Privatize the post office

[PSUROCKS]

Really, Joe?  Ever consider that maybe you're overstaffed and overpaid for what you do?  $30 an hour to deliver letters?  Ever think maybe that is the reason the postal service has lost trillions of dollars over the years?  Naw, couldn't be, right?  I can't wait for the feds to get their hands on healthcare.
 

From today's Tribune-Democrat:


— The Postal Service's plan to end Saturday mail delivery would do more harm than good, and it distracts from the real solution, which is eliminating the “crushing burden of a deeply flawed retiree health benefits prefunding policy.”

The real key to saving Saturday delivery and those who rely on it for their medicine, packages and assorted products, not to mention the fact that rural communities rely on mail-order delivery, is to overhaul how the Postal Service is required to prepay its retirees’ health care. Simply stated, a 75-year liability has been reduced to 10 years.

While Congress addresses this issue, the Postal Service has lobbied the public to embrace five-day delivery as the answer to its problems. Misinformation such as a minimal loss of jobs and huge savings are not supported by the facts.

About 30,000 to 50,000 letter carrier jobs would be eliminated nationwide, while only 2 percent of the Postal Service’s expenses would be cut. The USPS is rushing to judgment and attempting, even without Congress studying the facts, to propose reducing deliveries that have made the USPS?unique in providing universal service six days a week for 230-plus years.

A broad coalition of stakeholders favors six-day delivery. This includes parcel shippers, direct marketers, magazine publishers, major mailers and consumer advocacy groups. The elimination of six-day delivery would hurt business and consumer interests while costing thousands of jobs.

Joseph G. Antal

Ebensburg

President, Pennsylvania State Association, National Association of Letter Carriers

[Wiener]

I know the letter carriers don't make that kind of cash and hour down here.  The start at like 15 and go up from there, the top out maybe be 30 but I know of no one down here that makes that kind of money to deliver the mail.  The one fellow that has done it for almost 35 years now makes 18 an hour.   Maybe they do need a paycut.  I personally think the USPS is going to go under unless of course we continue to bail them out. 

The good news is if they went under, I am sure we could find a private company to take their place.  Obama will then take over that private company but hey the private company would save it and the government won't.

[PSUROCKS]

I know the letter carriers don't make that kind of cash and hour down here.  The start at like 15 and go up from there, the top out maybe be 30 but I know of no one down here that makes that kind of money to deliver the mail.  The one fellow that has done it for almost 35 years now makes 18 an hour.   Maybe they do need a paycut.  I personally think the USPS is going to go under unless of course we continue to bail them out.  

The good news is if they went under, I am sure we could find a private company to take their place.  Obama will then take over that private company but hey the private company would save it and the government won't.

If he has 35 years in and is making $18 an hour, he'd better call the union.  The starting wage is just a bit shy of that.  I know guys that have 20 years in that make almost $60K.  Some make more.  It's the same wage scale throughout the country.

[PSUROCKS]

I was wrong, the starting wage is $19 an hour.

 http://postalwork.net/pay_scales.htm

And that was 2 years ago. 

[PSUROCKS]

More accurate:

http://www.nalc.org/depart/cau/pdf/wages/paychart1109.pdf

Seriously, over $20 an hour to start?  No experience required.  The mail basically comes sorted for you.   

[Wiener]

Like I said no bailout for the USPS, let them go under and a private company or maybe even all the private companies will divide up the routes and make it work better than the government ever could.  Just let the damn thing fail like it should and we start over.

Oh wait some of the nuts on here are going to think I mean going back to the pony express................. because they always think that if you enforce an old law you automatically go back to that era in time.   

[oldster]

Just a thought here.....the USPS is obligated to serve every mailing address in the US.  Private carriers could leave out non-profitable routes and do pretty much as they please.  Would we lose something of value if one of the few government agencies authorized by the Constitution is eliminated?  I don't know, but it bears some consideration, because once it is gone, it will not return.

Does the USPS receive government subsidies?  I believe that after they became independent 35 years ago or so (sometime in the '80's?) that they also became financially independent and responsible for their own finances.  Do they borrow money from the Federal government to meet the big shortfalls that they have experienced?  Are Postal Workers Federal employees and do they receive Federal pensions?

[yoyo]

No private company is going  to take over delivering mail door to door to every corner of the country for 44 cents a letter, will not happen.  The USPS will deliver the mail nobody else will touch (at a loss), the private companies will only deliver stuff they know they can make a profit on. Like most things that we have become accustom too, if  you try to take it away, there will be a fight.

Also, the private sector has a long list of big companies that have failed under the weight high wages for long term employees and promissed pension plans.

 

[PSUROCKS]

No private company is going  to take over delivering mail door to door to every corner of the country for 44 cents a letter, will not happen.  The USPS will deliver the mail nobody else will touch (at a loss), the private companies will only deliver stuff they know they can make a profit on. Like most things that we have become accustom too, if  you try to take it away, there will be a fight.

Also, the private sector has a long list of big companies that have failed under the weight high wages for long term employees and promissed pension plans.

 

Yeah, and almost all of them had crazy powerful unions..........see GM. 

[Wiener]

No private company is going  to take over delivering mail door to door to every corner of the country for 44 cents a letter, will not happen.  The USPS will deliver the mail nobody else will touch (at a loss), the private companies will only deliver stuff they know they can make a profit on. Like most things that we have become accustom too, if  you try to take it away, there will be a fight.

Also, the private sector has a long list of big companies that have failed under the weight high wages for long term employees and promissed pension plans.

