ELLSWORTH, Maine — With 30 rural Maine post offices facing potential closure and nationwide service cutbacks looming, some local postal service employees and activists are attempting to ratchet up pressure on Congress to rescind a law they insist is causing the agency’s financial woes.
But at least one member of Maine’s congressional delegation said the U.S. Postal Service will need systemic changes to survive.
The U.S. Postal Service posted a loss of $5.1 billion in 2011 as the sagging economy, email and online bill paying continued to eat into the service’s finances. In response, postal officials have proposed closing 3,600 post offices, eliminating six-days-per-week mail delivery and potentially laying off 100,000 or more postal employees. The postal service also has proposed closing the mail processing and distribution facility in Hampden, affecting 183 jobs.
Not everyone believes such drastic steps are needed to restore the postal service’s financial footing, however. Organizers of a forum held Wednesday evening in Ellsworth said Congress can take a big step toward fixing the problem by overturning a 2006 law that is costing the postal service more than $5 billion a year.
“Congress created the problem and Congress can fix it just as easily as they created it without costing taxpayers a dime,” John Curtis, a recently retired postal service employee from Ellsworth, told about 50 people gathered in City Hall for the event co-organized by Occupy Ellsworth.
The law in question requires the postal service to spend more than $5 billion a year to “prefund” the service’s health care program for retired employees for the next 75 years.
Echoing claims made by the National Association of Letter Carriers union, Curtis and other speakers accused the Republican-controlled Congress in 2006 of imposing requirements on the postal service that no other government agency faces.
Curtis and other speakers predicted the proposed cuts will have a dramatic impact on businesses that depend on timely mail delivery and will only drive more people away from the postal service to private carriers such as UPS and FedEx. The result, they warned, could be the eventual demise of government-run postal services.
Bill Reeve, who estimated that he has used the U.S. Postal Service to mail between 2,000 and 3,000 used or rare books for his business, said private companies couldn’t fill the gap.
“They do a fine job at what they do,” said Reeve. “But they don’t deliver mail to remote areas of the country, and we have a lot of remote areas here in Maine.”
The postal service has put on hold its plans to close 3,600 post offices — including 30 here in Maine — while Congress attempts to come up with its own solutions to the problem. Several bills would address the pre-funding issue to varying extents.
Sen. Susan Collins, R-Maine, is co-sponsoring a bill that would reduce the amount of prefunding by essentially spreading the payments out over additional years. The legislation, Senate Bill 1789, also would allow the postal service to reclaim $11 billion in overpayments to the federal pension system and use that money to offer employees buyouts and early retirement incentives.
The goal of that provision is to save the postal service an estimated $8 billion a year by cutting 100,000 positions, or roughly 20 percent of the total staff. But the bill also directs the postal service to explore ways to shift toward more curbside mail delivery rather than hand delivery to people’s doorsteps.
Those provisions do not sit well with postal employee unions.
But Collins, who also was a co-sponsor of the 2006 prefunding bill, said doing nothing could result in mail delivery stopping this summer because of lack of funding. Such a scenario would jeopardize a service that supports 8.7 million Americans working in mailing or mail-related industries — including 38,000 Maine workers.
“The funding of the liability for future retiree health benefits is not the reason why the Postal Service is in a financial crisis,” Collins said in a statement on Thursday. “It would still have lost billions of dollars over the last three years, even if there were no funding requirement for these future retiree health benefits.
“The Postal Service still owes $48.5 billion to cover the costs of the promises it has made to provide health care to future retirees,” Collins continued. “If the Postal Service doesn’t cover these costs, the American taxpayer could be stuck with the bill in the not-too-distant future. That liability is not going away; it has been earned by postal workers.”
Organizers of Wednesday’s forum in Ellsworth as well as the National Association of Letter Carriers, meanwhile, are urging the public to pressure House members to support another bill.
