2012 May 10 - postalnews blog

Archive for May 10th, 2012

Nightmare scenario: Vice President Issa?

Could Mitt Romney be considering Darrell Issa as a possible running mate? It’s not as far-fetched as you might think- Thomas K. Arnold of the North County Times had this to say, discussing the prospects of Issa’s Democratic opponent, Jerry Tetalman:

as outgunned as Tetalman is in both fundraising and name recognition, he could get a golden ticket to Washington —- if Issa, as I’m hearing more and more in GOP circles, is chosen by presumptive Republican presidential nominee Mitt Romney as his running mate.

Yes, you heard right: Issa is reportedly on a short list of potential candidates for the vice presidency, according to various sources, from blogs to Tweets airing on the Sunday news programs.

via ARNOLD: Is Issa made for the ticket? : North County Times – Californian.

Statement from NALC on USPS Q2 financial results

May 10, 2012 — Today’s U.S. Postal Service’s announcement about the most recent fiscal quarter reinforces our view of the financial situation facing the USPS and how it can be fixed.

The Postal Service reports that 96 percent of its losses – $3.05 billion out of $3.18 billion – have nothing to do with mail delivery expenses, but rather result from an external political mandate. Since 2007, Congress has compelled the Postal Service to pre-fund future retiree health benefits for 75 years into the future, an obligation that will cost the USPS $11 billion this year. No other public agency or private company in the country is compelled to pre-fund.

Today’s report follows on last quarter’s financial statement by the Postal Service, which also showed that in operational terms the Postal Service is doing quite well – in fact last quarter there was a $200 million profit delivering the mail, with pre-funding accounting for all the losses.

The Postal Service’s own data shows that the first thing Congress needs to do is address this artificial political burden that is driving almost all the red ink. For the first half of this fiscal year, the USPS reports that pre-funding accounts for $6.2 billion of the $6.5 billion in red ink.

It would be absurd to start to dismantle the universal network and degrade service to the American people and America’s businesses – when almost all of the red ink has nothing to do with the costs of those services but stems directly from a burden that Congress imposed and Congress could fix overnight.

The service reductions called for in the Senate bill, and the worse ones called for in the House bill, would not fix the actual financial drain on the Postal Service. Rather, they would worsen things by driving customers away and reducing revenue.

We acknowledge that a thoughtful restructuring of the Postal Service is needed to adapt to the country’s changing needs. For 200 years, the USPS has adapted to an evolving society. Neither of the bills before Congress provides for such a thoughtful or constructive approach.

The Postal Service’s own figures and statement shows that the major cause of the financial problems is not – despite the conventional wisdom – Internet competition. In fact, the USPS today, as last quarter, cited a sharp rise in the shipping of packages ordered online as contributing to the good operational performance. That bodes well for the future, because that part of the business will continue to grow. If Congress will step up and fix the pre-funding problem it created, the USPS can focus on taking full advantage of this and other opportunities to better serve the public.

For 30 years, the Postal Service has not used a dime of taxpayer money, while providing the world’s most efficient and most affordable delivery service.

via Statement from NALC President Fredric Rolando about the Postal Service’s financial situation.

APWU Statement on USPS Announcement About Rural Post Offices

The APWU is continuing to analyze the Postal Service’s May 9 announcement that it will allow rural post offices to remain open, but with reduced hours.

“We support efforts to preserve service to the American people,” said APWU President Cliff Guffey. “In fact, we believe the long-term survival of the Postal Service depends on expanding service and offering new products.

“We applaud the proposal to allow greater community input on rural postal services and to keep offices open, but we are disappointed by the decision to reduce hours at these offices.

“The outpouring of interest in USPS plans demonstrates the importance of the Postal Service to our nation. It also demonstrates the importance of maintaining the service standards the American people have come to expect.

“Unfortunately, the Postal Service’s latest plan will not solve the USPS financial crisis, and it is important to note that 223 mail processing facilities remain in jeopardy.

“Only Congress can restore financial stability to the USPS by relieving the agency of the unreasonable requirement to pre-fund 75 years worth of healthcare benefits for future retirees in a 10-year period.

“It is imperative that the House act quickly to consider postal reform. We believe the appropriate starting point for discussion is the bill that was approved by the Senate on April 25.

“We urge House leaders to begin debate on the Senate bill.”

via APWU Statement on USPS Announcement About Rural Post Offices.

