U.S. Postmaster General Louis DeJoy promised Congress not to close small or rural post offices as part of planned cost-cutting measures to help the financially floundering U.S. Postal Service.
However, DeJoy acknowledged that there are still "extreme delays" in some mail deliveries and said a 10-year strategic plan will revise existing service standards. "The USPS faces a $160 billion projected loss over the next decade and is looking to cut costs as it faces shrinking first-class mail volumes, DeJoy told a hearing of the House of Representatives Appropriations subcommittee," David Shepardson reports for Reuters. "The reorganization would keep existing six-day delivery and would not close rural or small post offices. But he acknowledged service standards will be relaxed as part of the plan. ... The USPS faces shrinking volumes of first-class mail, increased costs of employee compensation and benefits, and higher unfunded liabilities."
Specifically, the Postal Service reported net losses of $86.7 billion from 2007 through 2020. One reason is 2006 legislation mandating that it pre-fund more than $120 billion in retiree health care and pension liabilities, a requirement labor unions have called an unfair burden not shared by other businesses," Shepardson reports. "Draft House legislation in circulation includes eliminating a requirement to pre-fund retiree health benefits and have employees enroll in government-retiree health plan Medicare for a saving of $40 billion to $50 billion over 10 years."
from The Rural Blog https://ift.tt/3ewwMqi Postmaster General promises not to close rural post offices as part of broader cost-cutting measures - Entrepreneur Generations
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