Without Pre-Funding Obligations The USPS Would Profit How Much?

United States Postal Service fleet; U.S.A.

The new USPS Financial Report issued Friday further validates the claim that the Postal Service is neither broken nor in crisis. Excluding the pre-funding expense the USPS has turned a $660 million profit delivering mail in fiscal year 2013. Showing again that Senator Carper, Senator Coburn and Congressman Issa are manufacturing a postal financial crisis as an excuse to dismantle it. Standing in their shadows are vultures named FedEx and UPS.

Senator Carper on Friday in an interview with NPR spoke of the need to “right size” the Postal Service. Apparently Mr Carper has not noticed that the Postal Service has eliminated 31% of its jobs in the last 10 years. Going from a career workforce of 729,000 in 2003 to slightly over 500,000 at the present time. While letter mail volume has dropped, it has been made up by a spike in highly profitable parcel delivery that as of this moment is at all time highs. Adding to that the Postal Service now delivers to 10.8 million more delivery points than in 2003. Yet Carper makes the outrageous claim that the Postal Service needs to be “right sized” and has too many workers. Mr Carper just insulted 500,000 postal workers and the intelligence of any informed observers.

NALC President Fred Rolando attempted to enlighten congressional leaders on Friday:

“The congressional priority should be to address the actual source of red ink: the $5.5 billion annual pre-funding albatross that is hampering the Postal Service. This mandate is not only onerous, it is unnecessary, because the Postal Service already has put aside sufficient money to meet the needs of future retirees for decades to come. Few, if any, companies can say the same.”

“The path to profitability is clear: Address the pre-funding fiasco and give the Postal Service the freedom to innovate and grow in the digital era. Do not eliminate Saturday delivery, which would raise costs for small businesses open weekends, and do not force people to traipse around their neighborhood looking for cluster boxes. Such steps would inconvenience the public and would destroy the Postal Service by driving mail—and revenue—out of the system.”

It appears that Senator  Carper and Senator Coburn  are being influenced by FedEx and UPS who would capitalize on a dismantled Postal Service. The facts paint the picture: Since Carper’s reelection nine months ago he has received $30,000 from FedEx and 26,500 from UPS .  His next election is over 5 years away! Why the sudden interest? In January, Carper assumed the powerful chairmanship of the Homeland Security and Government Affairs Committee. He became a powerful man in the Senate regarding Postal Affairs.

The ranking member of that committee is Senator Coburn (R-OK). Coburn infamously introduced an amendment in Postal Bill S1789 last year that created quite a buzz. Amazingly it would “require the Postal Service to dismiss its workers who are retirement eligible in order to cut costs”  It is unknown if Coburn will reintroduce this amendment in S1746.

Colburn introduced with Carper the Postal Reform Act of 2013 (S1746) he has also been the recipient of $25,000 from FedEx this calendar year. Placing FedEx in the top five of his donors. Coburn , it can be argued, owes his political career to ALEC founder the Koch Brothers

FedEx and UPS are members of the American Legislative Exchange Council (ALEC)  and both companies have held the vice-chair position on this insidious anti worker and union busting group. FedEx and UPS have donated enormous money over the past few years to Carper and quite possibly they helped craft the new Postal Reform Act S1746.

In the House of Representatives FedEx has been an enthusiastic supporter of Issa’s draconian HR 2748. In the past a Democratic controlled Senate would be the voice of reason and push back against the extreme right-wing ideologues of the House. That does not seem to be the case at this time as Carper is adding fuel to their witch hunt.

The Postal Service is  governments most popular and efficient agency and its being dismantled for pure ideology and greed. Fed Ex,UPS and other ALEC members will profit immensely by the privatizing of the Postal Service and the destruction of their unions.

 

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About Bill Brickley

Bill is a member of the National Association of Letter Carriers, serving on the NH Letter Carrier Executive Board as CD1 Legislative Liaison. Also serves on the NH AFL-CIO Executive Board. Former NH Area Coordinator Amnesty International and NH Labor News Blogger Follow him on twitter @BillBrickley
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