With Fewer Customers and Fixed Labor Costs, U.S. Postal Service Faces $7 Billion Net Loss in 2009

The U.S Postal Service faces a net loss of $7 billion in fiscal year 2009 even if it succeeds in cutting its costs by $6 billion, according to testimony provided to a Senate subcommittee last week by the Government Accountability Office.

The Postal Service is expected to end the year with $10.2 billion in outstanding debt.

Meanwhile, USPS faces continuing high overhead in the form of employee wages and benefits fixed by collective bargaining agreements, as well as declining use of the service by its customers.

“It is safer to say that they are bordering on insolvency,” Kate Siggerud, Managing Director of Fiscal Infrastructure at the GAO told CNSNews.com.

http://www.cnsnews.com/news/article/52367

With Fewer Customers and Fixed Labor Costs, U.S. Postal Service Faces $7 Billion Net Loss in 2009

With Fewer Customers and Fixed Labor Costs, U.S. Postal Service Faces $7 Billion Net Loss in 2009

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