Postal Service Wants to Cut 120K Jobs

It also aims to exit federal health, retirement plans
By Matt Cantor,  Newser Staff
Posted Aug 11, 2011 5:37 PM CDT
US Postal Service Looks to Cut 120,000 Jobs
Boxes await pickup at the post office in Caratunk, Maine, Thursday, July 28, 2011.   (AP Photo/Robert F. Bukaty)

The US Postal Service is looking to cut 120,000 jobs—20% of its workforce—and pull its workers out of federal health and retirement plans, reports the Washington Post. USPS would replace those benefits plans with new ones of its own. The proposal, which would include layoffs currently banned by union contracts, requires the approval of Congress. “We will be insolvent next month due to significant declines in mail volume and retiree health benefit prefunding costs imposed by Congress,” the organization told employees.

“We do not make this request lightly,” USPS said of the proposal to Congress. “However, exceptional circumstances require exceptional remedies.” It says it must cut the 120,000 career jobs by 2015, a move that “collective bargaining agreements” render impossible; thus “a legislative change is needed.” The head of the American Postal Workers Union says its members “vehemently oppose any attempt to destroy the collective bargaining rights of postal employees.” Congress’ reaction to the proposal remains unclear. Click to read about predictions of getting mail only three days a week. (Read more US Postal Service stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.