Monday, April 20, 2009

Running out of cash?

Postal Regulatory Commission Chairman Dan G. Blair said that we could have a net operating deficit of $12.4 billion by the end of the year, based on a volume decline of 9.3 percent.

The loss for January alone was almost three-quarters of a billion dollars.

Blair also said that the analysis by the Commission shows "a cash shortfall by the end of the fiscal year." That means we might not have enough money to operate without a major change.

What are your thoughts? Click here to comment.


(The Chairman's testimony is available on the Commission's website at http://www.prc.gov/)

21 comments:

Anonymous said...

I've read the comments on the VER. Yes, I believe VER elegible employees should have an incentive to leave (5 years towards age/service). If this would happen, I believe thousands of employees would make the leap to retirement. This would save the Postal Serivce a BIG chunk of change. Junior employees do not make as much money and retirees pay their own health care premiums.

Anonymous said...

Then change it Darn it. QUIT talking about it and change. Just do it as NIKE says. There are so many ideas out there that the PO can do but WE ARE JUST DRAGING OUR FEET. It's stupid.

Anonymous said...

Collaspe the unions. Why does Federal Express have one per 120 who do not handle product or people and the USPS has one in 11??

Anonymous said...

Quit delivering mail on Sat. And do something before it is too late.

Anonymous said...

Our only product is service, so we need to retain enough employees to receive, process, and deliver mail. Steps to reduce administrative costs are further reductions at HQ, districts, and area offices. More central delivery options could be considered as well as reducing hours at smaller offices.

If USPS wants to see more employees take the VERA, they need to offer an incentive; years added to age or service would be a good starting point.

Anonymous said...

This should not be a surprise to anyone. We have plans on how to evacuate a building for biodegradable splills. We have plans on how to continue operating if we are locked out of our facility. Do we have plans on how to keep the organization operational BEFORE we run out of funds? I can't say I've seen or heard of any that aren't scheduled to take a year to realize. Or is the plan to simply run out operating capital in an attempt to force Congress to make a decision. If so, that's a risky game we are playing.

Anonymous said...

too many chiefs and not enough indians. We are the United States Postal Service, too much management keeps "service" the last thing in our name.

Anonymous said...

Start At The Top!! We hear cut back, cut back, well start the cutbacks at the top and that will save enough for the Postal Service to stay in business for a LONG TIME.

Anonymous said...

I agree with the writer who wrote"DO SOMETHING". The postal service is coming up with ideas but no action.
We have PTF'S in our office who sit and watch the clock because their work is done but no one tells them to leave.
The money is pouring down the drain and no one is stopping it.

James said...

Five day delivery and change park and loop routes to mounted are two areas that will affest the bottom line. If we are to operate as a business we must cut the dead weight and close small un-productive offices.

Anonymous said...

Deliver only one in 3 days. First class mail does not guarantee delivery in less than a week! If they faster delivery they can use priority or express mail. We can save a lot in this tough times by taking bold steps and why ask approval from government if we do not use any of federal funds. We follow them when we need those funds. they are not going to help a bank style bail out when we are in real trouble operating it before incurring loses to employees.

Anonymous said...

Tour compressions have not been thought out carefully. Employees that lost their bid assignments and are forced to rebid, need to be trained in their new areas to assure correct processing of the mails. We cannot afford to delay the mails by negating this process.

Anonymous said...

We may be a separate Federal entity, in that we are self-supporting. But have we forgotten that the United States Postal Service is precisely that . . . SERVICE? Congress can bail out GM a second time, to the tune of more than 3 billion dollars, yet a government entity is left hanging . . .

Anonymous said...

Postal employees need to actively contact there government representatives and ask them to support 5 day delivery. We also need to continue to consolidate operations when ever possible. Instead of staffing level 11 and 13 offices with Postmasters, use PTF's and reduce the daily hours from 8 to 5. Finally, the postal unions need to have some sense and make concessions that will allow for our survival. If we are expected to run as a business, Congress neds to stop tying our hands and give us the freedom to do so.

Anonymous said...

In response to the comment that VER eligible employees should be given an "incentive" to retire. come on now.... the postal service is billions in the red!

Feedsack said...

We shouldnt wory about being in the red. If the US can bail out banks the coal industry and the auto industry they better get ready to bail out the Postal Service. Nuff said.

Anonymous said...

Don't bank on that so called "bail out". Do you really think that's going to happen?

Anonymous said...

In addition to the ongoing measures to consolidate operations and routes, the USPS should look at cutting fat at every single level within. The bonus program should go and be replaced or not. We are in the business to provide service to our customers and should be doing so without being somehow motivated to line our own pockets. If one cannot come to work and earn their normal wage, then perhaps they should go to work for one of those certain larger retail companys in the private sector. Let's put the term "service" back into our name. Carriers should not be out after dark and especially after normal business hours. How considerate is that to every party involved? Our customers are getting fed up with what they feel is "poor service"; and they deserve much better. Walkout routes should be maximized wherever possible. Electric city route LLV's or the like should be considered to replace the existing fleet. Going to a five day week would save considerably, but as a last resort. And be advised to choose the down day carefully. Most businesses would likely vote for saturday. Most of my general public have stated the same. And last but not least, if you want more of our people to retire during the current economic age, then the VERA must be much more appealing. Then and only then will you see more of the numbers you are desiring which will ultimately have that impact on the bottom line you are wishing to obtain.

Anonymous said...

Everyone loves to pick on the small offices. The only valid point is the work hours being reduced to earned hours. Small offices account for less then 1% of the operation costs nation wide! Someone recommended they replace the PM’s with a PTF. Assuming that would be a PRF clerk, the union would not allow the clerk to perform all the daily duties that a PM must perform because they would be crossing crafts. PM’s in small offices have to cut the grass, scoop the snow, mop and sweep the floors, make small repairs, ect. If the USPS allowed clerks to run the small offices, which the APWU has been trying to do for years, the costs would go up because they would have to hire janitorial services. Area maintenance would have to cut the grass and scoop the snow, or they would have to contract those expenses out as well. PM’s are also required to deliver the mail if a rural carrier called in sick, another cross craft issue. Only an EAS employee can be charged with the responsibility of financial accountability. So each office would have to become a contract station with all accountability transferring to a local PM….which only increases his/her work load. I have one contract station, would not even dream of being responsible for 4-5! Let’s keep thinking before we go there!

Anonymous said...

Thank you annonymous for sticking up for the small offices. Obviously others don't know a darn thing about rural communites. Stop picking on the small office and start seeing what's going on in the large ones and in the proccessing plants. How many custodians are needed per square foot? Too many. We in small offices are providing rural America the service to which they are entitled. We are all on the same team. Cutbacks need to start at the top.

Anonymous said...

And do not forget, Postmasters do not get COLA raises or overtime. The clerks I use to work with now make about $2.00 an hour more than I do now. They get overtime for every minute they work past 8 hours.