The legislation, HR 1351, would temporarily address the prefunding issue by allowing the postal service to pay off current obligations using surplus payments to the federal pension system. The bill has 228 co-sponsors, including both Maine House members, Democratic Reps. Mike Michaud and Chellie Pingree.
That bill is stalled in Congress, however, while the House considers another bill that does not address the prefunding issue but is sponsored by the chairman of the committee that oversees the postal service.
Chris Winstead, who works in Michaud’s Bangor office, urged those present on Wednesday to “let your voices be heard” by contacting both of Maine’s senators and the House committee chairman, Rep. Darrell Issa, R-California.
The post office is having financial problems, in part, because the public’s use of it has dropped off dramatically and it will continue to drop as we evolve away from needing it. But let me offer you a personal example of why they are in trouble. I’m living across town for a couple of weeks and had my mail forwarded. My mail (most of which is junk) is coming to Bangor, being sent to Boston where the post office has it’s ‘forwarding facility’ then comes back to Bangor. Your tax money paid for somebody to drive my most recent credit card flyer from Chicago to Bangor to Boston to Bangor.
Time to scale this behemoth back.
First, “junk” mail doesn’t get forwarded. Only first class or priority mail will be.
Second, No tax payer money has been used but nice try.
I will agree that what the PO calls CFS (computer forwarding system) is a joke. It use to be at the EM plant. Then went to the SM plant. Then I almost think it went to NH or something before ending up in Boston. But then again, PO management found that they could save a few bucks (employee wise) by doing all the Northeast Area in one place. So your “cut the behemouth back” comment has lead to what you received for service.
Also, Just wanted to add that I agree that volume has dropped off since the internet age. However, the volume they always discuss is first class mail. That would be those bills that people use to pay through the mail mostly. What is never mentioned is the increase in packages and how the “junk” mail (advertising) has stayed steady.
My point is that if Boston is the nearest facility with the ability to sort and forward mail, then I’m now convinced that we don’t need a facility in Hampden. And I even wonder about Scarborough. And, I am receiving junk mail.
I like junk mail and with out it wouldn’t there be less mail. I should think that junk mail is better than no mail!!
My point was that Boston isn’t the nearest facility. Hampden was up until a few years back. And if you think your forward mail takes too long how long do you think it will take on a daily basis going to Scarborough and back? The savings they claim is nothing like you would think for the cost in service. And that is just first class mail they are talking. What will happen to Express? Priority?
If Fast Forward is pupping the customers mail and sending it to CFS, bulk does slip through…
only first class mail gets forwarded (not junk,/3rd class), and I agree they really need to re think things..we have people that get free post office boxes, something from years back like a grandfathered thing..I still dont understand it..also a auxillary route..very tiny, they are going to sub contract it out when our aux person retires. I been layed off (Im a sub) instead of adding those customers to our route which would give my my job back lets bring someone else in..absolutley befuddles me
There is criteria that people must meet to get the free boxes. For example the PO refuses to deliver to that address for whatever reason. I believe the DMM (domestic mail manual) explains it somewhat.
I will ask my boss..there is nothing wrong with the streets we dont deliver, and they are all thisclose to the PO
Hate to break it to you, but they are forwarding my junk mail.
well if it really bothers you, call them…it makes no sense…1st class/periodicals/certain newspapers..buts 3rd class shouldnt..but we appreciate your business :)
wondering if your getting presort standard, say like letter fro bank america, offering you a card…does it say Electronic Service requested? If so then that would be forwarded
https://www.dmachoice.org/dma/member/regist.action This works though it takes awhile to be removed from all list’s
I could forgo Saturday delivery if the post office was open for business at a time when working people can go there. Beyond that nix funding forward retirement benefits and charge sales flyers the same as first class (most folks hate them anyway and they are a waste of good tree’s) by having only first class mail.
The US post office uses the same business model as the State’s Maine Maritime Academy.
