Submitted by Elaine Magliaro, Weekend Contributor
Back in May 2012, I wrote a post titled Going Postal in Washington, D. C.: The USPS, the Postal Accountability and Enhancement Act of 2006, Union Busting, and Paving the Road to Privatization. In it, I noted the main reason why the USPS is experiencing financial problems—a mandate included in the Postal Accountability and Enhancement Act of 2006 that required the USPS to pre-fund employee healthcare benefits for seventy-five years…in just ten
years time. That legislation was passed “on a voice vote by a lame duck Republican Congress.” As Josh Eidelson wrote in a March 2012 Salon article titled Congress’s war on the post office, the Postal Service’s greatest threat isn’t email or economics. He put the blame where it rightly belongs—on Congress. So did Jeanette P. Dwyer, president of the Rural Letter Carriers Association. Dwyer was quoted by the New York Times last November as saying, “Congress created the problems, and it can fix them by taking away the requirement that no other government agency or business has to face.”
This legislative requirement that the USPS must prefund healthcare benefits for three-quarters of a century in one decade means that it has had to cough up $5.5 billion annually since 2007—and will have to continue to do so through 2016. Congress has not required any other government entity or agency to do the same. Why has the Postal Service—an institution that provides valuable services to businesses and to millions and millions of Americans—been singled out? Why indeed…when one considers that the USPS does not receive any tax dollars? It relies on the sale of postage and other products and services to fund its operations.
Both Alison Kilkenny and Matt Taibbi think that the purpose of the legislation “was to break a public sector union and privatize the mail industry.”
