U.S. Postal Sevice buys out 30,000 employees!
The United States Postal Service seeks to save up to $500 million in 2010 by offering close to 30,000 employees buyout offers. The federal agency has already cut over 100 million work hours in 2009 equivalent to 57,000 postal jobs.
Washington employment law attorneys-United States Postal Service to offer early retirement to mail service workers who are members of two postal workers unions.
Washington, D.C.–Officials with the U.S. Postal Service (USPS) http://www.usps.com/, the federal agency charged with delivering the mail has around 650,000 employees and posted a $2.4 billion loss for the most recent quarter. The USPS announced it will continue to find ways to cut costs to maintain its services. No tax dollars are provided to America’s mail service and the federal agency relies on postage, products, and services sales to fund its daily operations. The U.S. Government mail provider cut over 100 million work hours so far in 2009 which equates to 57,000 jobs. A nationwide hiring freeze and stoppage of new construction of postal facilities and locals are some of the numerous efforts the federal agency has enacted to stay afloat. Recent news reported in the Wall Street Journal revealed the USPS is still drowning in debt with a potential $700 million cash shortage at the end of it’s fiscal year on September 30, 2009.
The end of September is quickly approaching along with a $5.8 billion pre-fund retiree health benefit bill which is due at the end of the fiscal year. The one-time early retirement offer to current postal workers was presented to employees in the American Postal Workers Union and the National Postal Mail Handlers Union. The early retirement proposal offered to these union workers states retirement or resignation by September 30, 2009, will offer a $10,000 January 1, 2010 payment and an additional check for $5,000 on October 1, 2010 which is the beginning of the 2011 fiscal year. The National Association of Letter Carriers and the National Rural Letter Carriers’ Association members are not eligible for the buyout offer by the federal government. Officials with the USPS claim the number of addresses in the United States increases by 1.5 million per year. The buyout is being offered to workers in mail processing facilities where fewer man hours of labor is needed because of technological advances and mail reduction due to the recession.
Washington employment law attorneys information by legal news reporter Heather L. Ryan.