8/10/2018 NALC President Fredric Rolando’s statement on the release of the U.S. Postal Service’s financial statement for the third quarter of Fiscal Year 2018, covering the months of April, May and June of 2018:
The Postal Service’s quarterly financial report shows the Postal Service’s underlying business strength while also indicating the need to address external matters beyond USPS control. Despite a $402 million revenue increase compared to the same period last year (2.4 percent rise), USPS reported an operating loss of $889 million.
This shows the need for policymakers to address two public policy issues – the stamp price rollback and the congressional mandate that USPS prefund future retiree health benefits decades into the future.
In April 2016, the price of a stamp was rolled back by two cents, reducing postal revenue by $2 billion a year or $500 million a quarter That was the first rollback since 1919 and it makes little financial sense because USPS already has the industrial world’s lowest rates. Without this decrease, the $1.192 billion operating loss year-to-date (first three quarters) would be an operating profit of $308 million.
Fortunately, the Postal Regulatory Commission is in the midst of a legally mandated review of the postage rate-setting system. At present, USPS is constricted in its ability to adjust rates by no more than the Consumer Price Index, but the CPI is an economy-wide measurement of consumer goods and services that doesn’t fit a transportation and delivery provider. The PRC has the ability to correct this mismatch and relieve the resulting financial pressure.
Meanwhile, Congress should address the pre-funding burden it imposed in 2006, which requires USPS – alone among all public and private entities in the country – to prefund future retiree healthcare benefits at an annual cost of about $5.8 billion. It’s important to note that this goes on the books as red ink whether or not it’s actually paid in a given year.
Fixing the external financial burdens posed by the price rollback and pre-funding will put postal finances on a stable footing and allow USPS – which is based in the Constitution, funds itself through earned revenue, and enjoys broad public and political support – to continue providing Americans and their businesses with the industrial world’s most-affordable delivery network.
the Postal Circus Comptroller VP McDevitt is running for the exit after only 4 years on the job, she would know how really bad the finances are, she is not hanging around, August 24th her last day……..another sign the place is in really bad shape…..yet this fool Rolando prattles on and on like the company lackey he is! better get your mail sack ready Rolando…..your plush life is soon be be over as you know it!
Hey Rolando.
You suck. Worst executive team in NALC history. Just a branch of mgmt.
Constitution? where does it say anything about package delivery? or 3rd class junk mail for that matter? 1st class mail is dropping like a rock, will no longer support the bureaucratic swamp. Rolando is talking out his a@@! just hope that the AFL/CIO has a place for you to crawl too shill!
the po bureaucrats only want the PFP bonus cash scam to continue and the po company unions only want to suck dues money out of the sheeple. chapter 13 reorganization with a 40K buyout is the smartest thing to do. I stand with President Trump on this!
so all of a sudden that fool Rolando is a rock rib Constitutionalist? his fellow radical left wing Demonrats have been trying to break down the Constitution for the last 75 years……yet not a peep out of this moron Rolando. #2 the Postal Circus has defaulted on pre-funding payments since 2009…..not paid one thin dime into it-so enough with that canard. In addition, the PO Mismanagement has not made one payment on the $25 Billion they owe the US Treasury, you know, the place where they keep the US taxpayers money. Rolando is a shill for the PO Mismanagement that has run this place into the dirt….they lost 1.5 Billion this quarter, so stop with your smoke and mirrors and don’t look at the real picture, just look over there at the shadows on the wall. President Trump should reorganize this dump like a chapter 13, pay off debt, clean the books,get the 95,000 lite/limited/IOD off of the payroll, pay for new vehicles and trailer cabs…….then kick it to the curb and let it sink or swim on its own like UPS/FDX/AMZN do……………………we all know they will run it into the round within 5 years. President Trump make a 40K BUYOUT part of the reorganization, current po mismanagement and company unions do not have the right stuff to run anything, much less the Postal Circus! 99% of Postal Circus Mismanagement have no University education…..yeah I say go for it dolts. ROFLMFAO!!!!!!!!!!!!!!!!!!!!!!!
Keep in mind the maximum amount of a buyout offer is $25,000 under law. Forget about the USPS offering any retirement incentives other than lowering the minimum age.
The maximum amount they can offer under law is $25,000 and plenty of people are getting out with no incentive offer so they have no reason to offer a buyout anymore.
I believe that was Fred’s exact response for the 2nd quarter results as well. Probably be his response for the 4th quarter results too. I wonder how long he can keep beating the dead horse pre funding crap before people just ignore it.