Postal Service Seeks Exit From Union Deal to Prune 220,000 Jobs

Bloomberg

The U.S. Postal Service, which predicts a loss this year of as much as $9 billion, may seek to break union contracts so it can slash 220,000 jobs by 2015 and withdraw from federal health-benefit and retirement programs, according to draft proposals.

The collective bargaining agreements that prevent mass firings are keeping the service from reducing its workforce “as quickly as is now clearly needed,” the agency wrote in a draft document. The Postal Service has about 560,000 full-time, non- contract workers. Retirement and voluntary departures would only account for 100,000 jobs, the service estimated.

The Washington-based service last week said it may be forced to ask Congress to raise its $15 billion debt limit unless lawmakers allow it to delay a required payment for future retirees’ health benefits and make changes like stopping Saturday deliveries or closing more post offices.

That's about 40 to 50 thousands jobs a year. Worse, it may also asked congress to raise the debt ceiling yet again, so it could pay its future retiree. This, in my opinion is a sign of the start of bankruptcy, hence the agressive move. America is indeed broke and has to end its social welfare program immediately.

If we end the social welfare program, how will the minimum wage earners and layoff/jobless survive? Where will they live, how will they eat? There are lots of people out there who want a job but can't find one. Food stamps and medicaid are necessary for survival.

But, if we could somehow differentiate those individuals from the ones bleeding the system dry just because they can, that would be a start.

Originally posted by tinker9917
But, if we could somehow differentiate those individuals from the ones bleeding the system dry just because they can, that would be a start.

Good idea, but just a while ago, I was looking around ATS, and I have this sinking feeling that the current model of capitalism will eventually implode. I guess it just won't matter then, it'll be economic apocalypse first before reformation.

Originally posted by tinker9917
If we end the social welfare program, how will the minimum wage earners and layoff/jobless survive? Where will they live, how will they eat? There are lots of people out there who want a job but can't find one. Food stamps and medicaid are necessary for survival.

The solution would require systemic changes. Frankly, our government is not nimble enough to respond, due in part to the number of people demanding we maintain the current system of handouts, even while we invent a different one.

1. We'd need a lot more new jobs, for the unemployed to take.

2. To get the jobs, we'd have to change the entire business climate. Fostering the giant corporations to expand has not worked, despite THREE stimulus packages (1 by Bush, 2 by Obama).

3. The only way to grow jobs in time to save people is to make it much easier to start your own SMALL business.

4. On the local and the state level, tax-free development zones are a proven strategy. Lord knows that there are enough abandoned strip malls and office parks to begin this process instantly---and fill up commercial vacancies to boot.

5. On the national level, waive corporate income taxes on small corporations for as long as the average recession lasts: 5 years.

6. Waive the non-tax burdens on small business as well: simplify HR laws, Filing requirements, etc.

7. Re-institute the Glass Steagall Act so that banks can only make money by loaning it out, and not by playing the markets directly.

8. Cut government spending on programs other than defense, social security, and enforcement---to make up for the income shortfalls that would be the temporary result of the above acts.

But, if we could somehow differentiate those individuals from the ones bleeding the system dry just because they can, that would be a start.

If our institutions could follow the steps I've outlined, then the amount of welfare fraud would matter a lot less.