Following today’s release of the U.S. Postal Service’s financial statement for the second quarter of Fiscal Year 2014, which covers January, February and March, NALC President Fredric Rolando released the following statement:
The Postal Service today reported a quarterly operating profit of $261 million, which brings the operating profit for the first half of fiscal 2014 to more than $1 billion. Driving the quarterly performance were the 8 percent jump in package revenue and—in a turnaround—the 1.6 percent increase in letter revenue.
These results reconfirm the steady improvement in the finances of the Postal Service, which has been operating at a profit since October 2012. Rising online shopping has sparked a jump in package revenue, while a gradually rebounding economy has stabilized mail revenue. That’s why the USPS forecasts a $1.1 billion operating profit this year.
Given these positive trends, it would be irresponsible to degrade services to the public, which would drive away mail—and revenue—and stop the postal turnaround in its tracks. Lawmakers shouldn’t dismantle the postal network that is profitable in meeting the needs of an evolving society.
Instead, legislators should address the factor that is causing 100 percent of the losses—the congressional mandate that the Postal Service, alone among all public agencies and private companies, be required to pre-fund future retiree health benefits.
We will be glad to work with lawmakers and the postmaster general to develop a comprehensive plan that strengthens the existing networks while addressing the unfair pre-funding obligation so the Postal Service, which is based in the Constitution, can continue to provide Americans with the world’s most affordable and efficient delivery network without a dime of taxpayer money.