Home / Civilian / Postal Service Will Be Broke in a Year, No. 2 Leader Says

Postal Service Will Be Broke in a Year, No. 2 Leader Says

Photo: Alexander Marks

The financially strapped U.S. Postal Service sounded the alarm bell again Thursday with a stark warning from its No. 2 leader: it could be broke in a year.

Deputy Postmaster General Ron Stroman told Federal Times Thursday the Postal Service will be insolvent by next August even if it skips an upcoming $5.5 billion payment for retiree health care.

“We’re really up against the wall here in terms of stabilizing the finances of the Postal Service,” Stroman said in the interview.

The Postal Service said last week it is considering cutting 120,000 jobs in order to cut costs. However, collective bargaining agreements prevent the layoffs from occurring.

The Postal Service asked Congress for legislation to eliminate that restriction.

The Postal Service announced Thursday it began contract negotiations with the National Association of Letter Carriers, AFL-CIO. Talks with the National Postal Mail Handlers Union will begin Aug. 30.

The two unions represent 247,000 of the Postal Service’s 560,000 career employees.

Check Also

Four Universities to Manage Nuclear Research Centers Under DOE NNSA Partnerships

The Department of Energy's National Nuclear Security Administration has selected four universities to operate new centers of excellence under a shared allotment of $40.5M. These new centers will work to foster collaboration between the NNSA and academia under the Stewardship Science Academic Alliances program, the DOE said Monday.

Leave a Reply

Your email address will not be published. Required fields are marked *