USPS Rate increases

[Lawson Cox]

We should all be glad that we don't get all of the government e pay for. UGH

[Kube]

Originally Posted by Fibber Mcgee

I think they can do it cheaper because they don't have to make a profit. They operated at a 5.5 billion dollar loss in 2014.

That's not entirely true. You must take in to account the US government has been "robbing" the postal service for years upon years. Also, the Us government won;t allow the postal service to decrease the number of days it delivers mail even though most folks really could care less. this is after the US postmaster general told Congress last year if they continued to operate as they are now, they will lose billions.
If the postal service was left alone, it would work just fine...

[mrtexas]

Originally Posted by Fibber Mcgee

I think they can do it cheaper because they don't have to make a profit. They operated at a 5.5 billion dollar loss in 2014.

Umm, the discipline to make a profit usually results in more attention to expenses and lower prices. IMHO the cost of profit is usually way less than the cost of government inefficiency.

[uncle buck]

Originally Posted by mrtexas

Umm, the discipline to make a profit usually results in more attention to expenses and lower prices. IMHO the cost of profit is usually way less than the cost of government inefficiency.

Ain't that the truth

[bergie]

Flatford39 made the comment but let me expand on it a bit. Most of us wouldn't know that Congress is making a concerted effort to privatize the USPS by making it appear unprofitable. A few years ago, congress mandated that the USPS pre-fund their retirement for the next 75 years. And the post office had to bankroll that funding in ten years. Thus, the USPS has been setting aside approximately 5 billion dollars each year above operating costs for several years now and has several years to go. No other company in America has to pre-fund to this level. This is totally a ploy by a few Congressmen that have sold their soul to lobbyists. I didn't do a lot of research to post this response because I wanted to get it posted before everyone moved on. I didn't have to do much research because I have been living it as a postal employee. As for Fibber McGee's input about operating at a loss of 5.5 billion in 2014, I believe the USPS contributed 5.7 billion to the retirement funds in 2014(I am going on memory here). If it weren't for the onerous retirement fund mandate it seems to me the USPS operated about even with less personnel and many more addresses to deliver to.

[petehoovie]

Sponsored Links (Register now to hide all advertisements)

The USPS is unionized. Even though postal operations have become more automated, labor still accounts for 80 percent of the USPS’s costs - wages, benefits and perks. The USPS has been able to eliminate thousands of positions through attrition, but it still possesses the second-largest civilian workforce in the country, behind only Wal-Mart. With 85 percent of that workforce protected by collective bargaining agreement, the unions have become a giant anchor on an already sinking ship.

Union demands plus government mandates is a toxic combination to fiscal efficiency - fiscal responsibility....

[tubman]

And yet, with all that, if you disregard the onerous pension funding situation, they operate efficiently enough so that both UPS and FedEx use them for final delivery to save money.

[flatford39]

Originally Posted by bergie

Flatford39 made the comment but let me expand on it a bit. Most of us wouldn't know that Congress is making a concerted effort to privatize the USPS by making it appear unprofitable. A few years ago, congress mandated that the USPS pre-fund their retirement for the next 75 years. And the post office had to bankroll that funding in ten years. Thus, the USPS has been setting aside approximately 5 billion dollars each year above operating costs for several years now and has several years to go. No other company in America has to pre-fund to this level. This is totally a ploy by a few Congressmen that have sold their soul to lobbyists. I didn't do a lot of research to post this response because I wanted to get it posted before everyone moved on. I didn't have to do much research because I have been living it as a postal employee. As for Fibber McGee's input about operating at a loss of 5.5 billion in 2014, I believe the USPS contributed 5.7 billion to the retirement funds in 2014(I am going on memory here). If it weren't for the onerous retirement fund mandate it seems to me the USPS operated about even with less personnel and many more addresses to deliver to.

Very well stated and it is what is exactly going on with the USPS. It is a ploy to make them look like a financial drain on the economy so it can be privatized.

Once it is privatized you will see wages slashed and postage rates will quadruple. Privatization will become an enormous drain on the US economy.

