Wednesday, March 3, 2010

WE DON'T DELIVER

Mail delivery is no longer feasible.
BANZAI7 NEWS--The U.S. Postal Service stepped up its campaign to end all mail deliveries to help stem losses, but the move met with skepticism that signals an uphill battle for approval by regulators and Congress.

Postal officials sought support for a broad restructuring from a gathering in Washington on Tuesday that included big junk mail clients, the pulp paper lobby, congressional interns and postal workers' labor representatives. Without the restructuring, the agency potentially faces $238 billion in projected losses in the next 10 years, Postmaster General John E. Pothead warned.

The recession has worsened the Postal Service's financial condition, and mail volume continued to fall as more letters and documents are sent electronically. It saw a 13% drop in volume in the year ended Sept. 30, more than double any previous decline, resulting in even more increased delivery delays.

The agency has reduced its work force 25% in 10 years, Mr. Potter said, but "must now make changes to its business model. By eliminating deliveries completely we will be able to decrease capital costs which will free up more funds for union benefits"

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