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Postmaster Offers Extreme Cost-Saving Measures

By Scott Sarvay
September 6, 2011 Updated Sep 6, 2011 at 6:01 PM EDT

WASHINGTON (Indiana’s NewsCenter) - The Postmaster General appears before Congress Tuesday with extreme cost-saving measures.

Currently the Post Office is running at a $9.2 billion annual deficit and doesn't have the $5.5 billion it must pay for retiree health benefits due at the end of this month.

The Postmaster told members of Congress that he would like to end Saturday mail delivery, close 3,700 post offices and lay off 120,000 workers.

Enacting these cost-saving measures could be difficult.

The law requires delivery on Saturday and delivery to 150 million addresses nationwide.

Not to mention union-friendly contracts prohibit the agency from laying off workers.

Postmaster General Patrick Donahoe says, “We must be very aggressive in realigning the operation of the postal service to match the declining mail volumes."

Without action, some worry, the Post Office could shut down by winter.



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