U.S. Postal Service May Be Forced to Close for the Winter
- Posted on September 5, 2011 at 6:27pm by
Becket Adams
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The United States Postal Service (USPS) is going to have to find a way to make up for hemorrhaging financial losses (which has already rendered them incapable of making a $5.5 billion payment to its employee healthcare plan by the Sept. 30 due date) or face the possibility of closing shop for the winter.
Their unique situation raises two questions: first, how did it come to this? Second, how should it be addressed?
Concerning the first question, the USPS has been thrust into this desperate situation in part because of the emergence of new technologies (i.e. cell phone, email, etc.). Modern-era tools have enabled literally millions of Americans to throw off their dependency on traditional courier-style communication. But this cannot the real reason that the USPS is waist-deep in financial ruin. (Bear in mind, they were able to weather the advent of the telegraph and the telephone; could email and texting alone really force the USPS out of business?)
Surely, there are other elements that have helped to inflict heavy financial losses on the government agency.
First of all, a 2006 law requiring the postal service to pay an average of $5.5 billion annually for 10 years to finance retiree health costs for the next 75 years has cost the USPS dearly and, as mentioned before, it has put them into a position where they will most likely default on their bills.
But what has really contributed to the decline of one of America’s oldest institutions is not just its failure to appropriately respond to marketplace competition but its paralyzing contractual agreements with—you guessed it—labor unions.
Currently, labor costs represent 80 percent of the agency’s expenses (as opposed to UPS’ 53 percent and Fedex’s 32 percent) and costs continue to rise and grow with the help of such incredibly, unthinkably harmful provisions as the “no-layoff” clause in union contracts.
Moreover, it has been discovered recently that the USPS has overpaid an estimated $60 billion into its employee pension plans.
You read that correctly. $60 billion. Extremely generous benefits, employees that cannot be fired, and $60 billion overpaid in pensions. That would explain the 80 percent labor costs.
“The situation is dire,” said Thomas R. Carper, the Delaware Democrat who is chairman of the Senate subcommittee that oversees the postal service.
“If we do nothing, if we don’t react in a smart, appropriate way, the postal service could literally close later this year. That’s not the kind of development we need to inject into a weak, uneven economic recovery,” he said in a recent New York Times article.
Therefore, after reviewing the situation, one could say with complete accuracy that the United States Postal Services has been, in effect, dismantled by a mixture of robust competition, debilitating policies endemic in their administrative offices and overly-munificent employee benefits.
Which brings us to the second question: how does one address these issues?
According to Business Insider, to avoid insolvency, postmaster general Patrick Donahoe is going to ask Congress to approve the elimination of Saturday delivery, close as many 3,700 locations, slash the number of sorting facilities to 200 from 500, and trim the agency’s work force by 220,000 people, from its current 653,000. (A decade ago, the agency employed nearly 900,000.)
Of course, the unions are protesting all of the above.
The post office’s powerful unions are angry and alarmed about the planned layoffs. “We’re going to fight this and we’re going to fight it hard,” said Cliff Guffey, president of the American Postal Workers Union, which represents 207,000 mail sorters and post office clerks. “It’s illegal for them to abrogate our contract.”
From many angles, cutting back on existing costs seems to be the only thing that the USPS can do in order to alleviate its financial burdens. It cannot simply increase its rates as the law prevents them from raising postage fees faster than inflation. But there are a few other things the postal service can try.
In a move that proves the entrepreneurial drive is not completely dead in America, the agency has vigorously proposed some methods which may help them raise additional capital, including gaining the right to deliver wine and beer, allowing commercial advertisements on postal trucks and in post offices, doing more “last-mile” deliveries for FedEx and U.P.S. and offering special hand-delivery services for correspondence and transactions for which e-mail is not considered secure enough.
Not bad ideas. Not bad at all.
As long as the USPS can deal with its union problems, while simultaneously implementing cost-cutting measures and new advertising ventures, they may actually be able to steer themselves back on the road to recovery.




















