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Us Postal Service Proposes Cutting 120,000 Jobs, Pulling Out Of Health-Care Plan

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http://www.washingtonpost.com/politics/usps-proposes-cutting-120000-jobs-pulling-out-of-health-care-plan/2011/08/11/gIQAZxIM9I_story.html?hpid=z2

The financially strapped U.S. Postal Service is proposing to cut its workforce by 20 percent and to withdraw from the federal health and retirement plans because it believes it could provide benefits at a lower cost.

The layoffs would be achieved in part by breaking labor agreements, a proposal that drew swift fire from postal unions. The plan would require congressional approval but, if successful, could be precedent-setting, with possible ripple effects throughout government. It would also deliver a major blow to the nation’s labor movement.

.....

During the past four years, the service lost $20 billion, including $8.5 billion in fiscal 2010. Over that period, mail volume dropped by 20 percent.

.....

In a white paper on health and retirement benefits, the USPS said it was imperative to rein in health benefit and pension costs, which are a third of its labor expenses.

For health insurance plans, the paper said, the Postal Service wanted to withdraw its 480,000 pensioners and 600,000 active employees from the Federal Employees Health Benefits Program “and place them in a new, Postal Service administered” program.

.....

The Postal Service has reduced its workforce by 212,000 positions in the past 10 years and recently announced it is considering the closing of 3,700 post offices. It also has asked Congress to allow it to deliver mail five days a week instead of six and to change a requirement that it pre-fund retiree health benefits.

....

The USPS said it needs to reduce its workforce by 120,000 career positions by 2015, from a total of about 563,400, on top of the 100,000 it expects by attrition. Some of the 120,000 could come through buyouts and other programs, but a significant number would probably result from layoffs if Congress allows the agency to circumvent union contracts.

So it's getting rid of over 200,000 positions.

This can only do wonders for the jobless recovery.

Everything is facing bankruptcy.

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Why don't they just privatise it like Europe's doing?

Excellent for the companies running the privatised services - casualised workforce on zero hours/piece work rates. Not so excellent for the individual, as opposed to business, customer - good luck getting your mail, watch the cost of postage go up, hope you've got a car to fetch mail from the depot miles away if you weren't in when the delivery man/woman called when you were out, if he/she calls at all.

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broken window fallacy mate

your OPs have gone from terrible to awful

don't be so harsh, at least this post is not a zerohedge copy & past job :lol:

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http://www.zerohedge.com/news/here-comes-going-postal-sequel-us-postal-service-cut-120000-jobs-avoid-bankruptcy

That the US postal service is on the verge of bankruptcy is well-known by now and was discussed by Zero Hedge long before it became mainstream news. Furthermore, as we previously noted, the key sticking point in cost reduction negotiations is the labor force compensation (80% of all costs), which is paid an average of $41.15 an hour, and which is over 60% unionized. As of today, we finally welcome the USPS to reality which has announced that, in an attempt to avoid bankruptcy, it is now seeking to reduce its total overhead by 20%, or a whopping 120,000 workers (a number which would amount to roughly an increase of 0.1% in the national unemployment rate).

To make the happy clappy thought police happy he's the Zerohedge post you've all been waiting for.

Cuddly_Teddy.jpg

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Why don't they just privatise it like Europe's doing?

Because they cannot. It is written into the US constitution and changing the constitution is very very difficult.

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Because they cannot. It is written into the US constitution and changing the constitution is very very difficult.

I thought it a bit odd that it hadn't already been. Thanks for the explanation.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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