Postmaster General Patrick Donahoe and members of the Postal Headquarters leadership team updated leaders of NAPUS, League of Postmasters, and NAPS on the financial condition of the Postal Service today. The overall financial picture of the USPS remains bleak, as First-Class mail volume continues to decline, with a current net loss of $5.6 Billion, and a year-end projected loss of $9 Billion.

Following the financial briefing, presidents of the three postal management associations requested time to discuss the impact on Postmasters and other supervisory personnel who may be impacted by the recently announced discontinuance study of more than 3,500 postal facilities. NAPUS President Bob Rapoza asked if impacted Postmasters would face layoffs and he was told that while the possibility of some layoffs may exist, the Postal Service has an obligation to provide the same protection for all employees and they would do everything possible to find landing spots for Postmasters.

Postal leaders committed to consider RIF Avoidance and Voluntary Early Outs (VER) as part of the process to reduce the need for layoffs. USPS Headquarters officials said they were committed to maintaining a good working relationship with the management organizations and would include them throughout the process.

Postmasters whose offices are on the Discontinuance Feasibility Study list are reminded that the current procedures could require several months before a post office could actually be closed. The Postal Service has introduced proposed revisions to the Discontinuance timelines which would allow the closing of a facility within 138 days, but that recommendation is not yet effective.

Postmasters who may be impacted by the Discontinuance Feasibility Study should remember that some of the offices on the review list may not be closed. Impacted Postmasters are encouraged to check the NAPUS website for updates on what will happen if their office is scheduled to be closed.

Charlie Moser

July 27, 2011

via NAPUS.

The US Postal Service yesterday released a rather sparse financial report (a single PowerPoint slide) showing that its fiscal year 2011 loss now stands at $5.6 billion with three months to go.

Postal operations account for $1 billion of the total loss. The remaining $4.6 billion is due to trust fund and accounting mandates imposed by the 2006 PAEA law. Since 2006 Congress has demanded $5.5 billion from the USPS annually for a so-called trust fund to finance health benefits for future postal retirees. As mail volume declines, the Congressional mandate forces the USPS to borrow money from the Treasury that it then loans back to the Treasury. (More creative accounting from the folks who brought you the “debt ceiling”!)