USPS Reports $1 Billion Operating Profit in First Half of Fiscal Year
So Why is Postal Management Cutting Service?
05/09/2014 - Midway through the fiscal year, the USPS is reporting a $1 billion profit from operations, with $261 million of that amount from the second quarter.
But you won’t read that in the mainstream media. Instead, you’ll hear – once again – that the Postal Service suffered losses of billions of dollars.
The truth is that the Postal Service’s well-publicized financial crisis is a manufactured one. It is the result of the congressional mandate that the Postal Service, alone among all public agencies and private companies, be required to pre-fund future retiree health benefits.
The positive balance sheet continues the steady progress in the finances of the Postal Service, which has been operating at a profit since October 2012. A dramatic increase in online shopping has sparked an explosion in package volume and revenue, while a gradually rebounding economy has stabilized letter revenue.
“All of this good news exposes an ugly truth,” said APWU President Mark Dimondstein. “Postal management’s zeal for cutting service and outsourcing operations in a thinly-veiled attempt at piecemeal privatization.”