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