Yawn
Collins co sponsors bill. Then claims bill didn’t have any impact on the PO losing money. Just doing a quick search tells me that the PO would be in the black between 700 million and 1.2 billion over the past four years if not for this mandate she helped push through. And if it’s such a burden that “could” impact taxpayers years from now, why isn’t this mandate being pushed on all other government agencies? I mean come on, it must be a great idea Ms Collins. Oh that’s right, the other agencies would all be tax dollars, unlike the PO that is self funded and required by law to provide universal service. Or could it be because they have a union? Ya, that’s it. Let’s bankrupt the PO and bust another union.
The major problem is 80% of the cost is “labor”. Cost rise volumes drop something has to go.
The PO is mandated by law to give universal service to everyone. That alone will raise the % of labor cost when you compare to Fed Ex or UPS just because of the number of delivery stops. You will find that the salaries and benefits between all three are comparable.
Telephone companies are mandated to universal service to every home in America. If you have a landline in your home you pay a monthly fee which is applied to that universal service mandate ” Some areas of the US mandate 911 even if they don’t pay for a landline” and yet they still survived all the mandates and regulations. It’s time for the PO to change the way they do business. Just another way to look at this. Free markets will decide if it is to survive. P. S. No layoff contracts get real.
Really? How long would the phone company last if they were mandated to pay 75 years of healthcare in only 10 years? If they were to last, what do you think your phone bill would be? Maybe the government should start charging UPS and Fed Ex that same universal fee.
And as far as no layoffs, we also have a no strike clause. So unlike other “unions” we can’t strike if we disagree with what an arbitrator gives us.
I have read that even if they stopped the healthcare payment that they would still be in the red. I know Congress would have to approve it but I wonder if they started a universal fee for home postal service deliveries paid for by all Carries if that would solve the long term problems or would people stop using it all together. The reason I used the phone company comparison was due to deregulation. Private companies came into the market and the phone company’s had to compete with them while still having provide mandated services. The companies survived but only because the unions helped.
I have read that without the pre funding mandate the PO would have made between 700 million and 1.2 billion that past four years. You read what Collins said. Can’t imagine why she would say that since she was a co sponsor of the bill that is trying to kill the PO to begin with.
How much money are the people at the top making an what are there benefits ??
Nothing is being said about the USPS employees making a rediculously high wages!! If they want their jobs, cut the wage back. I have a friend in New Mexico that is making 26.00/hour!! Talk about greedy and complain about job cuts!!!
Kept fighting! If you can get that worker’s pay reduced, and then slash the pay of anybody earning $25, $24, and so on, eventually YOUR job will have the highest salary, and will be next in line to be slashed.
It’s called the race-to-the-bottom. Another phrase is “class warfare.”
geesh..I dont make 26 bux an hour
I know postal workers that make 12-13 an hour. But I also know some that make 30-40 per hour. What’s your point? There are electronic technicians that make maybe 70 per year. That’s not big pay for what they do compared to private sector.
At least shut down the Hampden Facility. Postal Worker drug addicts stealing drugs from sick Veterans. At least 21 thefts of drugs that are known from this facility. Apparently the Postal Workers have plenty of time on their hands to shop and decide what kind of drugs to steal from Veterans every night. Apparently there was no work to do at this plant. If there was work these Postal Junkies would be too busy working instead of shopping for their next drug heist from the U S Mail. The Hampden Facility, the Drug Supermarket for Postal Junkies.
I’m assuming you are employed. If your place of employment has a rash of thefts, would you argue for it to be shut down, with all the employees, including you, laid off?
Or would you argue for better oversight to avoid future thefts?
You are very out of touch. A rash of thefts? The US Mails are suppose to be secure. Its called the sanctity of the Mails. Enforced with Postal Police, Postal Inspectors, Supervisors and fellow law abiding workers. Yes the Postal Service has it’s own police force to secure the Mails. You missed the whole point of my Blog. These Postal Junkies had so much down time available, you know NOT WORKING, to go SHOPPING, open up mail packages and steal only narcotic drug packages destined for sick Veterans. You don’t get HIGH on Blood Pressure Medication so why steal it. These thugs were also on the clock, making over $20.00 per hour plus benefits, shopping for drugs, YUP NOT WORKING. This facility has NO Mail to sort therefore, not enough work for the amount of workers. Time to shut down the Obsolete Hampden Facility and save a substantial amount of money.
