The Bailout Of The US Postal Service Begins: Cost To Taxpayers – $110,000 Per Union Vote “Saved Or Gained”

The Bailout Of The US Postal Service Begins: Cost To Taxpayers – $110,000 Per Union Vote “Saved Or Gained”.(ZH).A week ago, when reading between the lines of what had heretofore been considered an inevitable USPS episode of austerity in which hundreds of thousands of labor union workers would lose their jobs but in the process would streamline a thoroughly outdated and inefficient US Postal Office bureaucracy, we asked if a US Postal Service bailout was imminent, focusing on the following: “Enter Ron Bloom, Lazard, and the very same crew that ended up getting a taxpayer funded bailout for GM. From the WSJ: “The Postal Service’s proposal to close thousands of post offices and cut back on the number of days that mail is delivered “won’t work“ and would accelerate the agency’s decline, according to the six-page report by Ron Bloom, President Barack Obama’s former auto czar, and investment bank Lazard Ltd., LAZ who were hired by the union in October.” That’s right: after all the huffing and puffing about “sacrifice” and austerity, the labor union took one long look at the only option… and asked what other option is there.” The other option, it turns out courtesy of news from AP, is the first of many incremental bail outs of the US Postal Office, better known in pre-election circles as hundreds of thousands of unionized votes up for the taking, and which could be bought for the low low price of $11 billion in taxpayer money, or $110,000 per vote! And so the latest bailout of yet another terminally inefficient and outdated government entity begins.From AP:

The Senate offered a lifeline to the nearly bankrupt U.S. Postal Service on Wednesday, voting to give the struggling agency an $11 billion cash infusion while delaying controversial decisions on closing post offices and ending Saturday delivery.
By a 62-37 vote, senators approved a measure which had divided mostly along rural-urban lines. Over the past several weeks, the bill was modified more than a dozen times, adding new restrictions on closings and cuts to service that rural-state senators said would hurt their communities the most.
The issue now goes to the House, which has yet to consider a separate version of the bill.
“The Postal Service is an iconic American institution that still delivers 500 million pieces of mail a day and sustains 8 million jobs,” said Sen. Joe Lieberman, I-Conn., a bill co-sponsor. “This legislation will change the USPS so it can stay alive throughout the 21st century.”

One would think that the USPS workers would be delighted as a result… One would be wrong. This is merely the beginning:

The mail agency, however, criticized the measure, saying it fell far short in stemming financial losses. Postmaster General Patrick Donahoe said if the bill became law, he would have to return to Congress in a few years to get emergency help.
“It is totally inappropriate in these economic times to keep unneeded facilities open. There is simply not enough mail in our system today,” the Postal Service’s board of governors said in a statement. “It is also inappropriate to delay the implementation of five-day delivery.”

In the meantime, we can now add another zombie to the endless list of insolvent organizations on the government’s dole, whose only saving grace is it has nearly half a million votes that can be bought by the highest bidder.The Senate bill would halt the immediate closing of up to 252 mail-processing centers and 3,700 post offices, part of a postal cost-cutting plan to save some $6.5 billion a year. Donahoe previously said he would begin making cuts after May 15 if Congress didn’t act, warning that the agency could run out of money this fall.
The measure would save about half the mail processing centers the Postal Service wants to close, from 252 to 125, allowing more areas to maintain overnight first-class mail delivery for at least three more years. It also would bar any shutdowns before the November elections, protect rural post offices for at least a year, give affected communities new avenues to appeal closing decisions and forbid cuts to Saturday delivery for two years.
At the same time, the Postal Service would get an infusion of roughly $11 billion, basically a refund of overpayments made in previous years to a federal retirement fund. That would give it immediate liquidity to pay down debt to forestall bankruptcy and finance buyouts to 100,000 postal employees.
The agency could make smaller annual payments into a future retiree health benefits account, gain flexibility in trimming worker compensation benefits and find additional ways to raise postal revenue under a new chief innovation officer.

At stake are more than 100,000 jobs, The agency, $12 billion in debt, says it could run out of money for day-to-day operations as soon as this fall, forcing it to shut down some of its services. The mail agency forecasts a record $14.1 billion loss by the end of this year; without changes, it says annual losses will exceed $21 billion by 2016.

Yeah, yeah. In the meantime all that matters is that about 100,000 votes have been secured for the incumbent candidate. The cost? Only $11 billion, or $110,000 per vote. To all taxpayers.Hmmmm......Obama: "All the Choices We've Made Have Been the Right Ones".Read the full story here.