 

So this would mean that private companies would not deliver the crap that comes everyday, but the USPS will at a loss.  If the USPS is a private company as Oldster states below then why are they not acting as such?  They can't, they can't do anything Congress doesn't approve for them, so I think that doesn't make them a private company, maybe they can write on paper they are, but by having to ask congress for things I believe that would make them under Government control.  Anything under Government control will stay there because they can use it for an excuse to raise taxes or in this case postal stamp prices.

This is the very first Government run think that has never really paid for itself because it was never intended to pay for itself.  It was intended to be paid for by the taxpayers of this nation.  It would not be in the Constitution if it wasn't intended to be totally government run like the military.  Of course the USPS doesn't conquer anything so they got shifted off to the side and are now treated like a stepchild when it was one of only three programs the Fed was permitted to take care of completely.

If we paid postal workers the same amount as soldiers I bet they would never have gone over their budget, but they treat the jobs like CG (Civilian Government)  jobs.  Overpaid for little work is what that truly amounts too.  I have seen it in action.

[GONAVY]

"About 30,000 to 50,000 letter carrier jobs would be eliminated nationwide, while only 2 percent of the Postal Service’s expenses would be cut. "

Wow, what kind of expenses do they have that losing 30,000 jobs would only effect 2%? Sounds a little fishy.

[yoyo]

Yeah, and almost all of them had crazy powerful unions..........see GM. 

point being "private" does not make you immune to failure or bailouts, even before bailouts became popular.

near and dear to J-town from about 2002,

WASHINGTON - The government's pension insurance program is seeking control of Bethlehem Steel Corp.'s underfunded retirement plan in what would be the largest such takeover in the agency's history.

The Pension Benefit Guaranty Corp. estimates that Bethlehem Steel's pension plan, which covers 95,000 workers and retirees, is underfunded by $4.3 billion.

The PBGC is proposing to terminate the pension plan Wednesday and to assume responsibility for benefits earned to that date, subject to legal limits.

"The PBGC is moving to protect the basic pension benefits of Bethlehem's workers and retirees because the company can no longer afford to maintain its pension plan," said …

[oldster]

Some interesting reading from http://people.howstuffworks.com/usps1.htm


'Postal Service Reform
By the mid-1960s, the Post Office Department was in trouble. Its management had little control over operations, and it was a sinking ship in dire need of reform. Congressman Tom Sneed of Oklahoma summed it up to the postmaster general in a 1967 hearing by the House Appropriations Subcommittee:
"Would this be a fair summary -- that at the present time, as manager of the Post Office Department, you have no control over your workload; over the rates or revenue; over the pay rates of the employees that you employ ... over the conditions of the service of these employees; you have virtually no control ... of your physical facilities; and you have only a limited control, at best, over the transportation facilities that you are compelled to use -- all of which adds up to a staggering amount of 'no control' in terms of the duties you have to perform?" [Source: USPS.com]"

"As a part of the ensuing reform, the Post Office Department officially became the United States Postal Service on July 1, 1971. At that time it became an independent establishment of the executive branch of the government of the United States rather than a part of the cabinet. It began operating more like a corporation, but with the benefit of the official mail monopoly that was established under the Private Express Statutes in 1792. Package delivery and express services do not fall under this law, making it possible for other companies to offer those services. "

"Setting postage rates is an often complicated process that involves the USPS Board of Governors (BOG) and an independent Postal Rate Commission (PRC). The BOG is responsible for identifying when a rate increase is needed. Once it has determined a need, the BOG files a formal request with the PRC. The PRC studies the request (sometimes for up to 10 months) and gives the BOG a recommendation.

If the BOG (with the exception of the postmaster general and the deputy postmaster general, who don't vote on these recommendations) votes to approve the recommendation, an introductory date for the new rates will be established.

If the BOG doesn't completely agree with the PRC recommendation, it may allow the decision to take place under protest, which means the BOG can go back to the PRC for additional study and reconsideration, or they may request judicial review of the recommendation.

If the BOG receives a revised recommendation from the PRC, it can order the new rates to be placed into effect. If the BOG ultimately determines that revenue generated by the recommended rates will not meet operating costs, the request can be modified and resubmitted to the PRC.
"

[PSUROCKS]

Sure, but you have to admit being affiliated with the federal government and having a unrealistic union improves your chances for failure.

It's about incentive.  No one that works at the post office has any incentive to improve.  Their raises are guaranteed.........all you have to do is show up.  Bust your tail or do the minimum, you get the same raise.  Everything else is done by seniority.  Again, it provides little incentive to excel......often the downfall of a business.  

point being "private" does not make you immune to failure or bailouts, even before bailouts became popular.

near and dear to J-town from about 2002,

WASHINGTON - The government's pension insurance program is seeking control of Bethlehem Steel Corp.'s underfunded retirement plan in what would be the largest such takeover in the agency's history.

The Pension Benefit Guaranty Corp. estimates that Bethlehem Steel's pension plan, which covers 95,000 workers and retirees, is underfunded by $4.3 billion.

The PBGC is proposing to terminate the pension plan Wednesday and to assume responsibility for benefits earned to that date, subject to legal limits.

"The PBGC is moving to protect the basic pension benefits of Bethlehem's workers and retirees because the company can no longer afford to maintain its pension plan," said …

[oldster]

Sure, but you have to admit being affiliated with the federal government and having a unrealistic union improves your chances for failure.

It's about incentive.  No one that works at the post office has any incentive to improve.  Their raises are guaranteed.........all you have to do is show up.  Bust your tail or do the minimum, you get the same raise.  Everything else is done by seniority.  Again, it provides little incentive to excel......often the downfall of a business.  

Those are good points, PSU.  There needs to be protection for workers without giving away the farm, IMHO.  The union pendulum swung from very necessary to very abusive in many cases.  There needs to be a middle ground.  How do you get there?  I have no idea.