USPS’ Donahoe: Survival Hinges on Law Changes
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Conceding that some of these losses can be attributed to Americans’ changing modes of communication, Donahoe stressed “our losses are the result of an inflexible business model due to the laws that govern the Postal Service.” He cited the statutory requirement, in place since 2007, to prefund retiree health benefits (RHB) in amounts of approximately $5.5 billion per year. Noting that no other entity, public or private, is burdened with this responsibility, Donahoe said that the Postal Service showed a positive net income in each of the four years before RHB was imposed. But, in each of the four years since, “we have seen billion-dollar losses.”
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