The last quarter results of the U.S. Postal Service show a loss of 5.2 billion dollars, causing a severe shortage of funds for the service. The financial period from April to June this year was very tough for the Postal Service, which is now seeking help from the U.S. Congress to continue its operations.
The Postal Service has been going through a difficult phase for quite some time now. The service lost its popularity among the people with the widespread use of the internet and latest communication devices. The stamps sold by the Postal Service have long stopped being sold in large quantities, so the incoming cash has greatly reduced, whereas liabilities are still at the same rate as earlier.
The USPS is urging Congress to provide relief because making payments has become a serious issue for the service. It has even started to default on its payments.
"Congress needs to act responsibly and get on with things so that we can get these things in our rearview mirror," Postmaster General Patrick Donahoe said, as reported by Yahoo News.
Operational costs for the Postal Service have gone too high compared to the revenues and it is therefore struggling to keep its operations going. Agency officials are asking for rescue by the authorities and steps to facilitate the operations. They are trying to bring these costs down by reorganizing the service’s processes and eliminating the extra costs. The complete recovery is, however, not possible without the aid from Congress.
A bill has been passed by Senate to close Saturday mail and manage the federal retirement fund in order to control the financial crisis at the postal service. Members of the Congress, however, have gone for a month’s break and left the issue in the middle.
"I can only hope that as members of Congress are back in their districts meeting with their constituents over the next month, they will hear these concerns about the future of the Postal Service and be persuaded that they cannot continue to postpone passing comprehensive postal reform legislation," Senator, who is one of four authors of the Senate bill, said.
The USPS fears problems for a large number of workers whose jobs depend on the mail system. "There are more than 8 million private sector workers whose jobs depend on the mail, and these jobs may be in jeopardy if Congress fails to reform the Postal Service. As bad as things are getting for the Postal Service, it could be worse next year," Art Sackler, co-coordinator of the Coalition for a 21st Century Postal Service said.
The Postal Service hopes to come out of the crisis with the help of the aid from the Congress. The upcoming presidential election is also expected to boost up the operations and help revive the service.