Postal Service, Citing Losses, Seeks Higher Stamp Prices
On Thu, 11 May 2017 15:55:39 -0700 (PDT)
bob haller wrote:
On Thursday, May 11, 2017 at 6:25:11 AM UTC-4, burfordTjustice wrote:
Perhaps a better route would be to increase firing/termination
authority and swing a wide ax.
Postal Service, Citing Losses, Seeks Higher Stamp Prices
The U.S. Postal Service is hoping it can soon raise stamp prices by
a penny or more.
The postal service on Wednesday reported a quarterly loss of $562
million, despite growth in package delivery, due to continued
erosion in the use of first-class mail as well as expensive
mandates for its retiree health care obligations. It also
attributed losses to a forced reduction in stamp prices last year.
The postal service is generally barred under federal law from
raising prices more than the rate of inflation. But it is seeking
greater regulatory leeway to increase prices, including a one-cent
rate hike provided in a measure being considered by Congress. The
current cost of a first-class stamp is 49 cents.
€śAmerica deserves a financially stable postal service that can
continue to play a vital role in our economy and society,€ť said
Postmaster General Megan J. Brennan. She said the postal service
continues to aggressively cut costs.
The financial report shows what it described as €ścontrollable€ť
income of more than $12 million for the three months that ended on
March 31. But when taking into account expenses to prefund retiree
health care and other items considered beyond the managements
control, it posted a loss. Operating revenue came to $17.3 billion,
a decrease of $474 million from the same time last year. The postal
service continued to notch double-digit growth in its package
business, boosted by the strength of Amazon and other Internet
retailers. But that wasnt enough to offset losses in both
first-class mail and marketing mail, also known as €śjunk mail,€ť
which make up the bulk of revenue.
The postal service is urging relief from the mandate to pre-fund
retiree health benefits. Legislation in 2006 required the postal
service to fund 75 years worth of retiree health benefits,
something that neither the government nor private companies are
required to do.
Legislation passed by a House committee earlier this year would
relieve the postal service of much of the expensive pre-funding
requirements and allow a one-cent increase in the price of a
first-class stamp. The Postal Regulatory Commission is also
reviewing whether to offer more leeway to raise stamp prices, a
move opposed by many trade groups.
First-class mail volume is down as people rely more on email for
online bill payments. The number of first-class and marketing mail
items delivered during the last quarter was 34 billion pieces,
nearly a 4 percent decrease.
The financial numbers released Wednesday bring the postal
services year to date earnings to $900 million, better than the
$1.7 billion loss for the same period last year, largely due to
reduced expenses for the health care pre-funding.
The postal service has lost money for 10 years in a row. It says
the continuing red ink hurts consumers because it cant make
necessary investments to ensure €śprompt, efficient and reliable
postal services,€ť such as by updating delivery trucks and
equipment. Due to public resistance, it dropped a previous proposal
to cut costs by eliminating Saturday mail delivery.
€śTodays financial report shows the underlying business strength of
the U.S. Postal Service while also indicating the need to address
external matters beyond USPS control,€ť said Fredric Rolando,
president of the National Association of Letter Carriers, which is
backing the House bill.
An independent agency, the postal service does not use taxpayer
money for its operations.
congreess forces post office to do dumb things. like saturday
delivery....
major cost cuts are necessary. but congress prevents them
Did not read above before running mouth did you:
Not Congress;
"Due to public resistance, it dropped a previous proposal to cut costs
by eliminating Saturday mail delivery."
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