[Fibber Mcgee]

I work for FedEx and ironically my dad worked for the US Postal Service for 35 years and my point was , everything FedEx does they do with profit in mind (they WON'T do something unless it involves profit now or down the road) our raises vary depending on the profitability of the company. The USPS being run by the government does not need (or as some said want)to be profitable. I'm not trashing the post office (my dad would frown on that) but we all know the government will spend $2 to make $1 and as flatford39 said if it was completely private rates would quadruple and wages would go down.

[flatford39]

Originally Posted by Fibber Mcgee

I work for FedEx and ironically my dad worked for the US Postal Service for 35 years and my point was , everything FedEx does they do with profit in mind (they WON'T do something unless it involves profit now or down the road) our raises vary depending on the profitability of the company. The USPS being run by the government does not need (or as some said want)to be profitable. I'm not trashing the post office (my dad would frown on that) but we all know the government will spend $2 to make $1 and as flatford39 said if it was completely private rates would quadruple and wages would go down.

Your right they have to spend $2.00 to make $1.00 because of the ridiculous law that was passed that makes them pay their pensions 75 years in advance. It's remarkable to me that they can do it and they have been doing it to the chagrine of the privateers.

No other company in the USA has to operate under these guidelines.

[petehoovie]

Given governments inherent incompetence, corruptness and wastefulness, how can wanting even more of it be 'progressive'?....

[flatford39]

Originally Posted by petehoovie

Given governments inherent incompetence, corruptness and wastefulness, how can wanting even more of it be 'progressive'?....

I'll give you the corruptness and wastefulness angle to a degree but as far as incompetence....no I won't give you that. Medicare and Social security (both are government run programs) are very good programs that need to be enhanced somewhat and not despised as some free entitlement. They are both earned benefits that you have paid for.

[Barry-ct]

UPS goes up this coming Sunday. The American business motto is " Too much profit is not enough". And that profit is even more with an increase.

[tubman]

I spend a lot of time on various car forums, and this thread gives me a little hope.

[35fordtn]

Speaking of shipping increases, I ordered a 35 radiator cap from one of the big reproduction places (won't name names) cap weighed 3oz. Shipping charges were 21.88

[petehoovie]

Originally Posted by flatford39

I'll give you the corruptness and wastefulness angle to a degree but as far as incompetence....no I won't give you that. Medicare and Social security (both are government run programs) are very good programs that need to be enhanced somewhat and not despised as some free entitlement. They are both earned benefits that you have paid for.

Too bad both of these 'competently' run programs so impact our $20 Trillion federal debt....

[tubman]

Originally Posted by 35fordtn

Speaking of shipping increases, I ordered a 35 radiator cap from one of the big reproduction places (won't name names) cap weighed 3oz. Shipping charges were 21.88

And the shipper is? You might want to "name names" so the rest of us can avoid this type of thing.

[JSeery]

I tend to not purchase items unless they come with free shipping, and I purchase online a lot. These companies must be getting huge discounts on their shipping cost if they can include the shipping in the purchase price. I can order a fairly small item in the under $10 range with free shipping and it will show up in a large box delivered by UPS. I have no idea how they can do that.

[petehoovie]

Originally Posted by tubman

And yet, with all that, if you disregard the onerous pension funding situation, they operate efficiently enough so that both UPS and FedEx use them for final delivery to save money.

According to the laws under which it now operates, the U.S. Postal Service is a semi-independent federal agency, mandated to be revenue-neutral. That is, it is supposed to break even, not make a profit. Unlike other private businesses, the Postal Service has very enviable PERKS. It is exempt from paying federal taxes. USPS can borrow at discounted rates, and can condemn and acquire private property under governmental rights of eminent domain. Consider if UPS or FedEx had these same perks. No wonder they both use the Postal Service for final delivery of their small items....

[willowbilly3]

Originally Posted by flatford39

No shit...but what I have found is that the most vocal about the USPS aren't even registered to vote or don't vote in midterms etc...etc... but that is all discussion for another forum.

I find it odd you would know other people's voting habits. Does it generally come up in conversation? I very little idea who among my acquaintances is not registered.