Forum Post: When the government gets involved...
Posted 12 years ago on Dec. 18, 2011, 10:23 a.m. EST by JoeTheFarmer
(2654)
This content is user submitted and not an official statement
When the government gets involved we generally end up losing. As an example let’s look at the postal service.
Wages
- Average US postal driver rate $47,000
- Average FedEx driver rate $52,000
- Average UPS driver rate $72,000
Profit or loss 2010
- US Postal Service - $13 Billion Loss!!!
- FedEx - $956 Million Profit
- UPS - $2.5 Billion Profit
great post !
It's not that simple.
The battle over the U.S. Postal Service's "pre-funding" of future retiree health care benefits shows no signs of weakening.
Earlier this week, C-Suite Insider obtained a memorandum between the Congressional Research Service and House Oversight Chairman Darryl Issa (R-CA) which said the USPS was not obligated to pay for retiree health care benefits of future workers, even though it could be interpreted that way. But the memorandum is not changing the opinion of the National Association of Letter Carriers. (Ed. Note: See below)
I caught up with Fredric Rolando, President of the 300,000 member association, asking him if Congress did indeed create the USPS fiscal crisis.
FR: Yes, that’s precisely what it did. The congressional notion was that the Postal Service was making lots of money selling its products and services, and so it might be a good idea to put those profits into pre-funding future retiree health care benefits for the next 75 years and do so in a decade. No one else, public or private, does this – but it would put the Postal Service that much more ahead of the game in terms of future liabilities. And so, in 2006, Congress mandated that the USPS do so, at a price tag of about $5.5 billion a year.
This was copied from another site.
http://www.cnbc.com/id/45049636/Fixing_the_US_Postal_Service_s_Finances
Glad that you are agreeing with me event though you start with "It's not that simple". When the government gets involved we end up losing.
UPS has one of the best benefits programs in the world and makes a profit!
If you take away the $5.5 Billion from the $13 Billion loss, the postal service is still losing $8 Billion in 2010.
I realize that. I wasn't trying to crush your argument. There must be some heavy internal problems in the USPS.