Postal Service says it lost $2.2 billion over three-month period

It is about time to sell the Post Office—and I have a buyer.  I believe the unions that have destroyed the Post Office should be forced to buy it, run it and try to save it.  The taxpayers should not be spending billions every years to cover up the corrupt union contracts and regulations that have killed a needed service.

“DeJoy urged intervention from Congress and said his department is looking for a $10 billion infusion to cover losses and regulatory changes. But even that kind of investment would not be enough to fundamentally alter USPS’s financial situation. 

“Access to an additional $10 billion in borrowing authority will delay the approaching liquidity crisis and is a positive development,” he said.

The $10 billion is not to save the Post Office, it is to stabilize the organization for liquidation.  Trn it over to the unions. Let them accept all debts.  Let us see if they can save the horse and buggy industry of the 21st Century.

Postal Service says it lost $2.2 billion over three-month period

By Tal Axelrod, The Hill,  – 08/07/20

The U.S. Postal Service (USPS) announced Friday that it lost $2.2 billion in the second quarter of the year as the coronavirus pandemic devastated the U.S. economy.

Louis DeJoy, who recently took over as postmaster general, admitted his agency’s finances are “dire,” warning that it could shed about $20 billion overall in 2019 and 2020 alone.

“Let me start by saying that I am an optimist by nature, and as I take on this new role, I am enthusiastic and energized about the prospects for our future and our untapped promise,” DeJoy said in remarks to the USPS Board of Governors Friday. “That said, I am a realist, and am keenly aware of the magnitude of the financial challenges we face.”

“Our financial position is dire, stemming from substantial declines in mail volume, a broken business model and a management strategy that has not adequately addressed these issues,” he added. “Without dramatic change, there is no end in sight, and we face an impending liquidity crisis.” 

The Postal Service said package deliveries were up by over 50 percent as Americans were homebound during the pandemic, but that improvement was more than offset by declines in first-class and business mail. 

DeJoy urged intervention from Congress and said his department is looking for a $10 billion infusion to cover losses and regulatory changes. But even that kind of investment would not be enough to fundamentally alter USPS’s financial situation. 

“Access to an additional $10 billion in borrowing authority will delay the approaching liquidity crisis and is a positive development,” he said.

“However, we remain on an unsustainable path which cannot be solved simply by borrowing money which needs to be paid back with interest, since our current path does not enable us to pay even our current bills, let alone new ones. We will continue to focus on improving operational efficiency and pursuing other reforms in order to put the Postal Service on a trajectory for long-term financial stability.”

DeJoy said he has directed the department to take an aggressive approach to reduce “ingrained inefficiencies” to try to cut costs, including implementing stringent restrictions on overtime, among other things. 

“By running our operations on time and on schedule, and by not incurring unnecessary overtime or other costs, we will enhance our ability to be sustainable and to be able to continue to provide high-quality, affordable service,” he said. “I call on every executive, employee, union and management association leader to join me in pursuing this simple objective that every service organization needs to achieve in order to be successful.” 

The news comes amid an avalanche of concerns over the agency’s ability to handle what is expected to be a flood of mail-in ballots this year, with Democrats saying changes DeJoy has made, including reducing overtime and adjusting delivery policies, may leave the agency even more unprepared.

“We believe these changes, made during the middle of a once-in-a-century pandemic, now threaten the timely delivery of mail — including medicines for seniors, paychecks for workers, and absentee ballots for voters —  that is essential to millions of Americans. While it is true that the Postal Service has and continues to face financial challenges, enacting these policies as cost-cutting or efficiency measures as the COVID-19 public health emergency continues is counterproductive and unacceptable,” Speaker Nancy Pelosi (D-Calif.) and Senate Minority Leader Charles Schumer (D-N.Y.) said in a letter to DeJoy Thursday

About Stephen Frank

Stephen Frank is the publisher and editor of California Political News and Views. He speaks all over California and appears as a guest on several radio shows each week. He has also served as a guest host on radio talk shows. He is a fulltime political consultant.

Comments

  1. Really??? says

    When was the last time a union bought control of a company???

    Oh, that’s right it was an airline.

    After less than a year the cuts started, and the promised pay increases never happened.

    Then came the bankruptcy protections.

    How about them apples.

    Here is an idea. Pay every Postal Employee minimum wage, and then hand out bonus payments based upon profit.

    Want to bet the USPS will become efficient and at least break even?

  2. Rottweiler says

    If anyone has tried to receive service from the postal services lately would know they should be out of business due to poor service and unacceptable attitude. Most employees could care less about their performance and why should they? They know they are untouchable. I am constantly delivering other people’s mail that is misdelivered as my neighbors return mine on our blocki. There is no continuity as there is never the same person assigned to our street. They deliver at anywhere from 5-10pm at night, when was it ever this bad when I was growing up we had the same postal worker for 20 years, 99% accuracy and a wonderful kind person to boot. They should reconsider going bankrupt and maybe instead of hiding behind the fact that they are secure in their position, maybe they should fire all of the horrible help and hire only those who take pride in their work, surely there are a few left instead of the old, stale, entitled workers that know they can never be fired even if their work ethic and attitude suck.

  3. NOt a cent more to subsidize the P.O.
    They should be forced to go private. Get private funding and go on the stock market.
    The present state is ongoing and unacceptable.

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