The Senate Homeland Security Committee approved a bill week that would give the Postal Service temporary relief from making full payments to the benefits fund and increase their ability to borrow money. The House already passed a bill to allow the Post Office to alter how they finance paying for health care benefits and who knows they may be back into negotiating a new contract like many other government agencies have done. They are also considering a 5 day work week and closing facilities. Perhaps paperless methodologies are having an impact after all this time, not good news for the post office though. BD
WASHINGTON — Senators expressed mounting concern Thursday about the worsening finances of the United States Postal Service, but fretted over proposals to save money by cutting service.
The Postal Service lost $2.4 billion in the latest fiscal quarter, in addition to $2.3 billion in the first half of the fiscal year that began Oct. 1. Despite billions in cost reductions, the Postal Service projects a $7 billion loss for the year.
The service has said that it will not be able to make legally required contributions to finance future retiree health benefits. The prepayments are a major drain on cash flow.
Several members, however, have noted their constituents’ opposition to the closure of postal units in their districts. Currently, the post office is considering almost 700 postal stations and branches for consolidation or closure, though not all of them will close.