Now You See It, Now You Don’t

The Postal Service’s financial report for the first quarter of Fiscal Year 2014 shows the agency enjoyed an operating surplus of $765 million. But the agency’s good news was buried in most media accounts, which said the USPS suffered a loss of $354 million loss.

“The USPS reported losses for the first quarter of 2014 for one reason — the congressional mandate that requires the Postal Service to pre-fund healthcare benefits for future retirees.” said APWU President Mark Dimondstein. No other government agency or private company faces such a requirement.

“The USPS is suffering from a manufactured crisis,” Dimondstein said. “Privatizers have used the ginned-up crisis to undermine a great national treasure. They’ve been closing mail processing plants, outsourcing retail operations, threatening to eliminate six-day delivery and generally harming service.”

Fredric Rolando, president of the National Association of Letter Carriers, said the first-quarter report “show why the postal network must be maintained and strengthened, not degraded.” The operating surplus for the first quarter of Fiscal Year 2014 continues a trend that began last year. The USPS showed an operating surplus of $100 million for the first quarter of Fiscal Year 2013.

“These trends augur well for the future, because they reflect the opportunities increasingly presented by the Internet and by an improving economy,” Rolando said. Package revenue increased by more than 14 percent during the quarter, due to online shopping.

“The solution to the postal crisis is clear,” Dimondstein said. “Congress must eliminate the pre-funding requirement and allow the USPS to enhance service.”

Click here for the USPS Presentation on Finanical Report