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Postal Service to Slash Costs, Employees

The United States Postal Service is planning to cut 220,000 jobs, or about a third of its workforce, between now and 2015. In other cost-cutting moves, it also wants to set up its own health benefit plan, speed up planned post office closures, stop offering pensions to new hires, and reduce retirement benefits for existing employees not currently nearing retirement age.

About 100,000 of the planned cuts will come through attrition, with employees retiring or leaving the Postal Service not being replaced. But the bulk of the jobs eliminated are expected to come through layoffs. At the end of the purge, 425,000 employees will remain on staff.

The Postal Service is essentially bankrupt, running large deficits for the last several years as traditional mail circulation continues to drop. "If we were a private company, we already would have filed for bankruptcy and gone through restructuring — much like major automakers did two years ago," said a Postal Service spokesperson.

One thing that may stand in the way of plans – under collective bargaining agreements with postal unions, layoffs are not allowed under any circumstances. The Postal Service is now turning to Congress and asking for legislation removing the protections afforded postal employees through their union contracts.

"The Congress of the United States does not engage in contract negotiations with unions and we do not believe they are about to do so," said Fredric Rolando, president of the National Association of Letter Carriers in a statement critical of the Postal Service’s announcement.

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The United States Postal Service is planning to cut 220,000 jobs, or about a third of its workforce, between now and 2015. In other cost-cutting moves, it also wants to set up its own health benefit plan, speed up planned post office closures, stop offering pensions to new hires, and reduce retirement benefits for existing employees not currently nearing retirement age.

About 100,000 of the planned cuts will come through attrition, with employees retiring or leaving the Postal Service not being replaced. But the bulk of the jobs eliminated are expected to come through layoffs. At the end of the purge, 425,000 employees will remain on staff.

The Postal Service is essentially bankrupt, running large deficits for the last several years as traditional mail circulation continues to drop. "If we were a private company, we already would have filed for bankruptcy and gone through restructuring — much like major automakers did two years ago," said a Postal Service spokesperson.

One thing that may stand in the way of plans – under collective bargaining agreements with postal unions, layoffs are not allowed under any circumstances. The Postal Service is now turning to Congress and asking for legislation removing the protections afforded postal employees through their union contracts.

"The Congress of the United States does not engage in contract negotiations with unions and we do not believe they are about to do so," said Fredric Rolando, president of the National Association of Letter Carriers in a statement critical of the Postal Service’s announcement.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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