United States Postal Service On Verge Of Bankruptcy

The United States Postal System has a five point five billion dollar payment due this month and they are not going to be able to pay it which could result in no mail deliveries this entire winter. The interruption in mail delivery services can be avoided if the government steps in and helps out. The service which is a public employer is claiming that they handle almost forty percent of global mail and since 2008 has been piling up losses. These losses are due in part to a decline in the volume of mail caused by rising e-commerce and the Internet plus rising costs.

This past July the United States Postal Service revealed a plan to close more than ten percent of their post offices in the United States. In the past four years the Postal Service has cut one hundred ten thousand jobs which is equal to sixteen percent of the workforce to cut the wage bill.

The payment that is due at the end of September is meant to be used to finance future health care for retirees. On Tuesday the Senate committee will meet to discuss the financial difficulties that the Postal Service is having. The Postmaster General has considered closing three thousand seven hundred locations, the lay off of one hundred twenty thousand workers, and eliminating deliveries on Saturday to help close a nine point two billion dollar financial hole. Unfortunately laying off workers might be a little hard because of the contract signed in May that that has a clause that states no new layoffs.