U.S. Postal Service requests layoff of 120,000

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U.S. Postal Service requests layoff of 120,000
NEW YORK (BDCi) – The United States Postal Service (USPS) is seeking to break union contracts of 120,000 workers. Besides the layoff, existing workers could soon have their federal health-benefit and retirement programs replaced, according to draft proposals acquired by CNNMoney.

The USPS is appealing to Congress to lay off the 120,000 workers. The service has about 560,000 full-time, non- contract workers.

Although, the USPS claims it needs to eliminate 220,000 positions, or nearly 40[d1] % of its staff by 2015, only 100,000 of those positions can be made through attrition. The other 120,000 must come from layoffs, according to the documents.

“To restore the Postal Service to financial viability, it is imperative that we have the ability to reduce our workforce rapidly,” the USPS wrote in the CNN-obtained report.

The USPS is also asking Congress to change legislation that mandates postal workers to get federal health care and retirement benefits. Instead, the Postal Service would replace them with its own benefit plans.

Currently, postal employees participate in the Federal Employees Health Benefits program, the Civil Service Retirement System and the Federal Employees Retirement System. If given congressional approval, the U.S.P.S. would replace those with new plans that would save money, while offering comparable benefits to employees, according to the documents.

In fiscal year 2010, the Postal Service suffered an $8.5 billion net loss, compared with $3.8 billion the prior year. Last quarter, the U.S. Postal Service posted a loss of $2.2 billion. Its fiscal year ends in September.

By: Adrianna Lobo
Source: CNN
August 12, 2011
8:00a.m. P.D.T.

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