First Class Failure

The United States Postal Service is a study in failure and is closer than ever to defaulting. The Postal Service is warning that without a government bailout (read, using taxpayer money to cover losses) it will default and could stop mail delivery completely.

The USPS has seen a steady decline in the amount of mail it moves because of the Internet. People use email for instant communication which means there are fewer letters being sent. Couple this with the advent of electronic cards, online bill paying, and the ability to browse catalogs online and it spells disaster for an agency that depends on moving mail to make money.

There are plenty of problems at the USPS and one is the generous benefits package that its 600,000 employees enjoy. Postal Union employees not only enjoy more generous benefits than their counterparts in other government agencies, they also have a provision in their contract that does not allow them to be laid off. No matter what the volume of mail is, Postal workers still get paid. About 80% of the USPS’s costs are for labor which is well above the private sector companies UPS and FedEx.

The government needs to contract out the delivery of mail. This constant bailout of the USPS is a drain on the budget and it will only get worse as more and more communications are completed electronically. It is time to rethink the benefits package and the number of employees needed to handle the job. While the USPS might not be able to lay off employees, it can let them go as part of a reduction in force (unless that is part of the contract as well).

Reduce mail delivery to five days a week, close unneeded post offices, reduce the fleet and contract the delivery of mail to private sector companies who must work within a budget and who cannot run to the taxpayer when financial trouble hits.

If the government decides to use taxpayer dollars to bailout the USPS then that bailout must come with provisions to rework the union contract, eliminate the no lay off provisions (and any reduction in force clauses that exist) as well as reworking the benefits package that USPS employees enjoy.

There is no reason taxpayers should feel the pain of the financial problems of the USPS while postal employees continue the ride pain free.

Cave Canem!
Never surrender, never submit.
Big Dog

Gunline

[tip]If you enjoy what you read consider signing up to receive email notification of new posts. There are several options in the sidebar and I am sure you can find one that suits you. If you prefer, consider adding this site to your favorite feed reader. If you receive emails and wish to stop them follow the instructions included in the email.[/tip]

Who Is Responsible For This Financial Mess?

Barack Obama and his fellow Democrats have been putting the blame for the current financial crisis on the back of the president and the Republican Party who Democrats claim failed to address the issue. The Democrat’s parrots in the media have been shouting to anyone who will listen trying to make the accusations stick. This is a coordinated attack to take the focus off all the Democrats who have been bought and paid for by the greedy people on Wall Street. Fox News had a story and this should provide documented proof, with audio and video, as to whom the blame lies. In reality, this news story shows the efforts of the Bush Administration in trying to reign in the mortgage giants, Fannie Mae and Freddie Mac. The complete history goes back decades and involves Democratic plans that allowed people to buy things they had no hope of ever affording.

I doubt this will do any good because too many people have overdosed on the moonbat Kool Aid, but it clearly shows that there were a number of people, including President Bush, on multiple occasions who tried to reign in Fannie and Freddie. Pay attention to Barney Frank and see how his assessment squares with the reality we’re facing. Listen to the people who said that we were heading for trouble and see how Democratic Senator Chuck Schumer had a hand in preventing any regulation.

Then take heart in the knowledge that Nancy Pelosi assigned Barney Frank the job of fixing the problem.

How can one fix something if one does not recognize the problem?

You should also keep in mind that these are the people who want to lead you. While John McCain headed back to DC, Barack Obama prepared for a debate and fund raising (he was left with little option than to return after a call from the President).

Who puts the country first?

Riehl World View says that Palin should debate Obama while McCain is TCB in DC. Not a bad idea. Could be risky but she is not a member of Congress so she does not have to be there and Obama has no intention of staying in DC.

Big Dog