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Comments (309)
LibertyWon
Posted on September 5, 2011 at 7:50pmThe USPS spent the money on new buildings it could not afford, plane and simple. Let them sell off assets and consolidate like the private sector has had to do just to make ends meet. Pity? We the people have none in this case. Case closed.
Report Post »taxed
Posted on September 5, 2011 at 8:00pmWhat is the post office? I haven’t used that since I was a little kid, sending thank you letters to my grandpa. Adults use FedEx, UPS, etc.
http://conservativepoliticalforum.com/index.php?board=1.0
Report Post »mvpirisky
Posted on September 6, 2011 at 3:18amFYI…the USPS leases most of the buildings they operate out of.
Report Post »gunther444
Posted on September 6, 2011 at 12:26pmwith labor costs running at 80%, selling off buildings won’t fix the problem. Labor costs need to be reduced, or shut the inefficient bureaucracy down.
Report Post »229Mick
Posted on September 11, 2011 at 12:08pmYou spend $7 to send a letter via fedex rather than 50¢?!?! Adults are stupid.
That said, I think a HUGE part of the problem is that while we look at the post office as a company that delivers mail, a large section of our society sees it as a ‘jobs program’.
Report Post »iamHeidi
Posted on September 11, 2011 at 12:19pmThe building I work in is a Sectional Center. The Post Office has a deal that this building we all work in, pays $1/yr for 99 years. I hope you would contend that the 1 dollar per year for rent is not bad. Not bad at all. We have consolidated. MANY MANY people were ‘put out’ Some people who have 25-30 years in have had to change their ‘bids’ to include working overnight and with non consecutive days off. Many people have already had to relocate where they work, some commuting over 2 hours per day. Changes have already been happening within the postal service. Remember too, the postal service is like a business, in that the money they get, comes from sales and service. Taxpayers DO NOT fund the Postal Service, only by buying stamps, Priority Mail, Express Mail, etc. We pay into health care and retirement. If i were to retire next week I would get a whopping retirement check for approximatley $800.00 AFTER paying into healthcare. It all sounds good on paper and in debates, but really, postal workers are not ‘up there’ in so far as most other companies retirement benefits, ect.
Report Post »NOTSNOWED
Posted on September 14, 2011 at 10:57pmI am a follower of the Tea Party, but after reading some of the remarks here, I am sure that there are an equal number of idiots on both red and blue sides. Get some facts before you spout. 1. the Post Office is financed with money made by selling sevice and stamps. NOT TAXES. 2.Take into consideration that the executives pay is part of the 80%. And they make a butt load of money, and their ranks have increased by 24% in the same amount of time the hourly workers has decreased by 34%. 3. The USPS delievers the parcels that UPS and FED X don’t want to take the time with. It’s called “the last mile”. Do you think that you would be getting the same sevice from them at the same rate if the USPS didn’t do it for them? 4. The Gov. has used the USPS as it‘s personel piggy bank since the 80’s. All profits went into the Treasury. Until 06 they paid the retired Vets pension out of their profit rather then the treasury. Then the Gov. did them a favor and returned it to the treasury, but then they required the USPS PRE FUND it’s pensions for the next 75 years and get it done in 10 years time. They‘er prefunding people who aren’t even born yet!! Get a clue people, the internet is great, but it’s wide open, to ANYONE. Wouldn’t it be easier for the Gov. to keep tabs on us if we were all forced to use it rather than a private letter??
Report Post »Theleftisda
Posted on September 5, 2011 at 7:48pmI will never use the USPS,no public transportation they are all racist organizations at least they are in California,if you get on a city bus in this state you must be out of your mind!
Report Post »since affirmative action bus crashes have went up
A-..43 %
B- 4.3 %
C- 43.0%
D -430.0%
E- 4300.0%
and the answer is not A,B,C or D
oriondma05
Posted on September 5, 2011 at 8:13pmNot trying to dispute. Do you have a link? I tried googling and couldn’t find. I’d really like to read about that.
