With labor and related costs representing 80 percent of the Postal Service budget, what concessions are being asked of its union workforce?
The Postal Service values the contributions and service of its employees and has a history of working closely with its unions to make necessary changes. In the past year, the Postal Service was able to offer two union groups buy outs and eliminated 12,000 delivery routes to increase efficiency. The Postal Service has been and will continue to address the cost of employee benefits through the collective bargaining process. For example, the Postal Service has reduced the employer contributions to health benefits by 1 percent per year for the life of the last collective bargaining agreement.
Related Questions
- The Postal Service is projecting a $33 billion shortfall in 2020. How much will the Postal Service raise prices to cover these costs?
- Given the magnitude of the budget problem, shouldn’t the City seek concessions from its labor unions to help reduce expenses?
- Where do we have to budget travel and accommodation costs of external service providers (e.g. speakers, researchers)?
