Postal Service Negotiates Tentative Contract with Major Union
The USPS deals with the challenges of competing with the private sector while continuing to operate under federal regulations and congressional oversight.
Other issues challenge the Postal Service’s future:
• Created in 2006 under stronger economic conditions, the Postal Accountability and Enhancement Act requires the Postal Service, unlike the private or public sector, to prefund retiree health benefits. This equates to an average of $5.5 billion in cash flow every year through 2016, in addition to the $2 billion it annually pays for current retirees. The Postal Service has asked Congress to restructure retiree health benefits payments to “pay-as-you-go,” comparable to what is used by the rest of the federal government and the majority of the private sector.