Report Post »Theleftisda
Posted on September 5, 2011 at 9:21pmTrends: Data Tables 1-34 and Graphs 1-8 (759 KB)
Report Post »Joisey
Posted on September 5, 2011 at 7:48pmCongress will bailout the USPS. They don’t get franking privileges with FedEx or UPS, so you know they‘ll be throwing our money at the latest gov’t sinkhole to open up.
Report Post »SeekerEmerald
Posted on September 8, 2011 at 9:28pmThanks to the APWU, the custodians can earn as much as 24.51 per hour. For pushing a broom, or cleaning a toilet, or ??? Custodial labor can typically be found for around $10 an hour.
Compare that to an Electronic Technician, the highest paid of the blue collar postal workers, at 30.26 per hour. Private industry is typically $20 to $35 per hour for this kind of work (at least in the DC area…) I turned down a higher paying ET job with a company in favor of the USPS, due to job security. I gave up about 20% of income. I STILL think I made the right choice, but the point is that we pay less than the industry for SOME jobs, and way too much for other jobs.
Certainly the USPS could contract out the custodial work for much less, but the APWU will not allow that. Score one for the union, at least until the USPS goes under…
Some mail processing supervisors make about $20 an hour. Yes, less than some custodians…
There are about 45 managers and supervisors in my building. (we have hundreds of blue collar employees.) Of those, only 1 is making over $109,000. He is one of less than about 30 managers nationwide that have that potential. Most of the supervisors and managers are making much much less than 99,000, again, some as low as 42,000.
The moral of the story is the union has played a big part in where we are now. They are not 100% at fault, of course, but neither are they blameless.
Report Post »michael48
Posted on September 5, 2011 at 7:47pmshut the SOBs down and take them out…Hoffa Speak…next
Report Post »Wolf
Posted on September 5, 2011 at 7:46pmGet the unions out of the Postal ‘Service’ and put it on par with other companies. And get rid of those horrendous retirement packages.
Report Post »But that isn’t going to happen: Barry The Turd can’t afford to let a good crisis go to waste, so he’ll bail them out as he did the banks and car makers.
Once again, American labor foots the bill for union scags.
iamHeidi
Posted on September 6, 2011 at 4:57amThat horrendous retirement package? And what does that encompass? I have worked for the postal service since 1987. If I were to retire in 2014 when I am eligible, I would gat a whopping retirement check of approximately $800/month. That is with health bennies coming out too. Some people I work with have been there 30 years and can not retire yet because of the retirement package. It’s sad people think we make a zillion dollars with bennies up the wazoo, when in reality, it ain’t all that.
Report Post »cutrite
Posted on September 7, 2011 at 8:10amThanks for the good info imheidi. I do have that opinion that your retirement package hurts the usps. I have know retired postal workers that seem to be living pretty good on their package. I do have many friends who are postal workers right now and I know some of them are planning to retire early. So why do some retire early? If it is how you say, why are there many that do? Are they just saving large and preparring themselves the right way? When you say you can retire after 27 years and recieve 800 a month, how much will you pay for your health insurance out of that? Do you put any of your own money into this retirement fund each paycheck? Or is the usps paying 100% of your retirement?
Report Post »Billd
Posted on September 7, 2011 at 4:01pmThis is exactly the reason why Government workers should NOT be allowed to unionize. Government workers are supposed to be Civil Servants and not get over paid and over benefited on OUR tax dollars. Unions should NOT be allowed to negotiate over our tax dollars.
Report Post »CURTWALL
Posted on September 5, 2011 at 7:36pmTurn the USPS over to the private side and eliminate the Department of Energy and we would have a great start in cutting government spending !!!
Report Post »lonewolf57
Posted on September 5, 2011 at 7:52pmYep.I agree.One is worthless,one has a worthy goal.One needs government funding,one doesn’t.
Report Post »Therightsofbilly
Posted on September 5, 2011 at 7:59pmAgree, but get rid of the Department of education also.
