Shock Doctrine At US Postal Service: Is A Manufactured Crisis Behind Push Toward Privatization?

Today, postal workers and their supporters are holding events across the country to press their demand for repealing the benefit-funding mandate and push back against calls for their workplace to be privatized. For months, Americans have heard dire warnings about the impending collapse of the United States Postal Service due to fiscal insolvency and a drop in the use of mail service. In early September, the U.S. Postmaster General told Congress that the USPS is close to default and unveiled a series of radical proposals to cut costs by firing up to 120,000 workers, closing several thousand facilities, scaling back deliveries, and reducing benefits for retirees. But many postal workers say the much-touted crisis facing the U.S. Postal Service is not what it seems. They argue the greatest volume of mail handled in the 236-year history of the postal service was 2006. They also point to a 2006 law that forced the USPS to become the only agency required to fund 75 years of retiree health benefits over just a 10-year span, and say the law’s requirements account for 100 percent of the service’s $20 billion in losses over the previous four years, without which the service would have turned a profit. Last week, Republicans introduced legislation to overhaul the USPS in response to a bill proposed by Democrats that would refund a reported $6.9 billion in over-payments to the USPS retirement plan, offer early retirement and voluntary separation incentives, adjust retiree benefits prepayment requirements, and preserve employee protections set out in collective bargaining agreements. We host a debate between Chuck Zlatkin, the legislative and political director of the New York Metro Area Postal Union, and Gene Del Polito, president of the Association for Postal Commerce in Washington, D.C.

TRANSCRIPT

NERMEEN SHAIKH: For months, Americans have heard dire warnings about the impending collapse of the United States Postal Service due to fiscal insolvency. Earlier this month, the U.S. Postmaster General, Patrick Donahoe, told Congress the USPS is close to default and unveiled a series of radical proposals to cut costs. Under Donahoe’s plan, the postal service would fire up to 120,000 workers, close several thousand facilities, scale back deliveries, and reduce benefits for retirees. Donahoe discussed his demands in an appearance on CNBC.

PATRICK DONAHOE: We need Congress to act immediately. We’ve been asking them—-We went over today and had a hearing before the senate. We need them to do three things: Give us the opportunity to resolve this prepayment issue, the $5.5 billion, let us move from six days to five day deliveries, and give us a refund—-we’ve overpaid one of our retirement funds by 6.9 billion; those three thing. We can take care of the rest of the issues we need to take care of ourselves..

NERMEEN SHAIKH: But, postal workers say the much touted crisis facing the U.S. Postal Service isn’t what it seems. Rather, they point to a 2006 law that forced the USPS to find enough money to fund 75 years of retiree health benefits over just a 10-year span. The American Postal Workers Union says the law’s requirements account for 100% of the services $20 billion in losses over the previous four years, without which the service would have turned a profit.

AMY GOODMAN: Well, today postal workers and supporters are holding events in every Congressional district today to press their demand for repealing the benefit funding mandate. The events are part of a national day of action dubbed, "Save America’s Postal Service". In addition to pushing for legislative changes, the postal workers are also pushing back against calls for the workplace to be privatized. I’m joined by two guests to debate this issue. Chuck Zlatkin is the Legislative and Political Director of New York Metro Area Postal Union, he’s joining us here in New York. And Joining us from Washington, D.C., is Gene Del Polito, he’s president of the Association for the Postal Commerce in Washington, D.C. Gene Del Polito, What’s the problem with the U.S. Postal Office today?

GENE DEL POLITO: Actually, it’s a combination of a couple of things. But, The fact is, is that the people responsible for coming up with a solution to the Postal Service’s problems have very fundamental disagreements in terms of the way they actually see what the cause of the problem is or what the solutions are likely to be. But, to put it simply, the Postal Service is operating under a significant burden in terms of what it has to fund for its postal retirees. But, At the same time, so much mail has been leaving the postal system for electronic alternatives that it now looks as if the Postal Service’s ability to retain the kind of revenue targets it would have achieved in the past is no longer possible.

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