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Who Next: Postal Service asks Congress to allow 120,000 layoffs, Overhaul Benefits
Hundreds of thousands of postal workers could soon lose their jobs, or face drastic changes to their benefits.
According to documents obtained by CNNMoney, the United States Postal Service is appealing to Congress to remove collective bargaining restrictions in order to lay off 120,000 workers. It also wants congressional approval to replace existing government health care and retirement plans.
The post office claims it needs to eliminate 220,000 positions, or more than 30% of its staff by 2015, but only 100,000 of those positions can be made through attrition. The other 120,000 must come from lay offs, according to the documents.
“To restore the Postal Service to financial viability, it is imperative that we have the ability to reduce our workforce rapidly,” the USPS wrote.
The USPS is also asking Congress to change legislation that requires postal workers to get federal health care and retirement benefits. Instead, the Postal Service would replace them with its own benefit plans.
Currently, postal employees participate in the Federal Employees Health Benefits program, the Civil Service Retirement System and the Federal Employees Retirement System. If given congressional approval, the Post Office would replace those with new plans that would save money, while offering comparable benefits to employees, according to the documents.
In the documents, the USPS lays out the harsh reality of the situation: mounting losses, declining mail volume due both to the recession and the shift toward digital alternatives, and the need for drastic measures to cut costs.
“The Postal Service is facing dire economic challenges that threaten its very existence and, therefore, threaten the livelihoods of our employees and the businesses and employees in the broader postal industry and overall economy” a document on workforce reduction said.
It’s no secret the USPS has been struggling, but it’s a move that’s likely to put Postal Service unions up in arms. USPS mail volume declined 20% in the four year period through the Fiscal Year 2010 resulting in net losses of over $20 billion.
In fiscal year 2010, the Postal Service suffered a $8.5 billion net loss, compared $3.8 billion the prior year. Last quarter, the U.S. Postal Service posted a loss of $2.2 billion. Its fiscal year ends in September.
In July, the Postmaster General Patrick Donahoe released a long-awaited “post office study” of nearly 3,700 potential closings in all 50 states and Washington, D.C.
In its appeal to Congress, the USPS warns of an increasingly difficult situation — one that has the long standing organization “facing the equivalent of Chapter 11 bankruptcy.” In the document, the Postal Service warns it will be insolvent next month.
“As we continue to review our volume, revenue and financial projections for fiscal years 2012 through 2015, it has become apparent that our financial situation is becoming even more precarious.”
By Laurie Segall @CNNMoney August 11, 2011: 8:52 PM ET
America, Where Are The Jobs You Promised… Really?
The following article caught my attention, as we continue to talk about the number ONE issue for Americans, and resolving the economic crisis that continues to unfold in this country. politicians and economist continue to say we are in a recovery. Well I think most of us still beg to differ across the country. Obviously the direction of this article, in an interview with Paul Zane Pilzer, is to point out the clarity in why becoming involved in a direct sales marketing opportunity right now may be, not only the obvious choice, but the only choice for American’s wishing to get back on the road to prosperity in the coming decade.
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Professor Paul Zane Pilzer has kept a watchful eye on the direct selling industry for more than 30 years. In the 1990s, the renowned economist who served in two White House administrations predicted that network marketers would help make the then-emerging $200-billion health and wellness channel the next trillion-dollar industry. The success of companies such as Herbalife, Medifast, Monavie, Amway, Nu Skin, USANA and Blyth are helping to confirm Pilzer’s theory.
As the current economic crisis continues to take a toll on people around the world and unemployment rates steadily rise, direct selling may be the answer to a shrinking job market. Pilzer warns that too many people today see unemployment as part of the economic cycle—that when the economy recovers, employment will naturally go up.
However, unemployment is not a macro-economic problem, he says. It is a micro-economic issue, typically related to a skill deficiency on an individual level. “The question lies not in economic recovery but employment recovery,” says Pilzer, who has written nine bestsellers. “We have a massive social problem. What are we going to do with 30 million people who are now permanently unemployed? The No. 1 social need in the United States right now has nothing to do with the economy.”
The real challenge is to replace lost jobs with new earnings opportunities and provide much-needed training. The jobs that baby boomers and Gen Xers trained for years ago have disappeared. Technology has replaced millions of workers and demanded new skills that too many older Americans just don’t have. “Instead of focusing on new methods of training, our politicians and news media are looking at unemployment and the economic recovery as linked—and they are not because most of the unemployed people today are skills-deficient.
