USPS Loses $1.3 Billion in 3 Months

(CNN) — The U.S. Postal Service delivered a $1.3 billion loss in the last three months of 2012.

The volume of first-class mail was down 4.5 percent, but shipping and package volume increased 4 percent.

In 2006, Congress mandated that the Postal Service pre-fund health care benefits for retirees. Since then, the USPS has been struggling, borrowing from taxpayers, and twice defaulting on loan payments.

Earlier this week, the Postal Service announced plans to end Saturday delivery in order to save money. Though it’s still unclear if the USPS can do that without Congress’ help.

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  1. Chuck Norman says:

    No big deal for me. I hardly use the USPS anymore. I find that UPS and FedEx provide me with less expensive shipping alternative. As for letters, etc., I use email, a phone call, or talking to people face-to-face. I say the USPS should consider a Monday, Wednesday, and Friday service. And by the way, why do they have to have their own building that is poorly staffed at peak times (e.g., lunch time) and no real customer service (e.g., no smile, I really don’t care if I wait on you or not, and why are you bothering me type of attitude)? Why not have post offices in grocery stores or shopping malls. That way people can do their mailing and shopping in one place? Pay them $12.50 an hour. I foresee an end to the high paying postal jobs. Sorry to the postal employees making more than three times the minimum wage. Getting paid between $50,000 and $60,000 dollars to deliver mail never made sense to me. Not when I get paid $34,000 to do more physical work.

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