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Search Tags: Pat Donahoe
Postmaster General Pat Donahoe told the House Oversight and Government Reform Committee Wednesday that the Postal Service is operating under a "broken business model." But cost-saving efforts, such as ending Saturday delivery and modifying a multibillion dollar requirement to prefund future retirees health care costs, garnered little agreement among lawmakers.
The U.S. Postal Service's worsening financial situation led Postmaster General Pat Donahoe to announce last week the agency would end Saturday mail delivery beginning in August. But lawmakers on the Senate Homeland Security and Governmental Affairs Committee were divided over Donahoe's announcement. The postmaster general told the committee during a hearing Wednesday the decision was necessary to save $2 billion a year and to begin shoring up the service's funding shortfalls.
Tags: Congress , House , Senate , budget , USPS , Saturday delivery , Mark Pryor , Tom Carper , Darrell Issa , Elijah Cummings , Tom Coburn , Senate Homeland Security and Governmental Affairs Committee
To avoid lay-offs, this week the mail agency offered early retirements to more than 3,300 employees who will retire Dec. 31, 2012.
The U.S. Postal Service and the two major Postal unions have agreed to extend the deadline for negotiating a new labor contract until Dec. 16. It is now the second extension agreed to by USPS and the two unions — the National Association of Letter Carriers and the National Postal Mail Handlers Union. The initial deadline for labor negotiations was Nov. 20, which was then extended until midnight Wednesday.
None of the legislation moving through Congress would provide the Postal Service the speed and flexibility it needs to cut annual costs by $20 billion, Postmaster General Pat Donahoe said Monday. He said they would give USPS "a couple of years of profitability and at least many decades of steep losses." He argued for quicker resolution to the agency's cash crisis.
Without action from Congress, the U.S. Postal Service will default on its obligations to future retirees' health care accounts. Next up are payments to employees and vendors, the postmaster general told Congress Tuesday.
Postmaster General Pat Donahoe said he's ready to announce more RIFs and without legislative help USPS will face insolvency this year. Sen. Susan Collins introduced a bill to help solve some of the challenges the Postal Services faces.
Tags: management , pay and benefits , Susan Collins , Stephen Lynch , Darrell Issa , Dennis Ross , USPS , Senate Homeland Security and Governmental Affairs , House Oversight and Government Reform Committee , FERS , CSRS , budget , Jason Miller
Donahoe says the decisions to close Saturday and Wednesday was a tough one, but they need to take the safety of their employees into consideration.