In the wake of the USPS’ case for an $85 billion bailout being
shot down by the GAO, the USPS mail carriers’ union, the National
Association of Letter Carriers, announced that it was
hiring Ron Bloom. Bloom is a former Obama Administration
official who, in his capacity as “Assistant to the President for
Manufacturing Policy,” helped engineer the restructuring and
bailout of General Motors.
The Wall Street Journal notes that this is a sign that the
postal workers union is going on the offensive against plans to cut
funding and jobs as the USPS becomes less and less profitable.
The hiring of Lazard and Mr. Bloom indicates that rather than
absorbing the massive job and infrastructure cuts being proposed by
the postal service, the union is aiming instead for a role in the
public-policy debate over how to prevent the collapse of the
age-old institution and remake its business model for modern
America.
The letter carriers say they have no choice but to go on the
offensive. As part of its strategy to right itself, the postal
service is aiming to slash $20 billion in expenses by 2015 by
closing many post offices and mail-sorting centers, dropping
Saturday delivery and eliminating 220,000 jobs, despite
collective-bargaining agreements limiting layoffs. The agency is
appealing to Congress to change laws so it can rapidly make these
cuts.
While the USPS isn’t technically a government agency, it faces a
lot of similar problems. And their workers’ union faces a lot of
the same problems and the same incentives. It’s not an imminent
battle, but the future of the USPS is probably going to be costly
for taxpayers.
PCC| 10.17.11 @ 7:58PM
The USPS is a dinosaur in the age of email and express delivery. Taxpayer funding should be cut off and the service should sink or swim on its own.
alan| 10.18.11 @ 10:20AM
PCC. Just to set the record straight on this article and your comment, USPS is not looking for a "tax payer bailout" it is seekin 87 bil. worth of refunds they have overpaid into several accounts for future retirees. Also to your post, the USPS doesn't recieve one red cent from tax payers and operates solely on revenues it generates on it's own. USPS is also constrained by regulation from operating competively in a competive market and it's competetors actually have a say in what USPS can charge for services and what ones they can or cannot offer.
PattyMor| 10.18.11 @ 4:15PM
The bailout plans are to keep union workers in the fold. Its a perfect circle. The Democrats rescue the Unions and the Union Dues elect Democrats. A match made in Leftist heaven (so to speak).
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