Going Postal?

The lead article in today’s New York Times, “Losing Billions, Postal Service is Near Default,” describes a situation at the U.S. Postal Service that is so severe, it demands we sit up and pay attention. In addition to its now-standard deficit operation — it will be unable to meet a $5.5 billion payment later this month — the Postmaster General warned that the organization would be unable to pay its workers and provide gasoline for its trucks this winter unless something was done to rectify the situation.

The standard excuse for the post office, that it’s been trumped by email, doesn’t hold water when 1) the United Parcel Service and Federal Express are able to operate profitably, and 2) previous advances such as the telegraph and telephone did not put the U.S. mail out of business.

Indeed, it’s things such as labor costs, that are 80 percent of the total at the Post Office compared to 50 and 30 percent for its competitors, that are driving the organization out of business. And, to make matters worse, the union achieved a no-layoff clause in its last May contract.

Now, I’m not one to bash unions — recent attacks by Governors such as Scott Walker were way out of line — but it seems like we’re in a similar situation to the automobile industry here. Someone (how about President Obama?) needs to sit both sides down at a table and lay out the alternatives in a clear and forceful manner.