Oh, OK–I see. So if your own workplace turns out to have some thefts–though it’s surely supposed to be secure–the public should assume that YOU are overpaid and underworked, and clamor for your workplace to be shut down–throwing you out of a job, even though you yourself did not steal anything.
If you are a junkie of course you are going to do that, however a lot of people at that facility are very hard working people with families trying to make it.
I think I smell a bailout ! Or is that stink the smell of fuel exhaust as the mail trucks run up and down the I-95 delivering local mai linside of Maine from Massachusetts ?
Another thing… if people are buying more “on line”, rather than in local stores, the stuff needs to be delivered, right? So why are shippers opting to ship with UPS or FEDEX? Why not the post office? The post office must be doing something wrong, and they should FIX IT! How come the video of the Fedex guy throwing the TV over the fence at Christmas did not hurt Fedex?
fed ex and ups drop off packages for us to deliver for them…the packages have increased dramaticly in the past 6 0r so months..
Some of my mail order still comes by US Mail.
As the article explains, the post office’s financial mess was engineered by Republican lawmakers who want it to fail.
Why? So they can privatize it–ten to one, there are corporations eager to take it over. Their focus would be on laying people off and reducing services even more, to pay for their CEO’s multi-million dollar salaries.
I agree with you completely. In order to survive it’s gonna hurt and CUTS are needed across the board….but the Republicans won’t like that …..privatization is their goal and I’m sure certain companies are backing that agenda with funds…..
Having done years of consulting work for USPS, I admire the huge task they are faced with every day. I am not in agreement with their plans to resolve their financial crisis.
In particular, they want to dumb-down the service by slowing down first-class mail and eliminating Saturday delivery. Few businesses succeed by making changing over to an inferior product.
I agree that they should downsize some facilities and staff due to lower volumes of mail, but not at the expense of service quality.
They raised postage rates by 1 penny and got a boatload of money in. Since we all are using less first-class mail, my suggestion would be not to jump the rates by 1 penny but just bite the bullet and ramp it up to perhaps $0.49. It just went from $0.44 to $0.45. Bump it up to $0.49. Bulk-mail people still will get a discount. Nothing really would change except those of us who use first-class would pay $0.04 more and I cannot believe that is such a big deal. For me, I would rather pay the increased price and retain a fast, reliable service, that functions when I need it.
I know the argument for older folks having to pay extra is valid, but how many letters to they send out in a month? Maybe 10? That would be a lot. That’s $0.40 more per month, “less than one stamp.” I cannot imagine this would be a big burden.
What would we get for this increase?
– Continued fast, reliable, first-class mail, there when we need it.
– Saturday deliveries.
– Less closures of smaller post offices – sometimes the lifeblood & social world of small villages.
– Jobs in small towns retained.
The paydown of the debt and the streamlining of USPS operations could be done through attrition and staged scale-backs using a surgical blade instead of a hatchet.
USPS is the envy of the world’s postal systems. The process 1 billion pieces of mail every two days. My involvement with the operation, as an outsider, showed me the scale of the operation. I won’t bore you with gee-whiz statistics, but I was impressed. Postage costs here are cheap! Canada charges $0.61 for a first-class letter and I would not give you two-cents for their reliability. Even my Canadian friends cringe when I mention mailing them something. In fact, they were surprised when I was on the phone (they were visiting) and I told my CPA on the other end that I would “drop it in the mail” to her and she’d have it by Saturday. I think it was Thursday. I explained that a cross-town letter in DC likely would be there tomorrow, but it would be delivered on Saturday at the latest.
Here’s what you get in Canada:
– No Saturday delivery.
– Slow delivery – cross-town might take the week.
