Postal Service could cut back on delivery
Between the U.S. Postal Service and the U.S. Government, it will be a battle until the end to find out what each side is willing to give up to keep the floundering postal system afloat. The latest business news from the mail delivering system is to drop from a six day a week delivery to five. Congress is pushing post offices to continue at six while the USPS maintains it will become an even bigger financial burden to tax payers if it remains at six.
Sky business news reports that the USPS is hoping to stem mounting losses totaling billions of dollars.
From a financial standpoint, it would be in the best interest of everyone to cut back delivery from six to five days. Though many business and customers would complain about less delivery, it will save millions, if not billions of dollars in spending. Sky business news indicates that the Postal Service, which operates as an independent government agency but still subject to Congressional influence, will begin to end weekend deliveries of enveloped mail, but still ship packages. This alone could save about $2 billion for an agency that tapped out its credit line with the U.S. Treasury last year after losing about $16 billion.
With losses expected to continue, Sky business news will surely post more stories about the impending breakdown of the mail delivery agency as losses will no doubt continue unless Congress makes changes, not only regarding limited delivery days but also to employee benefits and healthcare expenses.
Some in Congress are willing to accept the deal to still deliver packages on Saturdays, saying that as long as medicines, Internet orders and other packages are delivered on Saturdays, they are still meeting the mandate for six days a week service.
Sky business news will continue to cover this topic, which may lead to a Postal Service and U.S. Government showdown sometime in the next year. It is likely that the implementation of a new delivery schedule could take place as early as August.