Postal Service asks Congress for permission to eliminate 220K jobs, fix benefits payments
It's the third time the payment has been missed.
The US Postal Service has asked Congress to allow it to cut about 220,000 positions by 2015, bringing its total workforce to 425,000. The move would decrease the USPS' employee costs by 30%, the Postal Service said.
“Despite all of the efforts to reduce costs that have been undertaken or that are underway, it is clear that they will not be enough to return the Postal Service to financial stability. As we continue to review our volume, revenue and financial projections for fiscal years 2012 through 2015, it has become apparent that our financial situation is becoming even more precarious,” the USPS said in a white paper with its Congressional requests. “Therefore, it is clear that we must reduce costs at an accelerated pace.”
For the USPS to do so, Congress must eliminate layoff protections in its collective-bargaining agreements. The Postal Service said in a statement that it realizes the request is “an extraordinary request…however, exceptional circumstances require exceptional remedies.”
The Postal Service also said it will ask Congress to resolve its retiree health benefits pre-funding requirement, repay its calculated overfunding of $6.9 billion, eliminate the six-day home delivery requirement, and allow it to make business decisions more quickly.