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Attention Taxpayers: Despite $15.9 BILLION loss, U.S Postal Service Execs See Boost in Pay.

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Despite nearly $16 billion in annual losses announced by the U.S. Postal Service on Thursday, all but one of the top five executives for the nation's mail service had an overall compensation increase this year, records show.

Unlike past years, when the Postal Service’s politically appointed, bipartisan board of governors awarded executives lucrative deferred compensation deals and incentive bonuses, this year’s compensation increases came mostly in the form of pension plan earnings.

Postmaster General Patrick Donahoe, for instance, earned a base salary of $276,840, but even without a bonus or incentive payout, his overall compensation came to $512,093, compared with $384,229 in 2011, according to regulatory filings.

Fueling the rise was the fact that his retirement account grew by $186,536. A 37-year employee of the Postal ServiceMr. Donahoe was paid $4.76 per hour during his first job as a postal clerk.

Meanwhile, two other executives — Ellis Burgoyne, chief information officer, and Mary Anne Gibbons, general counsel — also received hefty increases in their retirement plans.

In fact, Mr. Burgoyne’s retirement plan grew by more than $270,000, bringing his total compensation to $510,505, slightly less than Mr. Donahoe‘s.

Compensation for Joseph Corbett, the Postal Service’s chief financial officer, rose from $310,483 in 2011 to $315,841 last year, though he earned more than $330,000 in 2010.

In addition, the Postal Service’s chief human resources officer, Anthony J. Vegilante, received $60,000 in retention bonuses for fiscal 2011 and 2012 on top of his $240,000 annual salary, filings show. Nonetheless, Mr. Vegilante’s overall compensation for 2012 dipped to $363,002, compared with $364,667 the previous year.

A sixth postal executive, acting Chief Financial Officer and Executive Vice President Stephen Masse, was not subject to compensation reporting requirements until this year, and he earned $222,919 overall.


Announcing $15.9 billion in losses for fiscal 2012, postal officials urged Congress to pass legislation that would address a host of issues, including a requirement that the Postal Service pre-fund retiree health care benefits. That mandate alone accounted for about 70 percent of the Postal Service’s net loss for fiscal 2012, officials said.

Read more: Despite $15.9 billion loss, U.S. Postal Service execs see boost in pay - Washington Times http://p.washingtontimes.com/news/2012/nov/15/us-postal-service-loses-159-billion/?page=2#ixzz2CW4VuxHv 


Should we bail out the post office? 


by on Nov. 17, 2012 at 4:23 PM
Replies (11-19):
Sisteract
by Whoopie on Nov. 18, 2012 at 10:20 PM

No one needs home mail delivery 6 days a week- Cut it back to 4, some of the workers could be put back to work in the facility, and other cut to PT.

jcrew6
by Platinum Member on Nov. 18, 2012 at 10:30 PM
"Mail volume peaked in 2006 at 213 billion pieces. The effects of the shift to digital communications coupled with the impact of the recession resulted in mail volume sinking more than 20%, to 167.9 billion pieces last year. Over the last four fiscal years, the Postal Service reduced its size by 110,000 career positions and saved $12 billion in costs. Expenses, however, continue to exceed revenue in part due to an overstaffed workforce."
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6Fish
by Member on Nov. 19, 2012 at 12:24 AM

First of all, you can't put those employees to work "in the facility."  50 distribution centers were cut this summer, and another 180 will be cut in 2 more major cuts coming in the next year or so.  There are going to be thousands of people in the plants without jobs.  The job loss would be staggering.  It's not just one guy per route.  There are the regular carriers, yes.  But you would cut all of the T6 employees and all of the PTF employees.  Thousands and thousands would be without jobs.  Second of all, if you cut mail delivery back to FOUR days, the back log of mail sitting for 3 days would be tremendous.  The carriers would absolutely NEVER get caught up.  You think mail delivery is slow now, wait until you have the mail just sitting for 3 days.  The way it is now, when a holiday falls on a Monday and the mail sits for just two days, the following Tuesday is absolutely crazy.  Anything other than first class or priority doesn't even get delivered, it just sits in the post office until Wednesday, and the carriers are often out delivering for 10 hours, wearing headlamps in the dark to deliver the mail.  You would absolutely never, ever win a fight with the union, or even Congress for that matter to try to cut delivery back to 4 days.  Congress can't even agree to cut it back to 5 because there are a lot of negatives to it.  And I don't say that just because my husband is a carrier.  Honestly, my husband has been with the postal service for 15 years, and would more than likely survive any cuts, and as a family, we would love to see him have Saturdays off. The biggest concern about 5 day delivery is the impact it will have on customer service, which could ultimately drive mail volumes even lower. 

The postal service is making cuts like crazy.  My family is currently in the process of preparing for a 1200 mile move across the country to a much bigger office where we know my husband won't be at risk of being transferred out.  PMG Donahoe is looking at every possible angle to make cuts whereever he can, but he can't get Congress to move on anything. 

Quoting Sisteract:

No one needs home mail delivery 6 days a week- Cut it back to 4, some of the workers could be put back to work in the facility, and other cut to PT.


Sisteract
by Whoopie on Nov. 19, 2012 at 12:57 AM

Back log of what kind of mail? Ads?

Sorry if you're in the industry- it's happened in all industries- Competition and technology has made the USPS obsolete.

