Congress the obstacle to fixing the U.S. Postal Service | Arkansas Blog

Congress the obstacle to fixing the U.S. Postal Service

by

22 comments

SURVIVAL STRATEGY: A path to profitability exists for Postal Service, Nocera contends.
  • SURVIVAL STRATEGY: A path to profitability exists for Postal Service, Nocera contends.
Joe Nocera writes the clearest analysis I've seen of problems facing the Postal Service and the solutions.

The problem isn't unions, by the way, it's Congress. Yes, losses are currently large, he writes in the New York Times. But:

On the other hand, its pension is overfunded to the tune of around $11 billion. It is also required by law to make an annual payment of nearly $5.5 billion to prepay for health benefits for future retirees, a mandate imposed on no other company — or government agency — in America. Simply ending that onerous prefunding requirement and reclaiming the excess pension money would go a long way toward shrinking the losses.

It could also close money-losing rural post offices and outsource the work to the local general store. It could shrink its work force. It could end Saturday delivery. It could raise prices, which are among the lowest in the world. It could take steps, in other words, to get its costs under control, just like any other business grappling with red ink.

The union people are on board with workforce reductions. But Congress can't stop meddling, Nocera writes. Close a postoffice? Congress goes nuts.

From the ArkTimes store

Comments (22)

Showing 1-22 of 22

Add a comment
 

Add a comment

Clicky