NALC: $12 million second quarter operating profit puts USPS in black by $533 million for FY 2017

rolando

NALC statement on USPS’ May 10 quarterly financial report

On May 10, the U.S. Postal Service service released a report on its financial performance for the second quarter of Fiscal Year 2017, covering January, February and March of 2017. Here is National Association of Letter Carriers President Fredric Rolando’s statement about this report:

Today’s financial report shows the underlying business strength of the U.S. Postal Service while also indicating the need to address external matters beyond USPS’ control.

The quarterly operating profit of $12 million puts the Postal Service in the black by $533 million halfway through the 2017 Fiscal Year. Since the start of FY 2014, postal operations have a total operating profit of $3.7 billion.

That’s impressive for a government entity that earns its revenue and gets no taxpayer money while enjoying strong public and political support. It shows the importance of strengthening the unparalleled postal network—the centerpiece of a $1.3 trillion national mailing industry that provides 7 million private-sector American jobs.

At the same time, two key matters—the pre-funding of future retiree health benefits and the rollback in stamp prices—need to be addressed.

The reported red ink in recent years has stemmed from a factor unrelated to postal operations: the 2006 congressional mandate that the Postal Service—alone among all public and private entities—pre-fund future retiree health benefits, at an annual cost of $5.8 billion ($1.45 billion quarterly).

And the second quarter’s revenue would have been $500 million higher without last year’s rollback of stamp prices from 49 cents to 47 cents. It was the first rollback since 1919 and it makes little sense because USPS already has the industrial world’s lowest rates. It reduces postal revenue by $2 billion per year.

Two efforts are underway that could alleviate these matters.

The Postal Regulatory Commission is reviewing the postage rate-setting system, with a decision scheduled for this year. At present, USPS is capped by 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.

And House of Representatives legislation already voted out of committee would address pre-funding and other financial issues, including a partial restoration of stamp prices.

Addressing the external financial burdens posed by the price rollback and by pre-funding would allow USPS to continue to provide Americans and their businesses with the industrial world’s most-affordable delivery network.

source: NALC

20 thoughts on “NALC: $12 million second quarter operating profit puts USPS in black by $533 million for FY 2017

  1. HUGE bonuses are in the very near future for Mgt…we can’t make a profit….might as well give it to those who worked the hardest to screw us out of it!

  2. at the National Convention, you must vote on a rule change that states that the “Union Management” gets the same amount of raise that a Letter Carrier gets………let’s see how they like getting a 1% yearly raise! funny thing is Rolando is not even worth 1%.

  3. Your Letter Carrier Company Union sounds a lot like the criminals at Elephant Plaza……………..that’s because Rolando is their shill who will only throw you a 1% bone while the current true inflation rate is in the 6-7% range. notice how Rolando never mentions PFP Bonus Money Scam in contract negotiations…..it’s so he can curry favor with PO Mismanagement, while giving you get peanuts. vote this creep out if you plan on ever having any kind of change.

  4. Rolando makes 180,000 a year. so does at least 18 people under him make 150,000 do you really think they care about you, I haven’t had a decent raise in 27 years.all they tell you is stay out later with your parcels to make money. what if you dont want to stay out . and no I dont want the pressure of the 8 hour list . im too old .get me a decient raise for working like ups instead of usps

  5. The prefunding mandate was started in 2006 and supposed to last ten years.

    It’s now 2017, what am I missing? Did they add more time to it? Are they lying? I’m so confused as to why they keep saying congress needs to address the prefunding mandate that should either be over by now or at the end of the fiscal year in September.

    Can someone tell me if it was extended or what?!

  6. This stuff is sad to the core. Lying in the name of stakeholders, the profit seekers, the 4 Unions, Hospitals/Doctors, pharmaceutical industry, and the Mailers Association all on the backs of Federal Retirees!
    Go suck a boiled egg! All the money grabbers stealing in the name of healthcare!

  7. I really don’t want to hear another word out of this dude’s mouth unless it is about the damn contract.

    • See the latest from him ? Agreed with the USPS that a gofundme page for a seriously injured carrier should be shut down.

      All he does is agree with mgmt. Wants to sell us down the river with his health care bs.

  8. Why are news outlets saying we’re loosing money and because of it the PO wants to raise stamps 1 cent? Who’s right and what’s the real truth?

    • News outlets are fake news, the real truth comes out of PMG Brennan’s mouth.

  9. The Postal Service made even more profit . End the prefunding of health care costs, or force every other employer to pay the cost! Why is the Postal Service stuck with this invented cost while every other employer is not? Most people don’t care about what is right or wrong, fair or unfair, only about what they can get away with!

  10. How many times are we going to hear about how much $ we’re making and the “loss” is from the pre funding? Fred you sound like a broken record. Keep focusing on the same stuff Fred, and don’t worry about our contract. We haven’t had a raise in a year 1 1/2 but don’t worry. It’s not that big a deal. As long as you continue to say how good and strong this union is and blame any problems on Congress or the post office then we’ll be fine. That’s why most of us in our office are working a 2nd job. Go get ’em Fred!

  11. Rolando should be removed as President of NALC. He is not representing Letter Carriers (current & retired). He has become the lapdog for USPS and neglecting the the membership of NALC. Sadly, Rolando seems to think he is an accountant and not a union representative. If he knew what he is doing he would know that the House Government Oversight and Reform Committee does not oversee or have jurisdiction of the Medicare program. That responsibility belongs to the House Ways & Means Commitee. 2016 Postal Reform did not did not receive a floor vote and HR756 and HR760 won’t go anywhere this year. While the bean counters are using all their magical powers in trying to sell this legislation the fact remains that the Postal Service and union presidents are trying to shift their health care benefits costs onto Medicare. I’m sure members of the House Ways & Means will not support Postal Reform because they are not going to pick up the bill the Postal Service has not paid since 2011. While Rolando keeps parroting how stakeholders have “coalesced” around this legislation he might want to do a search on the Internet where he will find there are many more stakeholders who are not “coalesced” and do not support this legislation. I read that the Chairman Chaffetz will not be running for the House of Representatives in 2018, maybe Rolando should follow him since he no longer represents the NALC membership.

    • You and the USPS pay into medicare, look at your paystub. You pay into the system, but then use the retiree healthcare plan because it’s better.
      Paying into 2 systems should be your outrage. We should be paying in either not both plans. The problems is that no agency wants to refund payments or over payments such as OPM or Medicare. They love the extra income the USPS sends them.

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