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Post Office System May Shut Down Entirely This Winter
I heard on HLN this morning that if the postal service doesn't get control of their finances they could stop delivering mail this winter. Anybody else heard anything about it? I hope they don't. They said they were really in debt and not making enough to stay in business.
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09-05-2011 06:44 AM
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They're having money troubles, but I seriously doubt it will all come to an end this winter.
I know they're closing a bunch of post offices..........maybe that's what they meant. That those particular offices are closing this winter??
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The mews woman said the postal service itself would shut down if they didn't come up with more money. She said they were something like 80 million in debt. She said they had talked about delivering mail one day less and laying people off and shutting down post offices but they're stilll way in debt. And if something didn't change they could stop delivering mail this winter.
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I just googled it, and a bunch of stories about it just popped up. This is all new to me, but sounds like what you're saying is correct.
Here's one article.
http://www.patriotupdate.com/11782/p...ly-this-winter
The United States Postal Service has long lived on the financial edge, but it has never been as close to the precipice as it is today: the agency is so low on cash that it will not be able to make a $5.5 billion payment due this month and may have to shut down entirely this winter unless Congress takes emergency action to stabilize its finances.
“Our situation is extremely serious,” the postmaster general, Patrick R. Donahoe, said in an interview. “If Congress doesn’t act, we will default.”
In recent weeks, Mr. Donahoe has been pushing a series of painful cost-cutting measures to erase the agency’s deficit, which will reach $9.2 billion this fiscal year. They include eliminating Saturday mail delivery, closing up to 3,700 postal locations and laying off 120,000 workers — nearly one-fifth of the agency’s work force — despite a no-layoffs clause in the unions’ contracts.
Decades of contractual promises made to unionized workers, including no-layoff clauses, are increasing the post office’s costs. Labor represents 80 percent of the agency’s expenses, compared with 53 percent at United Parcel Service and 32 percent at FedEx, its two biggest private competitors. Postal workers also receive more generous health benefits than most other federal employees.
(I'm going to move this thread to the News forum)
Last edited by 3lilpigs; 09-05-2011 at 07:20 AM.
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and may have to shut down entirely this winter
Isn't the fall/winter it's busiest (money making) season?
Mrs Pepperpot is a lady who always copes with the tricky situations that she finds herself in....
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You would think the Christmas season would help them make a lot of maney. Man this country is going downhill lately.
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Originally Posted by
pepperpot
Isn't the fall/winter it's busiest (money making) season?
I would think so.
This is just mind boggling though if you really think about it. If you think we have a high unemployment rate now, just imagine what will happen if the entire postal service shuts down!! We're not talking just those that work in your local office, but truck drivers as well.
And what about companies that depend on the mail? Take Hallmark for example. How are people suppose to MAIL cards? Yes, I realize people send those 'e-card's now, but still.......you go in a Hallmark store the day before Mothers Day or Christmas, and look how many people are standing in line with MAILABLE cards in their hands!
Hallmark would have to lay off people too.
And all those magazines you get in the mail? (junk, or subscribed). Either they're going to stop sending them (causing more layoffs), or you're going to pay out the butt for FedEx or UPS to deliver them from now on.
It's just going to have a HUGE domino effect! (IMO)
(Oh, and you can kiss your FREE SAMPLES good-bye too! :O )
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Well they need to shut down since the union refuses to let them trim the dead weight and become financially viable. Bust the union and get rid of the dead weight and the postal system will survive - keep the union and it will shut down just like the car industry would/should have done without the bailouts.
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Maybe if the government does something with their unions where they can lay off people or cut wages that will help but I doubt the union will let them.
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If this does happen, get ready to pay out the a$$ this Christmas season for shipping packages.
I can almost guarantee you that FedEx and UPS will jack up their prices if the postal system shuts down.
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Its scary when services you thought were fail proof start talking about shutting down.
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