Friday, April 16, 2010

Unions Making Postal Service Unsustainable, GAO Says

Another example of unions running a business into the ground with inflexible rules.

The U.S. Postal Service’s business model is not sustainable, and union-backed generous employee benefits along with collective bargaining contracts are a big part of the problem, according to a report by the Government Accountability Office.

As mail volume has plummeted by 17 percent – or by 36 billion pieces – in the past three years, collective bargaining contracts have forced the Postal Service to keep full-time employees with full health and retirement benefits and preclude outsourcing of services.

“Limitations on the workforce mix of full-time and part-time postal employees and workforce flexibility rules contained in contracts with USPS’s unions are key detriments of how postal work is organized and, thus, of its cost,” the GAO report said.

Read article here.

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