Economic slowdown cutting Postal Service's bottom line
WASHINGTON - The economic slowdown means business is off sharply for the post office, Postmaster General John E. Potter said yesterday.
Potter said mail volume could fall as much as 9 billion items in the current fiscal year. Total mail volume last year was over 212 billion pieces.
While financial details for the year won't be available until November, Potter has said the agency could face a loss of more than $2 billion.
The size of that potential loss requires steps now, including reducing work hours, Potter told the monthly meeting of the governing board.
Also, the agency is offering early retirement to thousands of clerks, mail handlers, and supervisors. The agency began the fiscal year last Oct. 1 with 684,762 career employees, down from 696,138 a year earlier.
Postage rates rose a penny in May to 42 cents. Another increase is expected next May, with the amount to be disclosed in February. Any increase is limited to the rate of inflation.
Last year the post office ended the year $5.1 billion in the red, about $300 million less than projected. The loss was a result of a required contribution to set up an employee retirement health benefits fund. Without that requirement, the agency would have ended the year with a surplus. 