The U.S. Postal Service: A Government Failure

After numerous years of operating in the red, thus giving conservatives a countless amount of legitimacy on why the government cannot manage an economy, the U.S. Postal Service says it may have to layoff an additional 120,000 workers in order to continue to operate.

That isn’t even the worst of it.  As a recent Bloomberg article and study point out, the USPS’s dismal future is pretty much all its own fault:

[T]he USPS continues to plant the seeds of its own destruction. This year it reached a new contract with the union representing its mail clerks, drivers, mechanics and custodians that included a continuation of the no-layoffs clause for current workers, a 3.5 percent raise over 4 1/2 years, and regular cost of living increases.

Obviously, laying off those employees will be difficult with the “no-layoffs clause” in effect, although they may be referring to employees not covered under the aforementioned negotiations.

Published in

Post a comment