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Postal Service Considering 120,000 Layoffs

Photo: Alexander Marks

The U.S. Postal Service’s financial woes, including an $8 billion loss and the threat of default in September, have led to calls for Congress to help.

The Postal Service made an additional request to Congress Friday, asking for legislation allowing for the elimination of 120,000 jobs. The proposed layoffs add on to the 110,000 cuts previously announced.

Collective bargaining agreements between the Postal Service and unionized employees prevent job cuts. The Postal Service asked for legislation to eliminate the restriction.

“We believe that this extraordinary request is a key to securing our future and our continuing ability to provide universal service to our nation,” a Postal Service statement says.

The legislation would also allow the Postal Service to establish its own health benefits program and administer its own retirement program.

Postmaster General Patrick Donahoe said in July the Postal Service can not make a $5.5 billion annual payment to cover future retirees’ health benefits.

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