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U.S. Postal Service Records Large Quarterly Operating Profit, Yet Reports Loss

U.S. Postal Service Records Large Quarterly Operating Profit, Yet Reports Loss
Yet the last calendar quarter of 2013 shows an operating profit of $765 million.
FOR IMMEDIATERELEASE: FEBRUARY 10, 2014

Communities and Postal Workers United www.cpwunited.com

For more information, contact David Yao 206-310-1183 or Jamie Partridge503-752-5112


The recent Postal Service Financial Report for the last calendar quarter of 2013
shows an operating profit of $765 million - yet the official postal press release,
duly reported in the media, announced a loss of $354 million.

The announced loss was due solely to a to a $1.425 billion charge for a mandated
payment to a federal budget account for future - not current - retiree health care. No
payment was actually made, but the amount was recorded as a liability. The Postal
Service and postal unions have called for a repeal of the portion of the 2006 law
that mandates this "pre-funding."

A promising recovery in postal finances was highlighted by an increase of
$1.5billion in postal cash, spurred by revenue increases and cost reductions.

American Postal Workers Union president Mark Dimondstein stated in response
that" "The USPS is suffering from a manufactured crisis. Privatizer shave used the
ginned-up crisis to undermine a great national treasure. They've been closing mail
processing plants, out sourcing retail operations, threatening to eliminate six-day
delivery and generally harming service." National Association of Letter
Carriers president Fredric Rolando said, "lawmakers should strengthen the postal
network while addressing the remaining problem: the congressional mandate to
pre-fund future retiree benefits."

Communities and Postal Workers United spokesperson Jamie Partridge stated that
"the large operating profit demonstrates that no cuts in service to the community are
justified. Current service and delivery standards should be maintained, and mail
processing plants should be re-opened to maintain those standards."


Senate Bill Would Add Pre-funding, Cut Service and Jobs

The day before the financial report was released, the Senate Committee on
Homeland Security and Governmental Affairs approved a version of S.1486 that would
allow reductions in service and delivery standards, threaten jobs and weaken
retirement and other compensation for postal employees. It would burden postal
finances with an additional pre-funding requirement, for workers compensation.

The four major postal unions oppose this version of postal legislation, as
does Communities and Postal Workers United, a network of postal activists and
community groups.

 http://www.apwu.org/news/webart/2014/14-026-usps-financials-140208.htm
 http://www.nalc.org/news/latest/02072014_q1fy2014.html
 http://www.apwu.org/news/webart/2014/14-023-s1486-markup-140206.htm