If they are over 50 years old, they probably don’t touch-type or e-mail, and that doesn’t work in today’s economy.” So what happens to those displaced workers? Direct selling may have the answer. The direct selling business model has always had a competitive advantage in the training that it offers, both in business and personal skills. It allows people to be retrained while they pursue something new. It gives people an opportunity when no one else will.
The biggest need in every sector of the economy, says Pilzer, is intellectual distribution—the dissemination of information about products and services. “We have a huge backlog of better products and services that people aren’t buying because they don’t know about them. Direct selling is the most efficient method for the distribution of intellectual information that will improve your life. It is the ideal model that allows anyone to reach out.”
Direct selling offers people the skills and tools to create new income opportunities—to venture out on their own as entrepreneurs and grow in confidence versus being consumed by the fear associated with a shrinking job market. “Technology is available to everyone at home and is even better than what you can get in a large company,” says Pilzer. “When we examine the workplace, we often find outdated computers and data management systems. However, the best tools and support needed to run a home-based business are now available to individuals at an affordable cost. This makes a home-based business—and a direct selling opportunity, in particular—very appealing.”
Article “Solution to a Shrinking Job Market” written by J.M.Emmert
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My Top recommendation right now is to watch this full presentation on facebook, explaining in more detail this current economic crisis and how it relates to all of us, hosted by David Wood.
David is the creator of the only Government Approved Money System on facebook, and top recruiter in the only direct sales opportunity that actually creates wealth by sharing an opportunity that promotes the sale of numismatic coin.
Reps earn commissions for promoting the sale of these coins, which gain value and add net worth to the holders of these graded coins in their financial portfolio’s.
For complete details of this direct sales opportunity go to Numis Prosperity Solution for today’s business professional
How My “Why Not To” Became My “Why Not?” Choosing Numis Network, Thanks to Ray Higdon
I did a complete 180 degree turn around and decided to join Numis Network after watching this Video Ray Higdon did. yes he is my sponsor, and even though we have never actually met I feel like I have been stalking him for the past 12 months, watching every video and going to every training I could find online. He recently added me to his Facebook group: [Ray Higdon Numis Network Group] which is an open group. Feel free to request to join, and let Ray know I sent you. (I still can’t figure out this Facebook thing, who’s talking to me????
Like I said, I have been following Numis Network and several of the key leaders in the organization. I decide to join because I could not defend my “Why NOT To!” anymore and it became my “Why NOT?” Ray, besides actually proving it works, makes complete sense of this opportunity and breaks it done very simply for everyone to understand. Watch the following video and get back to me if this makes sense, does, not make sense, or whatever your thoughts may be. Ray hit the highest level of earning in the company here in July, and made $50,000 in one month, with only 2400 active reps in his immediate organization. Listen and see what you think.
This may be the “Numis” prosperity solution that you may be looking for! Its working, what’s your “Why NOT?”
Washington Announces Applications for Unemployment Aid Drop Below 400K
Applications for unemployment benefits fall to lowest level in nearly 4 months. is that really good news, or even accurate? Christopher S. Rugaber, AP Economics Writer, writes this On Thursday July 28, 2011, 4:30 pm for the Associated Press.
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WASHINGTON (AP) — The number of people seeking unemployment benefits dropped last week to the lowest level since early April, a sign the job market may be healing after a recent slump.
The Labor Department said Thursday that weekly applications fell 24,000 to a seasonally adjusted 398,000. That’s the first time applications have fallen below 400,000 in 16 weeks.
The four-week average, a less volatile measure, dropped to 413,750, the lowest since the week of April 23. Stocks rose after the report was released. But they closed lower for the day after uncertainty in Washington over the debt crisis led to a late-afternoon sell-off. Economists cautioned that the lower level of unemployment benefit applications only reflects one week of data and that doesn’t necessarily signal a trend. The drop “is clearly good news,” said Joshua Shapiro, an economist at MFR Inc. Still, “we would prefer to see further data before concluding that the earlier downtrend in claims is being re-established.”
Separately, the National Association of Realtors said more people signed contracts to buy homes in June for the second straight month. But the increase was not enough to signal a rebound in the weak housing market. The Realtors group said its index of sales agreements for previously occupied homes rose 2.4 percent in June to a reading of 90.9. The gain and an 8.2 percent increase in May did not make up for a huge drop-off in April when contract signings had fallen 11.3 percent.
