NALC: USPS made $600 million delivering mail in 2013

NALC-LOGO

Nov. 15, 2013–Statement by Fredric Rolando, president of the National Association of Letter Carriers:

The USPS today reported an operating profit of $600 million for fiscal 2013, but a net loss of $5 billion due to the 2006 congressional mandate to massively pre-fund future retiree health benefits. This mandate–a political requirement placed on no other agency or company in the country–cost $5.6 billion.

That means the Postal Service, which doesn’t get a dime of taxpayer money, earned a profit of $600 million delivering the mail. In 2012, the agency reported an operating loss of $4.8 billion and a total loss of $15.9 billion due to a pre-funding expense of $11.1 billion.

The dramatic improvement in postal finances announced today by the U.S. Postal Service is great news for 300 million Americans and millions of business relying on USPS for the world’s most affordable delivery service.

As the economy recovers from the Great Recession, the trends underlying this performance bode well for the future. Mail revenue largely stabilized over the past year, down just 2 percent, while revenue from package deliveries skyrocketed by 8 percent as online shopping increased. This shows that the Internet is not a threat to the Postal Service, but an opportunity.

Exciting developments, such as the recently announced USPS-Amazon Sunday package delivery program, reinforce these positive trends.

Now it’s time for Congress to set aside bills that focus on cutting service and attacking the pay and benefits of postal workers instead of addressing the real cause of the crisis: the 2006 pre-funding mandate.

The Postal Service is positioned for a strong comeback if lawmakers act sensibly–by addressing the pre-funding fiasco that created an artificial financial crisis, and by freeing the Postal Service to use its universal retail and delivery networks to innovate and grow.

 

  • san

    this guy is an idiot

  • 30 Year Vet

    When your burdened with levels and levels of unneeded and overpaid management positions or the 100s of thousand no show buddy buddy jobs that the GOB (Good Ole Boys) put in place. You’re headed for certain doom.

    • schnufus

      Prefunding, prefunding, prefunding. Got it?

      • 30 Year Vet

        The PO signed off on that prefunding deal back in 2006 which enabled them to get there hands on an 8 billion dollar loan. Now the ones who took that money and wasted it while beefing up their retirements are no longer hear.

        • common sense

          I love how people just make stuff up!

          The PO didn’t “sign off” on ANYTHING! That’s not how laws are passed. CONGRESS passed PAEA, and Bush signed it. “The PO” had NO say in it whatsoever.

          There was NO $8 billion loan. PAEA gave the PO back SOME of the billions it had been overcharged for CSRS pensions- that’s not a loan. PAEA also required that the USPS LOAN THE TREASURY $5 BILLION A YEAR!

          You’re welcome to your own opinion, but you don’t get to make up your own FACTS!

          • RIF ed

            Does anyone really know the real facts?

          • common sense

            If you don’t know the “real facts” by now you haven’t been paying attention.

          • 30 Year Vet

            If the PO didn’t borrow any money, then how are we at our bow wing limit of 15 billion, genius?

          • passin through

            The $15 billion borrowed is for the balance of the $5.5 billion per year pre funding tab that the USPS couldn’t pay. 30 Year Vet, you really need to go actually read some factual sources. Another part of the “loan”was that the long standing problem created when veterans bought back their active duty service time toward retirement. The pension time from the military was in accounts in the Treasury which required Congress to approve the transfer. The PAEA resolved that. Yep correcting accounting errors qualifies as a loan… Not.

          • 30 Year Vet

            Boy you postal bigwigs have an answer for everything. To bad none of you have an answer on how to run the Post Office.

          • common sense

            Funny, but you don’t seem to have the answer to anything, do you? Why don’t you just make up some more crap?

          • 30 Year Vet

            That’s where you’re wrong. I have many ideas how to make the Postal Service profitable. I’ve also voiced my opinion to many postmasters and supervisors. But being a virtual nobody it falls on deaf ears. If I was put in charge of the PO tomorrow I’d turn a profit in the first year.

          • common sense

            Now THAT’s funny!

            A guy who can’t do simple arithmetic, that makes up stuff that never happened, can save the USPS!

            Sorry chump, but you sound just as dumb and clueless as the crew that’s in there now- babble on!

          • Eric Simon

            Read 30 Year Vets “comment history”. I’m convinced the Postal Service will begin to show a profit, at least on his route once he retires. For the betterment of all us or at least your local peers please find another job that’s more suitable like maybe flipping burgers for minimum wage?

          • common sense

            You seem to be confusing even yourself! You claimed that the USPS “signed off on” PAEA, (whatever that was supposed to mean) in order to get an $8 billion loan. Those are both lies. The USPS didn’t “sign off” on anything. It also didn’t get an $8 billion loan because of PAEA.

            PAEA required the USPS to send the Treasury over $5 billion a year. Since the USPS didn’t have the money after the recession hit, it had to BORROW up to its EXISTING $15 billion credit line in order to SEND THE MONEY RIGHT BACK TO THE TREASURY.

            So basically, Congress told the USPS it could keep the $15 billion line of credit IT ALREADY HAD, but instead of using it to fund investment in infrastructure, it had to use it to send $5 billion a year to the Treasury. Oh- and even when the credit line got maxed out, the USPS still had to keep sending the money! Yeah, who wouldn’t “sign off” on a sweet deal like that!?

            Excuse my shouting, but you do seem to a bit dim, so maybe shouting will help? How can someone who claims to be a “30 year vet” be so ignorant of facts everyone else has known for years?

          • 30 Year Vet

            If I had any sense do you think I would of stayed in this dump for 30 years. Working for angry abusive heartless bosses. I think not. I’m making sure my kids go to college. I could never live with myself if I had to push them into a life of tourcher know as the Pistal Service.

    • Eric Simon

      Keep your union job 30 year vet as its the best your ever going to accomplish