Sunday, April 21, 2013

Cost Saving at the Post Office

We all know that the Post Office is in financial trouble.  But, it appears as though Congress, particularly Darrell Issa, the chair of the Oversight Committee, has refused to agree to significant changes that the Postal Service or its union has proposed, such as eliminating Saturday delivery.  But weirder than the Saturday issue is Congress' refusal to repeal the Postal Accountability Enhancement Act (PAEA) which mandates that the Postal Service fully fund retiree health benefits for future retirees. Yup, the Postal Service would have to fully fund future retirees' health benefits for the next 75 years and they would have to do it within a ten-year window.  And then you have Congress' opposition to a labor contract favored by both the Postal Service and the union; this would have probably saved us $4 billion over the life of the contract.

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