Report Post »CatB
Posted on September 6, 2011 at 12:28amTo all above and more … A GOOD START!
TEA!
Report Post »nowhereman
Posted on September 6, 2011 at 4:08amYa, how bout the Department of Agriculture? Their bigger than the other three combined, we could save money by unloading 110,115 jobs. The others only add up to about 40,000.
Report Post »iamHeidi
Posted on September 6, 2011 at 4:59amThe postal service relies on the sale of stamps, priority mail, etc for it’s revenue. NOT GOVT FUNDING
Bill Rowland
Posted on September 6, 2011 at 8:54pmDon’t forget EPA and ATFE
Report Post »420 Patriot
Posted on September 8, 2011 at 2:50pmRon Paul would like to shrink the gov down to what the founders wanted. If this was to happen, then we would see a privatized post office. Ron Paul 2012. And do not listen to any of the MSM, even Fox, on Ron Paul. Go to http://www.ronpaul.com/category/ron-paul-revolution/ and learn about the man and his ideas. I think he is the Thomas Jefferson of our times.
Report Post »Shasta
Posted on September 5, 2011 at 7:36pmThe unions got another kill.
Report Post »OlefromMN
Posted on September 5, 2011 at 7:35pmIt would be a very interesting experiment. But if we are to be intellectually honest, we would need to realize the post office is called for in the constitution. It needs reform, but can not be eliminated.
Report Post »whiskeybomb
Posted on September 5, 2011 at 7:39pmNot entirely correct. It is authorized but that doesn’t mean that it has to exist within the confines of the federal govt. If We the People authorize Congress to remove it it can be done. The Constitution just allows it to be provided by the federal govt.
Report Post »crackerone
Posted on September 5, 2011 at 7:40pmGood riddence PO. Take BO with you! We have had enough. Push came to shove!
Report Post »OlefromMN
Posted on September 5, 2011 at 7:44pmDon’t know how others read “to establish post offices and post roads”, but if that isn’t giving the federal control over post offices, we need to be worried about the second amendment.
Again, reform not elimination.
Report Post »buckybone
Posted on September 7, 2011 at 10:08pmThe Constitution gives the Congress the power to “establish Post Offices and Post Roads”. They eliminated post roads, they can do the same for the USPS.
Report Post »Velkro
Posted on September 5, 2011 at 7:31pmCan’t a business do a reverse-type strike on the unions? Unions strike when a company doesn’t agree to their demands in hopes that they cripple the company enough to give in. What would happen if the Post Office did just close down because they no longer had any money. Then the union members don’t get paid because there is no work. Then the post office can say, “You want to come back and work? Then rethink some of your benefits. Until then, the doors remain closed and you people are out of a job.”
Report Post »macpappy
Posted on September 5, 2011 at 7:37pmIt’s called chapter 11 bankruptcy
Report Post »starman70
Posted on September 5, 2011 at 8:56pmBankruptcy! It can happen in the private sector but not a “Government agency”. Privatize, cut salaries, remove all postal unions.
I have known some fine postal employees but I also have had dealings with some of the most obnoxious, irrascible, hateful and snotty people. Because they are union members, no matter how they act, they cannot be fired. The word “Service” is a complete misnomer, there is no service there any more. Just a group of lemmings going around, moving like snails and drawing too much pay for too little work and participating in an outrageous union driven retirement package.
Report Post »hauschild
Posted on September 5, 2011 at 7:29pmThe USPS should have been closed 30 years ago. Instead, we’ve got millions more pensions to pay for. Our country is being run by third-world minds.
Report Post »TulsaYeeHaw
Posted on September 8, 2011 at 5:50pmNO YOU DON’T. The postal service is funded completely by itself, with congress regularly taking its money. But they don’t tell you that, because then you’ll be mad at me, a postal employee, instead of them, the ones who created this mess.
