Friday, October 7, 2011

The USPS having problems with Unions

The United States postal service has been a very profitable and successful organization for many years, but in recent years it appears that unions have The USPS in a strangle hold.  The USPS has tough competition with UPS and FedEx and is starting to fall behind because UPS and FedEx have managed to avoid harsh Union regulations.  The USPS is struggling with a massive deficit in mail volume.  Most companies in this situation would lay off employees to remain profitable, but due to Union restrictions managers are not allowed to lay off employees so there for the USPS is forced to spend 50 million dollars a week to pay employees to literally sit in a room and do nothing because there is simply not enough work needing to be done.  The average postal employee makes 85,000 dollars a year which is way too much to even make since.  The only reason The USPS is able to keep their prices at a competitive level is because they have the advantage of the government, a home field advantage.  The government allows the USPS to have a slight monopoly and passed legislation allowing the USPS to forgo $4 billion in payments to retiree health benefits.  The ultimate goal for the US government is for the USPS to get back on top as the main postal service and free from government aid and Union restrictions.

-Jack Leonard

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