A reading of 100 is considered healthy by economists. The last time the index reached that level was in April 2010, the final month when buyers could qualify for a federal tax credit.
The number of people seeking unemployment benefits remains higher than would be expected in a healthy economy. Consumers are holding back on spending because of stagnant wages, high unemployment, tighter credit, and depressed home prices. That’s restraining economic growth. Unemployment applications had fallen in February to 375,000, a level that signals healthy job growth. But they then surged to an eight-month high of 478,000 in April and have declined only slowly since then.
Some of the drop likely reflects seasonal volatility. Applications were elevated earlier this month partly because of temporary layoffs in the auto and other manufacturing industries, which are ending. Many auto companies close their factories in early July to prepare for new models. The total number of people receiving unemployment benefits, meanwhile, dipped to 3.7 million. That doesn’t include millions of people receiving extended benefits under emergency programs enacted during the recession. All told, 7.65 million people received benefits in the week ended July 9, the latest data available.
Analysts forecast that the economy grew in the April-June quarter by an annual rate of only 1.7 percent, the second straight quarter of anemic expansion. The government reports on second-quarter growth Friday. Hiring has slowed in recent months. The economy added only 18,000 net jobs in June. That’s the fewest in nine months and below the average of 215,000 jobs per month that the economy added from February through April. The unemployment rate rose to 9.2 percent last month, the highest level of the year.
Manufacturing had been a bright spot in the economy since the recession ended two years ago. But it has stumbled in recent months. Orders for long-lasting manufactured goods fell 2.1 percent in June, the Commerce Department said Wednesday. It was the second drop in three months. Economists had expected orders to increase, noting that temporary constraints have eased. In particular, gas prices have come down slightly since peaking in the spring. But manufacturing output has also been slowed by the Japan earthquake, which has disrupted global supply chains and created a parts shortage in the auto and electronics industries.
Federal Reserve Chairman Ben Bernanke and many private economists expect growth to pick up in the second half of this year, predicting those temporary factors will fade. Gas prices, for example, averaged $3.70 a gallon on Wednesday, down from their peak of nearly $4 in early May. But some are growing more concerned that the economy’s weakness will persist. The Fed said Wednesday that its survey of economic activity found growth slowed in eight of its 12 regions in June and early July. The report, known as the Beige Book, was the weakest this year.
Many economists are becoming more pessimistic about the second half of this year. Goldman Sachs recently cut its estimate for growth in the July-September period to 2.5 percent, down from 3.25 percent. JPMorgan, meanwhile, reduced its estimate to 2.5 percent from 3 percent. Growth of about 2.5 percent is barely enough to reduce the unemployment rate. The economy would need to grow 5 percent for a whole year to bring down the rate by one percentage point. Associated Press Economics Writer Martin Crutsinger contributed to this report at: http://finance.yahoo.com/news/Applications-for-unemployment-apf-2720635129.html?x=0
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Some of the comments posted following the article set the mood for how people are actually feeling about the reality of the current situation across the country:
“Christopher S. Rugaber needs to learn how to Title Articles that are more reflective of reality. something like: ” Unemployment RAN OUT for thousands of people who will now get nothing”
“Add the long term unemployed like myself, three and one half years of looking, and there is an increase in the unemployed. Counting those who only currently receive aid is a useless number. No wonder why our government is broke. People in Washington can’t add correctly.”
“Yeah, unemployment applicants have dropped, but only momentarily. I see there are LOTS of jobs cut in the last week, so here we go again, same ol, same ol. I’ve been looking for work for the last 6 months to provide for my family, and after hundreds of applications, nothing. This is ridiculous.”
“Unexpected decline in benefits ? Its more like more people dropped off their benefits because they exhausted their 26 weeks, plus their 26 weeks of Federal extension benefits ! You cant tell me they have no way of tracking these statistics because obviously they get dropped after expending them !!!”
“If that were the case it must be somewhere other than the midwest because there are all kinds of people that have lost their jobs. Houses are empty because their owners can’t afford to make the payment and crime is up in my area. I think that they can’t get unemployment anymore is more like it not that the economy is looking up.”
Well there you have it. There are a great deal more comments like these on the site, so check it out. I think you get the drift though, how the mood of the country is right now.
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