Report Post »CONGRESS PUT US IN THIS MESS PEOPLE.
jungle J
Posted on September 5, 2011 at 7:27pmThis is exactly what is happening with our federal and state governments. Let the post office close. America will use Fedex and UPS.
Report Post »Al J Zira
Posted on September 5, 2011 at 9:10pmYou might want to check what a letter costs to send via UPS or FedEx before you take that leap. If either of those companies was to fill the shoes of the PO I would hope it’s FedEX. UPS is already unionized and would eventually lead down the same road.
Report Post »Hugie 59 PA
Posted on September 5, 2011 at 7:26pmMaybe it’s time to let the private sector operate our postal service. They would turn the service into a profit making operation and be able to motivate employees by providing incentives they coudn’t achieve under the present system.
Report Post »iamHeidi
Posted on September 11, 2011 at 12:33pmthe USPS is a non profit. Any money it made, WENT TO THE GOVT.
Report Post »macpappy
Posted on September 5, 2011 at 7:25pmShut it down….i have a extensive stamp collection that will skyrocket in value.
Report Post »YepImaConservative
Posted on September 5, 2011 at 7:21pmWhen I was with FedEx I would have loved to give the USPS all my LL Bean deliveries. Got tired of listening to all those Liberals get orgasms when they recieved their Alpaca Jackets, Birkenstocks and Moccosins!
Report Post »YepImaConservative
Posted on September 5, 2011 at 7:26pmWhat? You can’t write the other word for “Happy Ending?” Lmao… sheesh!
Report Post »lonewolf57
Posted on September 5, 2011 at 7:16pmWell if I were the Post Master General,and people wanted their jobs….here’s the plan.A 35% across the board PAY CUT,immediately.Employees no longer get generous holiday benefits.Christmas,New Years,4th of July.Memorial Day,and Labor Day OFF,ONLY.No more MLK,Presidents Day,or any other bullcrap lazy days off with pay.Just like the rest of us.
Report Post »Employees of the USPS pay 25% of their healthcare costs,immediately.Pensions are 401k’s or any other voluntary plan.No guarantees!
And that’s just for starters.
I love the USPS.I’m a Ebayer.I know how quick and efficient they are.And they ARE the BEST.But times change.
Time to get with the program!
oriondma05
Posted on September 5, 2011 at 7:23pmI agree. It just shows like the teachers unions and auto-unions, even in the face of their own demise, unions are unwilling to do what is necessary to help a business survive. They’ve contracted themselves out of the job again.
Report Post »macpappy
Posted on September 5, 2011 at 7:26pmNot an option with union employees, can’t layoff, or fire, must go under. Only the unoin would see a business go under before taking a cut.
Report Post »TulsaYeeHaw
Posted on September 8, 2011 at 5:56pmI am a letter carrier here in Tulsa,
So tell me lonewolf:
What is my pay?
What are my benefits?
What is my nonexistant pension?
Do you spend all day outside in 110 degree weather with 89% humidity?
Do you fight idiots in traffic, dumbasses who don’t watch their dogs or kids?
Do you work outside all day in the snow?
I think I earn my $25 per hour salary and TSP (it is the same as a 401k)
And our health benefit costs ARE rising, we will soon pay more than 25%.
None of you bitching have any idea what the hell you’re even talking about.
TELL ME, I would LOVE to know.
Report Post »SeekerEmerald
Posted on September 8, 2011 at 8:55pmI normally agree with you, loneworlf, but in this case, you are misinformed, as are a LOT of people. The Press is not helping, as it is putting forth false information as well..
My share of my health benefits will be the same as the federal workers either this year, or the next. It was 10%, but it is moving to 20% in small steps each year.
When I retire, the USPS will pay exactly ZERO towards my health benefits. The typical Blue Cross plan costs around 22,000 now. I pay almost 20% now (not sure the exact amount, maybe 18.5%??)
After I retire, I can keep my plan, but I have to pay 100% of the premiums.
