Mail Groups Can Live With Delivery Cutback
Given the dire state of U.S. Postal Service finances and the possibility of insolvency, mailer groups were open to the idea of eliminating Saturday mail delivery if it could truly cut expenses.
But doing so would require an act of Congress and nobody expected that to happen during an election year. The earliest they see anything happening is 2011.
According to news reports, the USPS said it could go broke if Congress does not give the green light on five-day delivery and change the way it funds retiree healthcare benefits.
Cutting a delivery day would reportedly save the USPS $3 billion a year in expenses. On top of that, the USPS is required every year to pre-pay $5.4 billion to the U.S. Treasury to cover healthcare costs of retired employees until 2016.
