasingly -- use USPS for their "first and last mile." In addition, they charge $20+ for service available from USPS for 44 cents. The Postal Service will survive, because we deliver unparalleled service, at an unbeatable price, continuing to earn the highest trust of our customers, and because we are willing -- and able -- to adapt to the circumstances in which we find ourselves.

Re: No one wants to hear this

Manager
HUD
Tue Nov 17, 2009 11:59 AM
Actually, the USPS will survive because it is backed by the government and taxpayer funds which means it has a bottomless pit of money to cushion these ongoing losses.

Re: No one wants to hear this

Retiree
DoD
Tue Nov 17, 2009 5:34 PM
Then how come it's 3.8 billion in the hole?

Re: No one wants to hear this

worker
fed
Wed Nov 18, 2009 10:17 AM
Is it possible that the profitable first class mail volume is going down and non profitable other classes of mail are going up. If this is the case, then the post office cannot survive without subsidies or a raise in price to deliver non first class mail.
My question is what other classes of mail, other than first class, are profitable?
My second question is if this is the alleged trend, then how will the post office respond?

Re: No one wants to hear this

SCS
USPS
Wed Nov 18, 2009 6:36 PM
Congrats and thank you "peon". You obviously get the big picture. HUD Manager and atom smasher, you are just like the rest of the blow hards that do not have the knowledge required to make informative posts. The USPS receives zero -0- tax dollars for operational expenses. Go ahead and keep deluding yourself that somehow your taxes pay for the USPS just keep it to yourself. Yes we have to make changes, but don't think for a moment that our losses are not directly tied to the economy. And if it comes in the form of curtailing delivery to just 5 days then that is what it takes. No one wants to talk about the possibility of lay offs but that is a direct and necessary albeit unfortunate result. We are the ONLY self sustaining gov’t org and it is ludicrous to make statements like “Have all USPS employees pay what other Federal employees pay towards their health care.” We are not like other federal employees. In fact we are like the red-headed step children of the gov’t when it comes to benefits because we are NOT tax dollar subsidized. In all fairness though it should be mentioned that the costs most employees in the USPS pay in regards to health care are determined by their collective bargaining agreements which are legal and binding contracts. Is .44 really that outrageous to send a letter from Alaska to Hawaii or California to Maine? When was the last time you bought anything of any kind of value for .44? Quit your bitching!! It is an outstanding value for an outstanding service!

Postal Service

atom smasher
nrc
Tue Nov 17, 2009 12:15 PM

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There are two obvious ways to save the US taxpayer money: 1) Have all USPS employees pay what other Federal employees pay towards their health care and 2) since the majority of mail is junk mail eliminate two additional days of mail delivery. The USPS is inefficient, unable to stand on its own and too heavily controled by Unions.

Postal Service Loses $3.8 Billion in FY09

Budget Officer
USDI - BLM
Tue Nov 17, 2009 1:45 PM

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On top of the decreases in the amount of mail Americans are sending through the Postal Service, I believe they have made some terrible decisions related to postal service property. On one strip of road near where I live, within the last two years, they built brand new post office buildings in four very small towns. Mind you, each town is no more than 10 miles from the next town. Needless to say, I don't feel this was responsible use of the money they receive. Mostly, I wonder why they felt that level of expenditure was necessary.

63% of mail is advertisements

Master Sergeant
USAF
Tue Nov 17, 2009 4:03 PM

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If the USPS would stop offering HUGE volume discounts to the companies that stuff your mailbox with loose leaf advertisements they might perhaps stop losing so much money. 63% of mail is advertisements and the reason a postage stamp is 44 cents is because you and I have to make up the losses.

Stop Saturday Mail

Retired
IRS
Tue Nov 17, 2009 5:34 PM

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I don't know anyone that wants or needs Saturday mail delivery. I have been hoping for no Sat service for years. I have 2 sisters that deliver mail and they feel the same way.

Re: Stop Saturday Mail

WorkerBee
USPS
Wed Nov 18, 2009 10:08 AM
If you're waiting for a check, medications, package or special greeting, you 'need' Saturday mail delivery. If your two sisters are carriers, they better look out when the new contracts come up in 2010. By going to 5-day delivery (already being planned by HQ), this means lay-offs of @100,000 employees including carriers, TEs, rurals, maintenance, clerks, supv. (But not top-heavy, high-salaried mgmt in D.C.) It's a domino effect. A self-supporting govt agency, the USPS is the only delivery service that reaches every address in the nation. The Postal Service receives NO tax dollars. And not all of the benes of other federal employees (different pay schedules, different leave rules, etc.) We should charge more than .44 -- look at your bills to see if your bank is paying first class rates. When a Post Office is closed, everyone rallies to have it remain open. I worry every day if I'll still have a job to retire from. Does your federal agency still use the mail?

Re: Stop Saturday Mail

worker
fed
Wed Nov 18, 2009 10:20 AM
I want Saturday deliveries. If something does not come on Friday, I would prefer to get it on Saturday rather than Monday.
Also, we get many notices on Friday. It is better to mail them and have them picked up on Saturday rather than Monday.

REDUCE GRIEVANCES/EEO COMPLAINTS

MAINTENANCE SUPPORT CLERK
US POSTAL SERVICE
Wed Nov 18, 2009 12:47 AM

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if the usps would reduce violations of the postal contract with the apwu and eeo violations it would save millions of dollars. but the usps will not reprimand supervisors and managers that constantly make these violations. if someone would look into what the cost is they would find that the cost is in the millions constantly.

You will still be able to get Saturday delivery.

peon
USPS
Thu Nov 19, 2009 12:53 PM

Post Reply

Rent a P. O. box. Saturday delivery will continue to them, even if USPS goes to 5-day delivery.

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