Postal Service Facing Default

[jimmy olsen]

Another 120,000 people unemployed, that's just what the country needs right now.

http://www.foxnews.com/politics/2011/09/05/postal-service-facing-default-shut-down-without-congressional-intervention/

Postal Service Facing Default, Shutdown Without Congressional Intervention

Published September 05, 2011

AP

Postal Service mailboxes are seen awaiting disposal Sept. 1 in San Jose, Calif.

The head of the U.S. Postal Service said in an interview that the organization will default -- perhaps as early as this winter -- unless Congress intervenes.

Postmaster General Patrick Donahoe's comments reflect a well-known reality that the Postal Service is in dire financial straits. The rise of email and online bill-paying has steadily eroded its profits over the years while labor costs soar. Donahoe is calling for a host of changes, including the elimination of Saturday delivery, to close a deficit projected to top $9 billion this year.

But he said Congress needs to step in to help keep the service alive.

"Our situation is extremely serious," he told The New York Times. "If Congress doesn't act, we will default."

According to The New York Times, the service will be unable to make a $5.5 billion retiree health care payment later this month and is expected to run out of money to pay workers and other expenses early next year. This could force a shutdown in delivery.

Averting that outcome doesn't necessarily mean a bailout. One thing the service wants from Congress is a law to effectively nullify a contract prohibition on layoffs -- part of Donahoe's plan involves laying off 120,000 workers, but he needs Congress' help.

Some in Congress are also looking at letting the organization recover billions in supposedly overpaid pension payments.

[The Brain]

Ah, the Third World.

[Zanza]

Creative destruction at work.

I wonder why the USA hasn't long privatized the postal service.

[The Brain]

I checked out PostNord, the Swedish equivalent. Note that this also includes Danish crap that reduce profits.

Summary of Results
April-June 2011
 Net sales totaled SEK 9,711m (10,231), down 2% excluding
currency changes
 Operating profit totaled SEK 211m (261), down 12% excluding
structural and currency changes
 Profit before tax totaled SEK 246m (254)
 Net profit totaled SEK 154m (185)
 Return on equity, rolling 12-month, was 8 (3) %1
 Equity-assets ratio was 46 (43) % at the end of the period
 Signing of agreements to acquire logistics companies Eek
Transport and Nils Hansson Logistics
 Cost savings program to reduce administrative costs by
approximately SEK 1 bn, and adjustments to group management
structure


1 Excluding capital gain of SEK 2,002m from the sale of Post
Danmark A/S's shares in the Belgian bpost (formerly De Post-La
Poste) in July 2009.

Edit: http://www.postnord.com/en/About-Us/Investor-Relations/

[Razgovory]

Creative destruction at work.

I wonder why the USA hasn't long privatized the postal service.

It kinda has.  It get subsidies to delivery mail to people like Katmai, but otherwise it's run like a corporation.

[Zanza]

It kinda has.  It get subsidies to delivery mail to people like Katmai, but otherwise it's run like a corporation.

Its need for law change to fire someone and the CEO being called "Postmaster General" and its board being appointed by the US president and the fact that it is 100% state-owned doesn't make it sound very privatized. It seems to operate under public not private law too.

[Mr.Penguin]

I checked out PostNord, the Swedish equivalent. Note that this also includes Danish crap that reduce profits.

Summary of Results
April-June 2011
 Net sales totaled SEK 9,711m (10,231), down 2% excluding
currency changes
 Operating profit totaled SEK 211m (261), down 12% excluding
structural and currency changes
 Profit before tax totaled SEK 246m (254)
 Net profit totaled SEK 154m (185)
 Return on equity, rolling 12-month, was 8 (3) %1
 Equity-assets ratio was 46 (43) % at the end of the period
 Signing of agreements to acquire logistics companies Eek
Transport and Nils Hansson Logistics
 Cost savings program to reduce administrative costs by
approximately SEK 1 bn, and adjustments to group management
structure


1 Excluding capital gain of SEK 2,002m from the sale of Post
Danmark A/S's shares in the Belgian bpost (formerly De Post-La
Poste) in July 2009.

Edit: http://www.postnord.com/en/About-Us/Investor-Relations/

The poor Danish numbers is a result of the fact that the danish economy has been close going into resection for the last 2 years. Despite the economy is improving (are still under 1%), do our domestic spending keep falling and as a direct result hurting the profit of Post Danmark...

But unlike the US Postal Service have we problem reducing the number of employees. Last month did we on my post office alone reduce the number of full time positions by 4...   

[CountDeMoney]

Hey, I do my part, writing letters, buying stamps.  The rest of you faggots need to pull your share.

[Ancient Demon]

Another 120,000 people unemployed, that's just what the country needs right now.

Better that than they be kept in high paying but redundant jobs. They will cost the government less as unemployed.

[Neil]

Hey, I do my part, writing letters, buying stamps.  The rest of you faggots need to pull your share.

Why bother?  That's like typing with a typewriter.

[Razgovory]

It kinda has.  It get subsidies to delivery mail to people like Katmai, but otherwise it's run like a corporation.

Its need for law change to fire someone and the CEO being called "Postmaster General" and its board being appointed by the US president and the fact that it is 100% state-owned doesn't make it sound very privatized. It seems to operate under public not private law too.

We need someone to lead the postmen into battle, hence the title.

[CountDeMoney]

Hey, I do my part, writing letters, buying stamps.  The rest of you faggots need to pull your share.

Why bother?  That's like typing with a typewriter.

Which is why I have three.  Go play with your iWhatever, and bitch when your hard drive crashes.

[viper37]

the price of stamps could be increased.  At 0,44$, it's pretty cheap.

[Neil]

Hey, I do my part, writing letters, buying stamps.  The rest of you faggots need to pull your share.

Why bother?  That's like typing with a typewriter.

Which is why I have three.  Go play with your iWhatever, and bitch when your hard drive crashes.

Why would a harddrive crash?

Writing on a typewriter is barbaric.

[CountDeMoney]

Writing on a typewriter is barbaric.

Nonsense.