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And if they do, will there be layoffs? The Government needs to get rid of some bloat in their work force.
http://www.federaltimes.com/index.php?S=3922342Postal Service seeks end to Saturday delivery requirement
January 28, 2009
Top U.S. Postal Service officials Wednesday afternoon are expected to ask legislators to remove the Saturday delivery requirement.
Sources say Postmaster General John Potter will make that request in his opening statement to a Senate subcommittee.
The Postal Service isn?t looking to immediately drop Saturday delivery; it will likely study the issue first. And it could take a lesser action, such as temporarily suspending Saturday delivery during periods of low mail volume.
A 1980 report found that ending Saturday delivery would save about $1 billion annually. That?s about $2.5 billion in inflation-adjusted dollars, and experts say that estimate still might be low because of today?s higher fuel costs and the larger delivery network.
Potter ? who will testify alongside Dan Blair, chairman of the Postal Regulatory Commission ?also is expected to field questions about the Postal Service?s deteriorating fiscal condition. It lost $2.8 billion last year, and mail volumes continue to decline.
Senators likely will ask about rumors circulating among postal workers and supervisors that the Postal Service will have trouble meeting its payroll this year.
One of the biggest problems is a postal reform law passed by Congress two years ago that requires the Postal Service to fully fund its retiree health care accounts within 10 years. That means the Postal Service owes $7.7 billion this fiscal year toward health benefits. Most of the money, $5.4 billion, goes into a trust fund that?s used to pay future benefits; the other $2.3 billion pays the Postal Service?s contribution toward insurance premiums for current retirees.
The Postal Service asked Congress in November to suspend that requirement. It wants to waive the $2.3 billion contribution and pay this year?s health care premiums out of the trust fund ? a short-term savings, but one that leaves potential risk for future retirees.
Rep. John McHugh, R-N.Y., introduced a bill, HR 22, that would give the Postal Service that option. It was referred to the House Oversight and Government Reform Committee, which oversees the Postal Service, but the committee has taken no action on the bill.
