Postal unions hit out at Congress over failure to support USPS

US postal association NRLCA has joined other postal union representatives in blaming politiciansfor the continuing financial problems at the US Postal Service, following the announcement by USPS

USPS confirmed on Monday that it would be unable to pay $5.5 billion to the federal governmentthat was due on Wednesday and, in the absence of legislation enacted by Congress, would also miss a$5.6 billion payment required by the end of September for its retiree healthcare fund.

Jeanette Dwyer, president of the National Rural Letter Carriers’ Association, said thecongressionally-mandated $5.5 billion payment to the US Treasury Department that was due this week,part of a 10-year plan to fund the next 75 years of postal retiree health care benefits, was arequirement that no other government agency or private corporation in America had to meet.

“This unfair burden has drained postal resources and forced the Postal Service to proposeunprecedented service cuts,” she said. “Congress should fix these payment issues so we can get backto the business of modernising our network and offering competitive services to customers six daysa week.”

The payments began after Congress passed into law the Postal Accountability and Enhancement Actof 2006. NRCLA said it was doubtful whether the Postal Service would be able to make futurepayments as well.

The American Postal Workers Union (APWU) blamed House Republican leaders for failing to takeaction to resolve the “congressionally manufactured” USPS financial crisis that had brought thePostal Service to this week’s payment default. APWU President Cliff Guffey said: “The postaldebacle is a manufactured crisis, and it is being exploited by those who want to privatize thePostal Service. The House Republican leadership’s bill to ‘fix’ the Postal Service couldn’t beclearer.”

Several US Senators this week also called on their colleagues in the House of Representatives toget on with producing new draft postal legislation to rescue the struggling US Postal Service. TheUS Senate passed a rescue bill for USPS in April, but the House has been inactive on postal reformsince its own bill passed out of committee late last year.

Senator Tom Carper, chairman of the subcommittee that oversees the US Postal Service, recentlyreacted angrily to reports that legislation covering the restructuring of the US Postal Servicewould be delayed by the House until the end of the year, describing the move as “deeplydisappointing” and “irresponsible”.

Republicans controlling the House of Representatives had originally tabled a debate for thepostal reform bill for July, but recent reports suggest that the legislation will now be delayeduntil November or December, after the US presidential election.

The Postal Service is seeking changes in the law that would provide it with the authority todetermine delivery frequency; develop and price products quickly; control healthcare and retirementcosts; rapidly realign mail processing, delivery and retail networks; operate under a streamlinedgovernance model; and leverage its workforce with greater flexibility, in order to achieve annualimprovements in its finances of up to $20 billion.