Here is what anyone hired after Jan 1 1987 will get under FERS for USPS:
FERS Basic Annuity Formula
Under Age 62 at Separation for Retirement
Or
Age 62 or Older With Less Than 20 Years of Service
1 percent of your high-3 average salary for each year of service
Age 62 or Older at Separation With 20 or More Years of Service 1.1 percent of your high-3 average salary for each year of service
If I retire at 62, with 40 years of service, I’ll get 44% of the average of my highest 3 years. If 44% for 40 years of service sounds like a gravy train…
Don’t forget I am having a percentage of my check deducted to pay for this “benefit”
You propose no retirement benefits? Is this just for the USPS, or would you apply this to the Fed Gov as well? What about private business. same deal?
Report Post »ColoradoMaverick
Posted on September 5, 2011 at 7:12pmThis is exactly what is happening with our federal and state governments. Let the post office close. America will use Fedex and UPS. The only chance the postal service has to survive on it’s own, as it should (without bailouts) is to let the private sector take it over and eliminate the unions.
Report Post »Exrepublisheep
Posted on September 5, 2011 at 7:23pmOnce they (somehow) get the 60 BILLION back…
Report Post »oriondma05
Posted on September 5, 2011 at 7:09pmBut it’s about the CHILDREN!! Don’t you even Republicans and Tea Baggers care about the CHILDREN!??!
Oh wait, we’re talking about a different section of government unions this time.
Who can we use as a human shield this time?
Report Post »ZZBlueComet
Posted on September 8, 2011 at 6:15pmI love how the USPS have a recent commerical claiming that the USPS does not use any of your tax dollars – yet get bailed out with Federal money, where does that money come from……..uh, tax dollars. What lies as usual. I work with mail at my firm, deal with lots of mail – try to use FedEx and UPS for docs etc., I cringe at the thought of trying to call the USPS or even get a local post office to even answer the phone, much less help me. Call FedEX and/or USPS, you can get a human in about 15 seconds and helped completely. If FedEx or UPS ever took over daily mail, they’d fix the problem and make 3x more effiecent.
Report Post »Marine 1
Posted on September 5, 2011 at 7:08pmAbout freaking time! The USPS has become just another bloated government operation. You know they will want US to bail them out. We aren’t getting bailed out so why should they? Cut it loose and then we won’t have to wait in those long dam(n) lines anymore. (Get it?) Hey, the Pony Express Riders were faster and more dedicated than the schmucks I’ve had to deal with at the post office recently. Privatize the operation and get rid of all the “dead wood” now. Can’t let a good crisis go to waste now can we? For Freedom. Semper Fidelis
Report Post »TulsaYeeHaw
Posted on September 8, 2011 at 5:57pmNo, WE DON’T WANT A BAILOUT.
Report Post »We want the congress to stop screwing with our money. That 60 billion OVERPAYMENT was because CONGRESS MADE US DO IT!!!!!!
dwh320
Posted on September 5, 2011 at 7:07pmUnions have destroyed almost every industry they infected. They are like cancer and must be dealt with as such. Disband ALL Unions. Start by revoking ALL union contract with ALL government agencies.
Report Post »13th Imam
Posted on September 5, 2011 at 7:33pmThis was not Just the unions fault. Like every Public union they negotiate with an entity that doesn’t actually pay the bills. Any time that the Taxpayers don‘t have a seat at the bargaining table the Politicians don’t give a rats a++ how much the bill is. Lawyers are the Problem, on both sides of the negotiating table.
Report Post »Spedden
Posted on September 5, 2011 at 7:06pmWhy did they not stop Sat. service 2 years ago when they frist talked about. In canada cut service to 3 days a week to save money
Report Post »Chuck Stein
Posted on September 5, 2011 at 7:23pm3 days a week is enough: one half of the routes get mail on Monday (even on Federal holidays), Wednesday & Friday. The other half of the routes get mail on Tuesday, Thursday & Saturday. Like you can’t wait an extra day for your catalogues? If it is urgent, then pay for express mail (which would dovetail with the “last mile” provided for FedEx).
