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The U.S. Postal Service added to its losses in the second quarter and is closer to needing “extreme action” to keep it afloat, Postmaster General Patrick Donahoe said Friday.

Donahoe said that without legislation to change the service’s business model, mounting losses will necessitate heeding the postal board’s call to ask labor unions to reopen contracts and to consider raising postal rates.

“At some point our financial liabilities become so large that they cannot be fixed without taking extreme action,” Donahoe said at a board meeting in Washington. “We don’t want to get to the point where extreme action is the only option.”

The service lost $1.9 billion in its second quarter ending March 31, narrowing the loss from $3.2 billion a year earlier in the same quarter as it reduced its work force by nearly 5 percent, Chief Financial Officer Joseph Corbett said at the meeting.

The service is a government agency that is supposed to be self-supporting from postage sales.

Read tomorrow's Arkansas Democrat-Gazette for full details.

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Comments

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  • trainingman
    May 10, 2013 at 2:25 p.m.

    How much more can WE, the American People take? They, USPS, need to get rid of Saturday Service, go to a five day work week and cut cost-freeze pay raises and get rid of the managment tier that cannnot manage!

  • dimebag
    May 10, 2013 at 3:07 p.m.

    plus they need to start closing down post offices that are in the back door of another post office. yellville/summit, cotter/gassville, western grove/valley springs/bellefonte/harrison. combine these mutliple post offices in to one centrally located and cut the waste. these, i am sure, are a very short list for the number of wasted areas across the entire country.

  • LevitiCuss
    May 10, 2013 at 4:57 p.m.

    Unfortunately, the USPS is restricted by law to the least profitable portion of the mail/delivery business, and required by law to provide letter service virtually everywhere- even if they lose money as a result. The law also prevents them from offering non-mail related services at the PO. This is all by design, as the Republicans are willing to destroy the USPS if that's what it takes to destroy the union. When the USPS is gone and letter service via UPS or FedEx costs $10, you will know who to blame.

  • GAITOR
    May 10, 2013 at 5:07 p.m.

    LC: You and your buddies are so full of it.....I guess it's GW's fault, right?

  • AlvinH
    May 10, 2013 at 8:53 p.m.

    Cut Sat out. get ride of those lik here in Jacksonville PO that lie to the customers, yes the postmaster and his number 2. may be some are paid too much! cut the high paid jobs out. Yes, and close the ones that are so close to each other, too many that will never pay thier way, but stop haveing 3 in about 10 miles of each other and thats not counting Rogers.(Pea Ridge, Garfield, and Gateway, then acorss the state line, there is another one with in a very few miles, stop the waste

  • GrimReaper
    May 11, 2013 at 1:50 a.m.

    What morons! The main reason they are losing so much is the sharp decline in volume caused by their 'extreme action' of letting costs go wild and trying to cover the problem by continually raising prices. We now have many other options and the USPS must adapt to the changes in the marketplace. Cut costs.....COSTS.....not product value. And yes, your business model definitely needs a revision.

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