USPS reports $6.5 billion YTD loss- $6.1 billion of it due to PAEA

The US Postal Service today reported a second quarter loss of $3.2 billion today. While the USPS notes in its press release that the loss would have been $486 million without PAEA, it doesn’t mention two important facts- first, that the USPS has not actually made the $2.7 billion PAEA pre-funding payment that accounts for most of the loss. Secondly, the release doesn’t mention the year to date totals. You’ll find those numbers in this table, on page 24 of the 10-Q report filed with the Postal Regulatory Commission:

The table shows that the USPS year to date operating loss, including PAEA, now stands at $6.464 billion. Of that, the arbitrary PAEA prefunding requirement accounts for $6.1 billion. That means that the total year to date loss from actual postal operations is just $364 million. Given that the USPS has not paid a penny into the PAEA “trust fund” this year, and has no intention of doing so, that $364 million loss reflects reality- the billions in losses talked about in the press release are numbers created by politicians. Read the rest of this entry »

NAPS Welcomes USPS announcement on rural post offices

Statement by President Louis M. Atkins, National Association of Postal Supervisors:

The announcement by the Postal Service on May 9, 2012 that they were adjusting their plans on post office closings and their decision to maintain service for post offices throughout the country was indeed welcome news to NAPS.

Our concern from the time the Postal Service announced their original closure plans was that their plans were too aggressive and that the proposed changes could deny many citizens, particularly in those in rural America, from the opportunity to continue to have postal services in their local communities.

From the information the Postal Service has provided about continuation of service throughout the country, we believe that both business mailers and local communities now have the certainty of the Postal Service will continuing to maintain universal service throughout the country.

The Postal Service has served the mailing of every corner of the United States, from colonial times up to today. The announcement by the Postal Service will ensure that this obligation to serve the American public will continue into the future.

Our organization will continue to support the provisions of S1789 that received bipartisan support in the United States Senate and urge that the House of Representatives embrace the changes that are outlined in the Senate bill and complete a legislative initiative that supports the health and prosperity of the United States Postal Service.

APWU: More lies from Fox News

From the American Postal Workers Union:

Fox News may have set a new record for inaccurate reporting this week in a story about the Postal Service.

The story, which was broadcast on May 8 and posted on Fox’s Web site, frantically warns viewers and visitors that because of a bill approved by the Senate, “taxpayers may be on the hook for Postal Service losses.” The Web posting even has a handy “taxpayer calculator” that shows visitors “how much the bailout will cost you.”

There’s just one problem: As Fox admits, taxpayers don’t pay a dime to support the Postal Service. And nothing in the Senate bill would require them to start. Read the rest of this entry »

Sanders: Good News, Bad News in New Postal Plan

WASHINGTON, May 9 – Sen. Bernie Sanders (I-Vt.) today welcomed Postmaster General Patrick Donahoe’s decision to abandon plans to close 3,600 rural post offices, including 15 in Vermont, but voiced reservations about a new plan to cut hours of operation.

Sanders called on the House to pass a Postal Service reform bill that a bipartisan majority of senators approved on April 25.

He said he is increasingly confident that many postal sorting facilities once slated for shutdowns will be spared, including one at White River Junction, Vt.

But he questioned aspects of Donahoe’s new plan, announced earlier today, to cut hours of operation at 13,000 post offices, including 145 in Vermont.

“The good news is that all 15 rural post offices slated to be shut down in Vermont will remain open. The bad news is that dozens of post offices in Vermont and around the country will see their hours cut. I will continue to fight to keep as many of these post offices open for as long as possible,” Sanders said. Read the rest of this entry »

Letter Carriers’ Annual Food Drive Set for May 12

WASHINGTON, May 9, 2012 /PRNewswire-USNewswire/ — The National Association of Letter Carriers (NALC) will conduct its 20th annual food drive to combat hunger this year on Saturday, May 12. On that day, letter carriers will collect non-perishable donations as they deliver mail along their postal routes.

It is the largest single-day food drive in the country, and is held annually on the second Saturday in May in 10,000 cities and towns in all 50 states, the District of Columbia, Puerto Rico, the Virgin Islands and Guam.

Last year, letter carriers collected 70.2 million pounds of food donations along their postal routes, bringing the total to more than 1.1 billion pounds for the NALC’s food drive, which began in 1992. Read the rest of this entry »