The Post Office building on the Downtown campus Tuesday was one site of a nationwide rally meant to generate public support for a federal bill that could avert an immediate financial crisis for the U.S. Postal Service.
Earlier this month, Postmaster General Patrick Donahoe informed a Senate committee that unless some form of legislation was enacted, the Postal Service would not be able to make a congressionally mandated payment of $5.5 billion that goes toward retiree health benefits.
House Bill 1351, introduced by Rep. Stephen Lynch, D-Mass., would allow USPS among other things to use surplus pension funds to cover the $5.5 billion and avoid default.
“We’re the only federal agency that has to pay $5.5 billion to fund our retirement 75 years out so we’re paying for retirement now for people who haven’t been born yet,” said rally participant Lamont Green, a member of the American Postal Workers Union.
In 2006, Congress passed the Postal Accountability and Enhancement Act, which required USPS to set up a fund that would cover 75 years worth of retiree health benefits through a yearly payment of $5.5 billion.
Postal Service workers and supporters held rallies in every congressional district across the U.S. at 492 locations Tuesday to inform the public about the cause behind the Postal Service’s financial woes and urge people to support H.R. 1315, according to the American Postal Workers Union website.
Rally participants have been handing out flyers across the nation to let people know the issues they are fighting against.
Since 2007, USPS has reduced its career workforce by 110,000 employees and has reduced costs by more than $12 billion, according to the agency’s website.
According to the APWU website, H.R. 1351 would not only prevent the financial collapse of the Postal Service but would also pull the Postal Service out of bankruptcy without delaying mail delivery, laying off thousands of workers, cutting wages, closing post offices or closing mail processing facilities.
“The Postal Service is only a federal agency when it comes to giving money out, but we’re not (considered) federal when it comes to anything else.” Green said. “We don’t get money from taxpayers, we’re self-funded, but they want us to continue to pay $5.5 billion a year. In essence to that, we turn a profit every year but our profits are sucked up by that $5.5 billion.”
Rudy Santos, president of the Mail Handlers Union for Arizona said the Postal Service was at its high peak in volume in 2006.
“Right after 2006 the volume started going down and with it going down the money wasn’t there any more, and for us to have to pay $5.5 billion a year puts a great strain on the Postal Service,” Santos said.
The goal of the H.R. 1351 isn’t to cost the government more money, but to gain control of the money they’ve overpaid into financial pension accounts, said Sam D’ambrosio, vice president of National Postal Mail Handlers Union and the SAPS website.
“We’re not asking for a bailout, that’s our money,” D’ambrosio said.
Reach the reporters at mctaeata@asu.edu and kmmandev@asu.edu
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