APWU: USPS Reports $1 Billion Operating Profit: So Why is Management Cutting Service?

apwulogoMay 9, 2014 – Midway through the fiscal year, the USPS is reporting a $1 billion profit from operations, with $261 million of that amount from the second quarter.

But you won’t read that in the mainstream media. Instead, you’ll hear – once again – that the Postal Service suffered losses of billions of dollars.

The truth is that the Postal Service’s well-publicized financial crisis is a manufactured one. It is the result of the congressional mandate that the Postal Service, alone among all public agencies and private companies, be required to pre-fund future retiree health benefits.

The positive balance sheet continues the steady progress in the finances of the Postal Service, which has been operating at a profit since October 2012. A dramatic increase in online shopping has sparked an explosion in package volume and revenue, while a gradually rebounding economy has stabilized letter revenue.

“All of this good news exposes an ugly truth,” said APWU President Mark Dimondstein. “Postal management’s zeal for cutting service and outsourcing operations in a thinly-veiled attempt at piecemeal privatization.”

  • Paythecostofdelivery

    Pmg Donahoe is dismantling and selling off the Postal Infrastructure as quickly as possible . People are getting mail stolen from cluster boxes, traveling long distances to find an open Post Office etc. Forget getting an ins claim paid or a refund for your certified that has no proof of delivery. Big junk mailers and the politicians have an agenda for the USPS and they are winning

  • GordonG

    Everything Postal Service management does is driven by one thing…Pay for Performance bonuses.

    Providing customer service is actually a hindrance towards that objective.

  • The truth hurts

    Hey Gordon! That position is old , tired and not true. Go back to your cave!

  • Pink Toe

    Our postmaster recently looked at our line of customers and said that they cost us a lot of money. He tries his darndest to make them mad enough to go to other non-postal stations, and cannot figure that customers want to come to us, the real Post Office.

  • common sense

    Sorry, Gordon, but they did away with the bonuses about a decade ago. Try to keep up old man!

  • UpToDate

    sorry common sense …actually, pay for performance is baaaack!

  • common sense

    You might want to actually READ comments before you reply. I never said anything about pay for performance- I was talking about bonuses. Annual “bonuses” (in lieu of salary increases) were done away with years ago. PFP is not a bonus. It’s a percent increase in pay- exactly like your COLA or step increase, (neither of which supervisors receive).

    If PFP is a bonus, then so are craft salary increases- even more so, since all a craft employee has to do to get HIS bonus is to just not get fired!