– No pickup at the mailbox. We leave mail at our mailboxes for the carrier to pickup. Not there.
– $0.61 for first class.
– Poor service. Limited hours. Few public mailboxes.
– $1.05 for a letter to the USA. Only $0.80 for USA to Canada.
Personally, I’d rather pay a few more cents and retain the best service in the world, ready when I need it.
Excellent post. Just as an FYI, postage to Canada went up to .85. I can’t tell you how many times Canadians have come down to the US to mail stuff because it was cheaper and usually faster. That was their comments and not mine.
I wish Senator Snow would sponsor a bill making the exact same require of all private companies as required of the U. S. Postal Service – wonder how that would go over with corporate America, stock holders, Republicans, Tea Party and Wall Street require per-funding 75 years of retirement and health costs…
Republicans would love it ! Those huge Healthcare conglomerates would have another cash cow to milk and the kickbacks would be awesome !
Is it any wonder the postal service is in dire straights? My internet service has an efficient mechanism to filter out spam & junk mail. Yet, when I go to my post office box, I must sift through volumes of useless junk mail to find my legitimate bills and letters. And, the post office says there’s nothing they can do about it.
Volumes huh? Like tons? There is nothing they can do, its a federal offence to mess with mail. Contact the people who are sending you junk mail. Get off your lazy bum and try and so something about it instead of getting mad because the postal serivce can’t do anythign about it.
Nobody said anything about being mad. I was merely stating the facts. Is there not enough junk advertising on TV, news papers and the internet that we have to endure it in our mail box? Even Public Television is now airing “soft commercials” from their sponsers. Where does it end?
not at the post office..the post office gets $$$ to send out all this, you can request being taken off their mailing list..it’s a hassle but can it can be done
junk mail as you call it brings in money for the post office if it was not for the junk main you would be paying 95 cents to mail a letter. Why don’t you call the post office in DC an see how much money they would lose a year if it was not for junk mail as you call it ?
Many years of overpaid workers, massive benefits and mismanagement now they wonder, why?
So far outdated in their thought process it’s of little wonder, what has happen. They really need to be creative and bring it all up to date and do lots more with less. We do not a sorting plant in Bangor but
it needs to be update with 2012 methods.
Sorry, we do need a sorting plant in Bangor
Call UPS an as them how much it would cost to send a letter from Bangor to Portland an give them the zip codes too. I bet it will be at least 10 bucks
I believe the pre-funding mandate is prohibitive to their bottom line HOWEVER, when I see people employed by the USPS with 6 brand new cars in the drive and a brand new expensive home, and UNBELIEVABLE medical benefits….I start to wonder that maybe….just maybe they are getting paid too much ? Especially since you are only able to get in if you are
a) a Minority
b) a Veteran
c) a Veteran/Minority (best bet)
If it is going to be run as a business maybe it should become more cost effective ? Let’s face it ANYBODY can put mail in a box….and there are a LOT of a ANYBODYs out there right now struggling, that would gladly take the job for HALF what they presently get.
How about Congress cut the pre-funding in half….and USPS take a cut in pay/benefits by half…which will ultimately lower the pre-fund cost even more…..PLUS…..a whole bunch of people get to KEEP working….and everyone’s ….well….working : ) In these times that’s better than most people are getting….and it’s as far as this writer’s sympathy can reach…oh and yeah….I think a buck is fair for a stamp….? No ? I mean I wouldn’t walk it there for a buck….
Really? I’m not a minority and I’m not the type of vet (was in military) that would get preference, but yet I got hired. And I know a lot of others that aren’t vets and aren’t minorities that got hired.
I pay plenty in taxes. I pay almost 300 a month for health insurance that doesn’t cover all that you think. I also pay into my own retirement. That doesn’t leave a lot of excess income even for what I make hourly. I would take Maine Care for insurance any day over what I have. Eye care, covered. Dental, covered. Co pay? What co pay. I have to pay extra for dental and eye care.
We need to close more faster..