5-point plan to save the USPS
The U.S. Postal Service has defaulted twice on payments to the U.S. Treasury and reached its $15 billion borrowing limit for the year. But as the agency continues to power through and wait on reform action from Congress, it's become clear the USPS acts as an integral part to the American economy and necessitates saving, according to The Federal Times, as businesses around the world depend on it and postal mailing software for their direct mail needs.
In a recent article, The Federal Times said the USPS represents 7 percent of the GDP, is a $1 trillion "cog in the wheel of commerce" and provides more than 8 million private-sector jobs, demonstrating just how important the USPS is to the economy. Recognizing the urgency with which the USPS situation must be remedied, the paper outlined a five-step plan of action to revitalize the USPS.
It first recommended the agency be streamlined and restructured, which the USPS has tackled with recent consolidation. Congress must also act to reform the USPS pension system, which was overfunded by nearly $13 billion - $13 billion the USPS could sorely use.
Third, collective bargaining between the USPS and its unions needs to be reformed, particularly with the arbitration process. Lastly, Congress and the USPS need to collaborate. The prepayments to retiree healthcare, which the USPS defaulted on, need to also be reformed, as The Federal Times contends Congress set the payments too high, and in too-close proximity to one another. The article suggested stretching payments out over 40 years instead of 10. Compromising on pending legislation, like that concerning Sunday delivery, is also crucial.