News Update :

US Postal Service posts new round of financial losses

Friday, May 11, 2012

The U.S. Postal Service, on Thursday reported a loss of $ 3.2 billion for the first quarter of 2012, $ 1 billion more than during the same period last year.

Postal officials, who provided a record $ 14 billion loss at the end of the year, the bad financial news used to increase pressure on Congress to pass legislation to reduce the agency costs of efforts to move forward.
"We are actively seeking new revenue and reduce costs in areas within our control," Postmaster General Patrick Donahoe said in a statement. "These actions are not sufficient to return the postal service to profitability."

The Postal Service continues to be affected by the decline in mail volumes and mandates that pre-pay in a health fund for retirees. The agency is seeking authorization from Congress to eliminate Saturday service and reduce health costs and labor. The Senate in April passed a law that would allow an infusion of $ 11 billion in cash, but to delay the passage of five days of service.

A more aggressive cost-cutting measure is currently in the House.
To placate legislators representing rural areas, postal services, announced Wednesday that they abandon plans to close thousands of rural post offices. Under a new strategy, the hours would be reduced to 13,000 rural post offices.
Share this Article on :

No comments:

Post a Comment

You may like this


© Copyright Global News 2010 -2011 | Design by Thaha Naleem | Published by Magazine Templates | Powered by