- Prison Planet.com - http://www.prisonplanet.com -

Postal Service Is Nearing Default as Losses Mount

Posted By yihan On September 5, 2011 @ 2:20 am In U.S. News | Comments Disabled

STEVEN GREENHOUSE
The New York Times [1]
Monday, September 5, 2011

The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.

“Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, said in an interview. “If Congress doesn’t act, we will default.”

In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agency’s deficit, which will reach $9.2 billion this fiscal year. They include eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers — nearly one-fifth of the agency’s work force — despite a no-layoffs clause in the unions’ contracts.

The post office’s problems stem from one hard reality: it is being squeezed on both revenue and costs.

Full story here. [1]


Article printed from Prison Planet.com: http://www.prisonplanet.com

URL to article: http://www.prisonplanet.com/postal-service-is-nearing-default-as-losses-mount.html

URLs in this post:

[1] The New York Times: http://www.nytimes.com/2011/09/05/business/in-internet-age-postal-service-struggles-to-stay-solvent-and-relevant.html?_r=2

[2] U.S. Postal Service posts $1.9 billion loss, despite efficiency efforts: http://www.prisonplanet.com/u-s-postal-service-posts-1-9-billion-loss-despite-efficiency-efforts.html

[3] The Bailout Of The US Postal Service Begins: Cost To Taxpayers – $110,000 Per Union Vote “Saved Or Gained”: http://www.prisonplanet.com/the-bailout-of-the-us-postal-service-begins-cost-to-taxpayers-110000-per-union-vote-saved-or-gained.html

[4] US Postal Service Could be ‘Stamped Out‘: http://www.prisonplanet.com/us-postal-service-could-be-%e2%80%98stamped-out%e2%80%98.html

[5] Here Comes “Going Postal” The Sequel: US Postal Service To Cut 120,000 Jobs To Avoid Bankruptcy: http://www.prisonplanet.com/here-comes-going-postal-the-sequel-us-postal-service-to-cut-120000-jobs-to-avoid-bankruptcy.html

[6] The U.S. Postal Service Is Monitoring Your Snail Mail: http://www.prisonplanet.com/the-u-s-postal-service-is-monitoring-your-snail-mail.html

Copyright © 2013 PrisonPlanet.com. All rights reserved.