- Joined
- Apr 12, 2011
- Messages
- 3,576
The USPS financial troubles are based in the fact that the congress passed a law requiring it to fund their retirement program to 100%. Add to that they are still bound by agreements with other countries that were made in the 1800’s. They are in a situation no other companies face.
Most Fortune 500 companies fund at 75% to 80% and update contracts and prices as situations change. USPS doesn’t have this luxury. Congress must approve rate and contract changes
After the GM bankruptcy the government decided USPS must fully fund their retirement program. GM just handed it over to the Union. GM still pays the Union the agreed upon contributions. However it’s not all going into the retirement fund. The UAW retirement system is under funded and currently in trouble.
In our area anything sent to a local address goes to Milwaukee for sorting. Then it comes back to the local branch for delivery. The decision was made several years ago that it would be more cost effective to send everything on a 80 mile round trip than it was to maintain a local sorting facility
Thanks for proving my point.