Report Post »NEAF
Posted on September 6, 2011 at 8:08amIt is common sense. Which mean they are not going to do it. If they cut the days means they have to receive a pay cut.
Report Post »YepImaConservative
Posted on September 5, 2011 at 7:05pmI remember the days when you could put cash in a Christmas card and it would actually arrive with the cash still in it!!
Report Post »oriondma05
Posted on September 5, 2011 at 7:11pmI recently flew to California for a wedding. I’ve been giving silver as gifts lately. I was so nervous going through TSA with silver coins in my backpack.
Report Post »YepImaConservative
Posted on September 5, 2011 at 7:24pmMy address is… and oh, send the silver via FedEx, lol. Don’t trust the unionized UPS.
Report Post »oriondma05
Posted on September 5, 2011 at 7:32pmHahahhaa…. It’s hard to think that I started buying silver at $17/ounce, which was around $20/ounce per coin with markup. Christmas 2010, I bought 10 oz for mom/dad, 10 for brother, 10 for sister. Cost me about $950. Can’t do that now.
Report Post »mailman
Posted on September 5, 2011 at 7:03pmLabor cost’s are not just Union caused.There is 1 postal manager for every 8 workers.no figure the labor costs.You think the PO will get the 55 Billion they overpaid back??
dwh320
Posted on September 5, 2011 at 7:12pm8 to1? Why do so many Union workers need to have their hands held so much? Are they so incompetent that they must be watch like children?
Report Post »macpappy
Posted on September 5, 2011 at 7:22pmThats because the unions demand it so. Do you think the USPS hire managers because it wants to?
Report Post »It is totally because union labor is too expensive. Fire them all.
Theleftisda
Posted on September 5, 2011 at 7:35pm@dwh320
Report Post »Yes it’s called affirmative action/in the last twenty years in California not once has a white man delivered mail to any one of my properties.
SeekerEmerald
Posted on September 8, 2011 at 9:06pmAnyone NOT a blue collar worker is considered management for purposes of calculating this ratio. The industrial engineer that designs the layout of the equipment, the Nurse (at some larger faciities,) all the marketing people, all considered executive and administrative or EAS. All EAS are considered managers or supervisors for the purposes of this ratio. In Maintenance, the ratio targetted at 1 supervisor for each 21 employees. Above that supervisor is a manager. That manager may supervise 2-4 supervisors, in addition to the other tasks (s)he may have. Nobody above that supervisor is considered a worker, but considered a manager. There can be many levels before one reaches the PMG, but all are counted as part of that ratio. When I used to supervise, I had 27 employees at on point in time. If you divide all the EAs in my plant, the ratio may be closer to 10 to 1, but no supervisor had less than 15 employees. The ratio is misleading. It sounds about right, but it is a misleading number.
Report Post »I.Gaspar
Posted on September 5, 2011 at 6:58pmGovernment involvement in running anything plus the effect of civil worker guaranteed jobs and union control = you are out of business.
Report Post »One of the few guarantees in life.
So glad obama and crew are taking control of everything now, dumbocrats?
johnsell
Posted on September 5, 2011 at 9:23pmIt’s the same story no matter who runs it, it involves a balanced budget and ensuring that income is greater than outgo. They obviously do not apply business principles to anything in the government as they seem to have the perception that they can always raise taxes or the delivery rate charges. They need to take a serious look at their operation and either get competitive or get out of the business. If someone needs something delivered and is willing to pay the price, someone will come up with a workable system provided they aren’t hamstrung by government regulations.
Report Post »Ponyexpress
Posted on September 5, 2011 at 6:57pmShut er down!
Report Post »All they deliver is junk mail.
Who would care?
Shasta
Posted on September 5, 2011 at 7:44pmWe would still need congress to get involved to shut it down. Like these idiots in Washington could even handle turning off the lights.
Report Post »FireWolf
Posted on September 5, 2011 at 6:55pmGoodbye boondoggle! Good riddance!
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