Postal Service warns of default as losses mount

[The Northerner]

NEW YORK (CNNMoney) -- The U.S. Postal Service warned on Wednesday that it may default on some of its financial obligations later this year after reporting yet another quarterly loss.

The USPS, a self-supporting government agency that receives no tax dollars, said it suffered a loss of $329 million in the first quarter of federal fiscal year 2011. That compared with a loss of $297 million a year earlier.

The agency has been suffering from an ongoing decline in mail volume, which has undercut revenues, while retiree health care costs have been straining its reserves.

Excluding costs related to retiree benefits and adjustments to workers' compensation liability, the Postal Service said it had net income was $226 million in the first quarter, which ended on Dec. 31.

Read more: http://money.cnn.com/2011/02/09/news/economy/postal_service/index.htm

[MadHound]

1. Retirees and current workers can kiss those pensions goodbye.

Seems to be a lot of this going around, company gets into financial trouble, gets its pension obligations to the curb, then comes back better than ever.

[TwilightGardener]

2. Well, they're going to need help, that's all. If we can bail out banks and GM, we can bail out

the Postal Service--they have to meet their obligations, and we must have mail delivery.

[Kokonoe]

3. Yet, its interesting that the $.02 stamp price increase was canceled last year.

It seems all the gloom and doom is orchestrated by design.

[dragonlady]

4. Republicans have a 3-2 majority on the PRC

which is the board that denied the rate increase. Do they want to force the USPS into canceling one day of delivery and cutting out some post offices (thereby cutting many union jobs) or stiffing postal retirees on their pensions? :shrug:

[dkofos]

5. Lack of junk mail volume.

Had they began converting their fleet to electric vehicles in the 70's
they would not be wasting so much on fuel today.