Quoting 6Fish:

First of all, you can't put those employees to work "in the facility."  50 distribution centers were cut this summer, and another 180 will be cut in 2 more major cuts coming in the next year or so.  There are going to be thousands of people in the plants without jobs.  The job loss would be staggering.  It's not just one guy per route.  There are the regular carriers, yes.  But you would cut all of the T6 employees and all of the PTF employees.  Thousands and thousands would be without jobs.  Second of all, if you cut mail delivery back to FOUR days, the back log of mail sitting for 3 days would be tremendous.  The carriers would absolutely NEVER get caught up.  You think mail delivery is slow now, wait until you have the mail just sitting for 3 days.  The way it is now, when a holiday falls on a Monday and the mail sits for just two days, the following Tuesday is absolutely crazy.  Anything other than first class or priority doesn't even get delivered, it just sits in the post office until Wednesday, and the carriers are often out delivering for 10 hours, wearing headlamps in the dark to deliver the mail.  You would absolutely never, ever win a fight with the union, or even Congress for that matter to try to cut delivery back to 4 days.  Congress can't even agree to cut it back to 5 because there are a lot of negatives to it.  And I don't say that just because my husband is a carrier.  Honestly, my husband has been with the postal service for 15 years, and would more than likely survive any cuts, and as a family, we would love to see him have Saturdays off. The biggest concern about 5 day delivery is the impact it will have on customer service, which could ultimately drive mail volumes even lower. 

The postal service is making cuts like crazy.  My family is currently in the process of preparing for a 1200 mile move across the country to a much bigger office where we know my husband won't be at risk of being transferred out.  PMG Donahoe is looking at every possible angle to make cuts whereever he can, but he can't get Congress to move on anything. 

Quoting Sisteract:

No one needs home mail delivery 6 days a week- Cut it back to 4, some of the workers could be put back to work in the facility, and other cut to PT.



sweet-a-kins
by Emerald Member on Nov. 19, 2012 at 5:33 AM

Why won't republicans ACT to help FIX the Post Office

jcrew6
by Platinum Member on Nov. 19, 2012 at 8:18 AM

But some liberal lawmakers and postal unions have pushed back against any attempts to limit six-day deliver.

Also, Issa has proposed a number measures. Most receiving zero democratic support.  

Knowing their business model is not sustainable, the USPS gives their top earners bonuses...  

Quoting sweet-a-kins:

Why won't republicans ACT to help FIX the Post Office


jcrew6
by Platinum Member on Nov. 19, 2012 at 8:20 AM


Quoting sweet-a-kins:

Why won't republicans ACT to help FIX the Post Office

"Expenses, however, continue to exceed revenue in part due to an overstaffed workforce".  Why is this solely a republican issue to fix? 

jcrew6
by Platinum Member on Nov. 19, 2012 at 8:26 AM


Quoting sweet-a-kins:

Why won't republicans ACT to help FIX the Post Office

[March, 2012]

The Congressional Budget Office estimates a postal reform proposal in the House would save about $20 billion through 2022.

The bill (H.R.2309) — introduced last summer by Rep. Darrell Issa (R-Calif.) — would eliminate Saturday mail delivery, close mail processing facilities, increase postal employees' contributions to their health and life insurance premiums, and allow the Postal Service to use nearly $11 billion in surplus retirement contributions.

CBO found the spending cuts would come mainly from moving to a five-day delivery week, saving as much as $2.5 billion annually by fiscal 2015.

The bill's provision to limit how much USPS contributes to employees' health and life insurance would save about $650 million in 2014, with potential savings increasing to nearly $1 billion by 2016, CBO said. Currently, the Postal Service pays 78.5 percent of the health insurance premiums and 100 percent of life insurance premiums. H.R. 2309 would limit those contributions to 70 percent for health insurance and 33 percent for life insurance premiums.

The bill also changes how the Postal Service prefunds its future retirees' health fund. Under current law, the Postal Service must make annual payments of about $5.6 billion to $11.1 billion in 2012, CBO said. The proposal would increase the prepayments in 2015 and 2016 but cut the payment amounts starting in 2017.

The Postal Service has outlined a five-year plan to become financially stable, but Postmaster General Patrick Donahoe has urged Congress to give USPS the authority to make services cuts and reduce its annual payments to the retiree health benefits. The agency is already moving ahead with cuts of more than 220 processing centers that will result in a loss of about 30,000 positions.

Should the Postal Service default on its payments for more than 30 days, Issa's legislation also would set up a Postal Service Financial Responsibility and Management Assistance Authority that would have a "broad mandate" to restructure the Postal Service.

CBO said it could not judge whether this new structure would be more or less successful than the current USPS management. However, it added, "because the bill would transfer an estimated nearly $11 billion to the Postal Service in 2012, CBO does not expect that USPS would be in a financial situation that required the new management authority to be created for the foreseeable future."

The CBO analysis is similar to its conclusions in a December 2011 report.

A Senate postal bill, sponsored by Sen. Joe Lieberman (I-Conn.) and three other senators, received a cost estimate from CBO of costing the government $6.3 billion over the next decade. That proposal included a provision to allow the Postal Service to create its own health plan, separate from the Federal Employees Health Benefits Program — a provision that is part of the USPS' five-year plan.

The Postal Service lost $5.5 billion in fiscal 2011 and expects to lose $17 billion by 2015.

RELATED STORIES

Issa introduces bill to reform Postal Service

Senators' USPS plan cuts staff, refunds FERS overpayments

USPS to shutter, consolidate more than half of mail-processing centers

USPS says piecemeal approach to cost-savings plan won't do

stormcris
by Christy on Nov. 20, 2012 at 7:23 AM

It is by proxy stimulus.

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