Friday, September 16, 2011

What do you mean, "default?"

No doubt, you've heard the news that the Postal Service will "default" on some obligations. Specifically, we will "default" on a congressionally mandated $5.5 billion payment to pre-fund retiree health benefits.

Some have wrongly concluded (like this Public Radio article) this to mean the USPS is going out of business, shutting down and won't deliver mail.

Postmaster General Donahoe cleared the air to the Senate Commitee last week. "Without legislative change this year, the Postal Service faces default, as available liquidity at the end of this month will be insufficient to meet our financial obligations."

A postal spokesman said  that default on the payment wouldn't affect mail delivery or postal operations. He said this, "We will continue to deliver the mail as we have for more than 200 years. ."

What are you coworkers and customers saying? Is there confusion over the word, "default?"

Comment here.

15 comments:

Anonymous said...

This is just the first/second default. The first was not to continue paying into FERS retirement. There will be more to come.

Anonymous said...

Employees should retire, once they reach the required time/age. That would enable the USPS to downsize.

Exhume said...

I agree with the Time/Age retirement. Yet that brings about another problem. If I get 30-35 years in...I should retire. What happens if I enter the Postal work force at 40-45. Then what..I am forced to retire at the age of 62 or 65. I think I would take a job that like that as it pays well and has good benefits.

Lets face it...if I put in 20-25 years or I start work at age 25 and I get 35 years in and retire at 60...well..if I am unable to get my finiancal affairs in order by then ....I never will.

Anonymous said...

"Default" isn't what's caused this confusion, it's the constant rhetoric from HQ that has everyone thinking we're circling the drain for sure. Now PMG wants to back pedal a little but it's too late. And this too will drive away business. No one rides a sinking ship.

Anonymous said...

Amen Exhume!

Anonymous said...

Driving away business because NOW people will be looking for another way to deal with their mail.

Anonymous said...

I agree with time/age idea, BUT I have worked as a PMR for 12 years, I'm almsot 40 now, so when would I retire? At age 70? I'll never be full time so I wonder if it's almost time for me to quit? Should I stay at a job where I have no benefits and no job security? The USPS will never hire any Postmasters, only OIC's to stay away from paying benefits. That's a time of the past.

Anonymous said...

I have 24 years and I am 54 years old.I can retire at 26 years with 56 years old.My office is on the closing list.What would be the thing to do?

Anonymous said...

PMG made a huge mistake trying to scare Congress with the constant threats of "default". Now our customers (both big and small) are looking for alternatives to the USPS and we're never going to get them back. Combine that with the closure of so many small, rural PO's and I think he successfully finished us off. I'm a 64 year old PM with only 8 years of career work and my PO is on the closure list. It was fun while it lasted.

Anonymous said...

I don't think it's the "default" talk that has people worried, it the possible closure of their post offices that hits home. I get more people asking if my office is going to close than I do about the Postal Service not paying it's bills; they don't understand the financial issues we are having with congress, but they sure do pay attention when they hear that their post office might be closed!

Anonymous said...

The PMG must carefully and simply address what he means. It must be put into terms that the employees and the majority of the public will understand. And also, what the effects of the default will mean to the employees--in simple and honest language.

Anonymous said...

The public does not care what financal state usps is in they want their office to stay open, they want a freindly face to wait on them and knows what they are doing and keep the cost down, they don't care about the higher ups how important they are or how they have plans of fixing the brokness of the postal service they just want it done. More action and less talk.
Nobody like a ball baby!!!

Anonymous said...

Frankly, I'm tired of congress and the higher ups in the postal service trying to "scare" the public as a device to get what they want. When do we say, as we would to any three year old who throws a tantrum, 'Enough! Go to your room and come back when you've calmed down and can discuss things rationally.'?

Anonymous said...

The only message customers are getting is the possibility of offices closing. My office is on the list, I am OIC at one which is not. When I am asked if this office is being closed, I reply, "Not yet." It is all a matter of time.

The decision makers do not want our advice or opinions on how to save USPS. They have blinders on and their course is set.

Grannybunny said...

There is a great deal of confusion out there. We, as Postal employees, need to educate ourselves on the issues and -- in turn -- educate our families and friends as to the true situation. Otherwise, those who wish to privatize/shut down USPS -- with their scare tactics of threatening taxpayer "bailouts" -- might succeed.