posted on August 25, 2009 05:13:38 PM new
AUGUST 26, 2009 Post Office Plans Cuts Via Buyouts Article
By ALEX ROTH
The U.S. Postal Service is offering buyouts to tens of thousands of employees as it faces financial losses caused by the recession, as well as changes in the way Americans communicate.
As many as 30,000 employees will be eligible for the buyouts, which postal officials estimate could save the agency $500 million a year. The Postal Service expects to lose $7 billion for the fiscal year ending Sept. 30.
The buyouts, under which eligible workers will receive $15,000 payouts, come as the Postal Service is enacting other cost-cutting measures.
The agency has closed six district offices, instituted a nationwide hiring freeze, cut more than 100,000 work hours and frozen salaries. A proposal pending in Congress would eliminate Saturday service.
Yvonne Yoerger, a spokesman for the agency, said the Postal Service has lost money every year since fiscal 2005-06. In the third quarter of 2009, mail volume dropped 14.3% from the same period in 2008, she said.
Part of the reason for the drop in mail volume is that people are replacing letters with email and other forms of electronic communication. The recession has taken a toll, as well. Some of the Postal Service's largest customers were financial and real-estate firms.
Those eligible for the buyouts are largely employees in processing facilities. Letter carriers aren't eligible because the number of U.S. addresses grows by 1.5 million each year.
William Burrus, president of the American Postal Workers Union, which represents 265,000 employees, said he was satisfied with the terms of the buyout offer. But he said Postal Service executives were overstating the financial peril facing the agency. He predicted that volumes will largely recover once the recession ends.
The closure of Post Offices is not limited to the U.S., as the U.K Postal System is having the same problems. Here is an article about residents of a U.K. village fighting a closure - (revised to mention that they were not successful).
posted on August 25, 2009 10:04:07 PM new
I'm sad to hear of anyone losing their jobs. I'm amazed that the USPS didn't foresee the effect email would have on their business and adjust their business plan accordingly. They could have cashed in on the email explosion by having USPS verified email addresses with a physical address on file, allowing for easy spam filtering and consequences for abusers.
posted on August 26, 2009 05:03:27 AM new
They are talking here in Fort Wayne about closing 2 offices, one is which I use just about every day. I feel sorry for the 'Posties' I have gotten to know over the years, they are good people and have helped me a lot. I take them Christmas cookies and candy every year and they keep me laughing every day.
posted on August 26, 2009 05:55:12 AM new
USPS did try to cash in on e-commerce years ago -it came up with a system where the Ebay buyer and seller both register with USPS for ACH payment.
When the buyer made payment to USPS for item won,seller is then notified by USPS to ship with DC.
When the shipment is delivered,then USPS releases the payment to the seller.
USPS never promote it on a grand scale,not too many people use it or even know it exists!
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There is no 'Global savings glut',only wild horses and loose bankers.
posted on August 26, 2009 06:42:21 AM new
Your right about that hwahwa - I never hear of that program.
I hate to hear of more people losing their job as well. I really hope this ends soon.
My husband's company (J&J) did their second round of lay offs this past Monday. Lucky he was not part of it.
[ edited by ebabestreasures on Aug 26, 2009 07:33 AM ]
posted on August 27, 2009 03:45:37 PM new
My postal carrier told me the other day 5 days mail delivery is a 'sure' thing !It could be either Saturday or Tuesday!
Has any one heard something similar?
And what about the COngress?
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There is no 'Global savings glut',only wild horses and loose bankers.
o you mean NOT part of it??