DOVER, Del.- On the edge of bankruptcy, the U.S. Postal Service's has announced a $3.3 billion loss during the first quarter of fiscal year 2012.
The U.S. Postal Service blames declining mail volume and rising costs of health benefits for future retirees.
From October through December 2011, losses were $3 billion more than the same period about a year ago. The first quarter is usually the strongest due to increased holiday shipping. The mail agency says at this rate, it will run out of money by October.
The Postal Service is seeking help from Congress to eliminate Saturday mail delivery, raise stamp prices and reduce health and other labor costs. At risk is nearly 100,000 jobs, part of a postal cost-cutting plan to save up to $6.5 billion a year by closing 252 mail processing centers and up to 3,700 post offices.
At the request of Congress, the agency in dire need of money agreed to wait until mid-May to begin closures so lawmakers would have to stabilize its finances first.
Delaware Sen. Tom Carper has repeatedly stated that Congress needs to come together on a plan that can save the Postal Service and protect more than 8 million jobs that rely on it. According to Carper, the bipartisan 21st Century Postal Service Act strives to help the Postal Service adjust its operations to reflect the changing demand for its products and services while also giving it tools that can help be successful in the 21st century.
"While the situation facing the Postal Service is dire, it is not hopeless," Carper said. "That is why we need to pass this bipartisan and comprehensive bill as soon as possible. It is my hope that Congress and the Administration can come together on this plan in order to save the Postal Service before it's too late."
