Every quarterly and annual report for the past several years has repeatedly shown that the US Postal Service is failing rapidly. They simply cannot meet their obligations with continued falling revenues. Raising postal rates doesn't help, that just causes a proportionate number of more people to stop using the Post Office.
The bottom line, reduced rate junk mail has not and will not sustain the Post Office, neither will the continued expenses the Postal Service is paying in wages and benefits according to their union contracts. If there ever was a grandiose example of the failure of unions in America and what they truly cost the consumer, then the USPS unions should be that poster child.
The simple reality is that with continued diminished use of the USPS and the ever increasing employee wage contracts and benefits costs, the colossal collapse of USPS is only a matter of when not if. And that when is here.
The U.S. Postal Service said its net loss last year widened to $15.9 billion, more than the $15 billion it had projected, as mail volume continued to drop, falling 5 percent.
Without action by Congress, the service will run out of cash on Oct. 15, 2013, after it makes a required workers compensation payment to the U.S. Labor Department and before revenue typically jumps with holiday-season mailing, Chief Financial Officer Joe Corbett said today.
The service, whose fiscal year ends Sept. 30, lost $5.1 billion a year earlier. It announced the 2012 net loss at a meeting at its Washington headquarters.
“We are walking a financial tightrope,” Postmaster General Patrick Donahoe said at the meeting. “Will we ever stop delivering the mail? It will never happen. We are simply too important to the economy and the flow of commerce.”