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Unions Killing U.S. Post Office

April 19, 2010
Warner Todd Huston
4/17/2010

Union contracts are killing the U.S. Post Office, making it uncompetitive and driving costs through the roof according to the Government Accountability Office.

The U.S. Post Office lost $12 billion between 2007 and 2009 and has reached its borrowing limit of $15 billion already. On top of that the union pension fund is underfunded. Even as Congress cut benefits by $4 billion the agency faces a $3.8 billion loss.

The GAO report also states that one of the reasons why the Post Office has lost so much cash is because it doesn’t have the freedom to close fiscally inefficient offices. Politicians have stepped in and prevented a logical, financial sensible reassessment of the Post Office’s operations.

But it is union contracts that prevent the proper rearrangement of the work force to reflect the financial situation that faces today’s Post Office.

The story continues …..

One Comment leave one →
  1. Ross Wolf permalink
    April 19, 2010 5:16 pm

    Taxpayers should not be forced to subsidize U.S. Post Office “Union salaries” especially when no one is subsidizing non-union salaries. Imagine how taxpayers might be held hostage by unions in the health care industry if the health bill stands.

    Years ago I remember news stories about the mafia being involved in unions, did that all go away?

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