Posts Tagged ‘Post office’

Post Office Defaulting Again On $5.6B, Looking To Go On Life Support, Obama Care Checks In The Mail

September 28, 2012

The U.S. Postal Service, on the brink of default on a second multibillion-dollar payment it can’t afford to pay, is sounding a new cautionary note that having squeezed out all the cost savings within its power, the mail agency’s viability now lies almost entirely with Congress.

In an interview, Postmaster General Patrick Donahoe said the mail agency will be forced to miss the $5.6 billion payment due to the Treasury on Sunday, its second default in as many months. Congress has left Washington until after the November elections, without approving a postal fix.

For more than a year, the Postal Service has been seeking legislation that would allow it to eliminate Saturday mail delivery and reduce its $5 billion annual payment for future retiree health benefits. Since the House failed to act, the post office says it’s been seeking to reassure anxious customers that service will not be disrupted, even with cash levels running perilously low.

Post office on life support looking to close on Saturdays. Obama Care checks in the mail.


Postal Service Loses $6B, Too Old School

October 1, 2010

The Postal Service expects to lose about $6 billion this year because of steep declines in mail volume.

The announcement comes a day after regulators refused to allow the post office to raise the cost of mailing a letter by 2 cents. Postmaster General John Potter says the post office is still considering whether to appeal that decision or make a new rate hike request.

The latest loss is a bit less than the $7 billion the post office had been expecting. But it’s on top of a $3.8 billion loss the year before.

Mail Volume  is down 20 percent over the past two years due to the recession and more communications moving to the Internet.

Potter plans to keep pushing in Congress to reduce mail delivery to five days a week and to shutter thousands of post offices.

Post office antiquated.. Old School