For those who prefer the government over the private sector . . .

[Goshin]

Your first significant contribution will be your first.

Go piss up a rope.

61 Electric Bron-Yr-Aur.

Friendly word of caution: on DP "go piss up a rope" might well be viewed as an infraction, upstairs.

Since you are at least moderately intresting, I think I'd prefer you didn't get banned too soon, thus the friendly word.

 

[61 Electric Bron-Yr-Aur]

Friendly word of caution: on DP "go piss up a rope" might well be viewed as an infraction, upstairs.

Since you are at least moderately intresting, I think I'd prefer you didn't get banned too soon, thus the friendly word.

Sincere thanks for the heads up, however, I can't edit that post for some reason. Something tells me that's by design. :doh

 

[samsmart]

Doesn't have to be nukes. We could reenact some Shock and Awe type bombings on their ports, ships, and bases.

Saying that we can go after the Somalian pirates by doing Shock and Awe bombings on their ports, ships, and bases is like saying we can go after the New Jersey mob by blowing up their trucks and warehouses. The Somalian pirates are more criminals than they are terrorists, and not even terrorists are organized military. If you try to blow up their ports, ships, and bases they'll just go elsewhere to operate. It'll be worse than going into Afghanistan.

 

[samsmart]

Sincere thanks for the heads up, however, I can't edit that post for some reason. Something tells me that's by design. :doh

Indeed; you only have a small amount of time after you post to edit it.

 

[obvious Child]

There's a reason USPS is launching a five day delivery plan while FedEx is thriving. Just another fact that evinces the government needs to GTFO of business and our lives.

Before opening your mouth, you may want to look at USPS's financials. So many people here feel like they have the knowledge to talk about what is causing USPS's problems without even understanding the fundamental financials underlying the business.

USPS makes money on its operations. What is causing problems its is pension obligations.

Actual operational costs compared to operation income shows a pretty large margin. What the USPS shows is that legacy costs are hurting it just as legacy costs hurt private business.

 

[obvious Child]

So far they are planning on only cutting services and raising prices.

They haven't cut their labor force at all, even though mail usage has declined a lot.
83% of their worker are full time union workers.

If anything they should get rid of their union merely to reduce future legacy costs. I think we had this conversation before. What is killing the USPS is what is killing GM. When your operations are profitable but your legacy costs cause you to go into the negative, you got problems. Shedding its legacy costs would show a highly profitable operation. Something USPS detractors either ignore or have no understanding of. There are days when I think public schools should have mandatory classes on learning how to read financial statements, perhaps in part of a class on financial management.

 

[Goshin]

Before opening your mouth, you may want to look at USPS's financials. So many people here feel like they have the knowledge to talk about what is causing USPS's problems without even understanding the fundamental financials underlying the business.

USPS makes money on its operations. What is causing problems its is pension obligations.

Actual operational costs compared to operation income shows a pretty large margin. What the USPS shows is that legacy costs are hurting it just as legacy costs hurt private business.

So, they have the same problem as many unionized businesses do: the unions pushed them into "Sweetheart" deals that, in the long-term, are all but unfundable? Figures.

 

[Lord Tammerlain]

So, they have the same problem as many unionized businesses do: the unions pushed them into "Sweetheart" deals that, in the long-term, are all but unfundable? Figures.

And the Unions should have done things differently?

Remember they exist to ensure their members get the best possible wage and benifits package they can. That is why people pay the union that they belong to. They want to get the most profit the the sale of their labour to the company. I am sure you are the same.

 

[Goshin]

And the Unions should have done things differently?

Remember they exist to ensure their members get the best possible wage and benifits package they can. That is why people pay the union that they belong to. They want to get the most profit the the sale of their labour to the company. I am sure you are the same.

Until it gets to the point, that those wage and benefits packages and the retirement deals end up destroying the economic viability of the company they depend on, as we've seen in the American auto industry for one.

When the company who pays the bills goes under, to whom does the union apply for all those retirement payments that no one is around to pay anymore?

 

[obvious Child]

So, they have the same problem as many unionized businesses do: the unions pushed them into "Sweetheart" deals that, in the long-term, are all but unfundable? Figures.

Pretty much. Defined benefit plans are in many ways a noose around business even when there aren't unions. The past decade has seen non-unionized business are ditching their defined benefit plans. The fact they are unionized doesn't help, but isn't the primary concern. A defined benefit plan is the problem.

If you look at the 2004-2006 10k equivalent, the operating income was pretty decent. $3 billion on $68 billion of revenue. Roughly 4.4%. 2003 had 5.6% operating margin. Those margins are in line with FedEx and UPS.

USPS - Annual Reports

 

[Harry Guerrilla]

If anything they should get rid of their union merely to reduce future legacy costs. I think we had this conversation before. What is killing the USPS is what is killing GM. When your operations are profitable but your legacy costs cause you to go into the negative, you got problems. Shedding its legacy costs would show a highly profitable operation. Something USPS detractors either ignore or have no understanding of. There are days when I think public schools should have mandatory classes on learning how to read financial statements, perhaps in part of a class on financial management.

I agree with what you've posted but they are missing on the immediate market response to slow downs.
Cutting unneeded labor and pushing more efficiency out of whats left.

I'm not a fan of monopolies (technically a monopsony in this instance but more or less the same difference) whether it is business or labor.

Legacy costs are killing state budgets as well, so you're definitely right on that.

 

[obvious Child]

I agree with what you've posted but they are missing on the immediate market response to slow downs.
Cutting unneeded labor and pushing more efficiency out of whats left.

Sorta of. The past couple of years has seen a significant decline in mail, yet in 2008, well within the recession, USPS made $4.6 billion in profit pre-retirement benefits. 2009, without retiree costs, they are only $404 million in the hole which isn't that bad compared to their gross revenue.

Stringing efficiency and reducing labor probably could reduce their 2010 loss to I'd guess $200 million, but their real fundamental problem is their pension benefit obligations. Strip that out and the USPS is making bank. The notion that government cannot run a profitable business is to ignore the operations of the USPS.

FINANCIAL STATEMENTS

Legacy costs are killing state budgets as well, so you're definitely right on that.

Indeed. Legacy costs are killing everything it touches.

But considering the 2009 fiscal report, it does appear that the USPS is reducing its legacy costs. Last year it cost them $9 billion, this report it's a bit over $3 billion. Probably buy outs. Kind of worked for GM. I'd like to know what that $9 billion in other is. And I'd be interested to see how the conversion from gas delivery vehicles to pure electric would reduce transportation costs.