The Postal Service reported Friday it lost $3.1 billion in the third quarter of the fiscal year. With no end to the financial bleeding in sight, postal officials said they would default on payments to the federal government due next month.
"Our ongoing financial situation has reached the point of becoming a real, now cash crisis," said Lou Giuliano, the chairman of the Board of Governors at Friday's board meeting. "As things stand today, the Postal Service will not have adequate cash to meet all of our financial obligations by the end of the fiscal year, Sept. 30."
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13 comments:
Two weeks ago I received a letter in our mail box addressed to someone who does not live in our house. The receipient's name was not similiar to anyone in my household, and the receipient's address was Philadelphia...I live in Salisbury. The next day I put it back in our mail box with a note stating it needed to be delivered to the correct receipient. And USPS wonders why they are bankrupt?
Let's give them a bailout!! What's another 200 or 300 billion!
I smell a stamp cost increase coming.
What has more loafers than Kenny Shoes?
Wonder if they will wake up and reduce prices and improve service. Bet if all postage was priced the same per oz. we'd get more real mail and lots, lots, lots less junk mail.
How many remember when the postman delivered twice a day, walking, and a letter was three cents?
Oh by gone days
Unionized workers that are over paid. No customer service, poor delivery service and being replaced by technology. Time to pull the plug.
It is doubtful very many people have an understanding of large numbers, expeciallay our leaders. How is it possible for the postal service to loose a billion dollars a month? Isn't a billion one thousand million? That's a huge amount of money and they have lost 3.1 billion in the last quarter? If I am correct, isn't that three thousand+ million? And that's with a recent increase in postal rates. Something is not right here.
10:48, the system is losing money for several reasons. As you know, almost all personal correspondence has gone electronic. Now almost of one's mail consists of magazines and catalogues as well as bills, of course; however, now many people pay bills on line. Postal employees, as I understand, cannot be fired. They have very good pay and benefits, which accounts for most of the USPS expenditures (and consequent losses). Thousands of postal workers are also retired, enjoying the same raises and benefits that their working brethren receive. There are hundreds of very small, inefficient post offices, whose revenue cannot begin to keep up with expenses; finally, the USPS is recognizing that something has to be done about that. The postal employees in these offices will have to be transferred or retire; either way, we will be paying. You're right, a billion dollars a month does seem like an awful lot, but I can see how it happens.
I can't get the people that bash the post office. Someone commented about bad service. They come to your house 6 days a week whether you get mail or send any out. Sure mistakes happen along the way, but who else will take a letter from salisbury to.california in less than a week for 44 cents? Their business has been hurt by technology alone, not by laziness or incompetence. Its so easy to criticize what you know nothing about. A post office income raised me into a productive member of society. I thank my dad and am proud of it.
One note to add, congress took the usps's surpluses for years, and has also forced them to prepay their pension funds, something they don't even do for their own government employees. They actually forced the usps to OVERpay and will not reimburse them for those extra payments. Now all of a sudden, the post office is the bad guy.
What has more loafers than Kenny Shoes?
August 8, 2011 9:36 AM
Any union.
You can send a letter from Key West, Florida to Fairbanks,Alaska for 44 cents. Let's see UPS or Fed Ex do that! The mistakes are miniscule considering the billions of peices of mail handled daily. The problem is their management. the most poorly run company in the WORLD.
John U
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