We are mothers and fathers. ** And sons and daughters. ** Who every day go about our lives with duty, honor and pride. ** And neither snow, nor rain, nor heat, nor gloom of night, nor the winds of change, nor a nation challenged, will stay us from the swift completion of our appointed rounds. ** Ever. – TV advertisement created by the USPS after 9/11
by Tina Grazier
The Post Office is one of the largest employers in the US, second only to Wal-Mart, and delivers 40% of the world’s mail.
It has also lost $20 Billion since 2007. Clearly something is wrong. A full 80% of its budget goes to employee salaries and benefits. Postal workers receive compensation at a higher rate than their counterparts with average salaries for postal employees at $41 versus $28 for other delivery service employees. Given the fiscal decline of their employer you would think the union employees would suck it up to save their jobs but last march the union negotiated for, and won, a four year, no layoff contract with seven uncapped cost of living increases and a 3.5% raise over four years.
Have any of these folks heard about the ongoing recession/depression? With actual unemployment over 20% have they no fear of losing their jobs if their employer is forced to call it quits? Apparently not…big pensions and health benefits are sufficient securities, I suppose. Besides, two generous lawmakers, Senators Tom Carper of Delaware and Susan Collins of Maine, have sponsored a bill that would give the agency $50 to $75 billion in bailout money for its underfunded liabilities by having the federal government underwrite pension obligations for retired postal workers.
Will the insanity never end?
As I worked on this article I kept thinking of the dedication of early mail carriers in America. Images of the friendly mail man that walked his beat every day but Sunday and the dedicated and brave men of the Pony Express kept filling my mind. How different these images were from pictures of protesting union workers I’ve seen in more modern times. My how attitudes have changed!
US Postal Service books have been in the red for many years now with no thanks to rising employee costs but the advent of electronic communications may have delivered the agencies final fatal blow. The electronic communication trend began with the humble fax machine around 1985 but quickly accelerated as cell phones, email, texting, messaging and Twitter became easy and popular ways to communicate. Since companies like UPS and FedEx already deliver the bulk of package mail the post office is left out in the cold and unable to easily compete even on that score.
Complete closure of this once mighty service would be devastating for current employees and add significantly to already burgeoning unemployment numbers.
Unless the government can work some magic, it may soon be the fate of many postal service employees to stand in the unemployment line. Efforts to see the agency do better have been made in the past. The Post Office has raised the price of stamps time and again. In fact the policy was repeated so often it began to spark a public outcry and scorn. This led to the “forever” stamp, a tactic used to try to calm some of that public frustration. Other efforts have been suggested as well including closing small offices, ending Saturday delivery and laying off postal workers. Despite downsizing and rescheduling efforts, Postmaster general, Patrick R. Donahoe is reporting he may be forced to close up shop this winter. The problem is a $5.5 Billion trust fund payment that’s due September 30th. If they can’t make the payment, and if the government fails to rescue them, they will be forced to shut down.
I SAY…IF YOU WANT JOB CREATION…VOTE THEM ALL OUT IN 2012.
The postal service is vital to US business and commerce. It isn’t meant to make a profit. If it needs a government subsidy, so be it. Our freeways and highways loose money, but we support them due to the vital nature of what they provide.
As for the wages you site, the only postal workers I know who make that kind of money are supervisors and postmasters. Most letter carriers are contract workers, and they sure don’t make very much.
The US post office has offices in many small communities, and is required to deliver to every us address. Something UPS and FedEx don’t do.
Go take 44 cents to FedEx and see how far that will get you.
How can any business – even the Post Office – manage its costs and labor issues if they are not allowed to lay workers off? Well, that’s what the current labor contract calls for that Congress must address.
It’s time to privatize the P.O. and let it compete in the marketplace.
Jim the problem isn’t the wages. The problem is a benefits package that cannot be sustained. The union, once again, bargained for and got a promise that cannot be kept.
Profit is also not the problem. LOSS is the problem. Breaking even would be looked upon as a success. The problem is the PO is forced to spend much more than they can possibly bring in because of the too generous pension benefit.
Subsidizing it year after year is neither practical nor smart.
As for highways, they don’t operate at a profit or loss since they are not a company or service agency. Oil and gas taxes provide plenty of money to keep our federal highway system in good condition…unfortunately those funds are “borrowed” for other things by irresponsible congress critters.
Our government has not been a good manager of the people’s money. It’s time for us to demand better. The Post Office can do better but the people who work for the Post Office are going to have to be realistic about what is possible in terms of their benefits and they are going to have to work harder too if it’s going to be saved.
The Postal Service HAS laid off 110,000 workers in the last four years, and plans to lay off 120,000 more.
Tina, your concerns about benefits are valid. Many government workers are allowed to retire with very lucrative pensions. The Postal Service is far from the worst. Many firemen and law enforcement workers are allowed to get full retirement in their early 50’s. The US military provides retirement pay after just 20 years of service. Plus they get government paid health care.
Meanwhile those of us in the private sector are stuck paying for this.
However many postal workers are now temporary employees, with NO benefits.
Jim: “However many postal workers are now temporary employees, with NO benefits.”
And isn’t that a shame? Talk about killing the possibility to offer a “livable wage?
Q: “WHAT counterparts????”
Picky picky…letter carriers are a unique service but not without competition in similar service industries…UPS, FedEx, and various other courier services.
It’s not like they are being compared to restaurant workers, construction workers, realtors, or garbage men. Take a pill Mr. picky!
Jim: “However many postal workers are now temporary employees, with NO benefits.”
Tina: “And isn’t that a shame? Talk about killing the possibility to offer a livable wage?”
Tina, I’m confused on your position. Do you want well paid workers with job security? or Low paid workers?
Are those the only two choices? How about entry level wages that allow teens to make a few bucks and gain some work experience? These should be determined between the teen and the guy hiring him. A job is worth what someone will pay and someone will accept in pay. If an employer is too stingy he won’t get many applicants and if he stays stingy he will always be looking for new workers, and training new workers, because they will soon move on.
I want workers to earn what they are worth and to be rewarded for exceptional work or contribution. I want people to make as much money as they can or desire to make and I want them to realize there are many ways to make money. I want Americans to be as smart and savy about making money as we can make them. The amount you earn and make is a personal decision. Some people are more ambitious than others. We are not cookie cutter people in America…we have always been rugged individuals who live in freedom and like it that way. That freedom requires responsibility!
I want prices of goods and services to be reasonable. I want people to take personal responsibility for their healthcare and retirement…because it will bring costs down and your dollars will buy more. I want our educational system to prepare students to be adults, which includes the basics of a good education but also the basics of economics and smart management of money.
I want Americans to be both productive and well rewarded. I think they have the power to make that happen. Most businesses understand that workers have families. Most are willing to pay a decent wage.
Government makes it harder every year.
I believe that when consumers pay directly for the services and insurance coverage they receive it keeps businesses, like insurance companies, more honest. I believe when government stays out of business and enacts only those regulation that are necessary to protect consumers (not corporate heads, union bosses, or other special interest groups) it keeps costs and pricing down and eliminates fraud, abuse and piles of costly red tape.
Thanks for asking Jim…sorry I bent your ear…er…eyes!