The U.S. Postal Service anticipates having only five days of operating cash on hand after making its annual workers’ compensation payment in October, leaving the agency with slim reserves in the event of an unforeseen downturn. “This is a dangerously low level of cash,” said USPS Chief Financial Officer Joseph Corbett during a teleconference with reporters on Monday. “We do not have a sufficient cash cushion to run a business the size of the Postal Service.” USPS spokesman David Partenheimer clarified Tuesday that the agency should be able to survive with a five-day reserve until the first quarter,
The U.S. Postal Service may begin closing mail-processing plants as soon as this week after its regulator denied a labor-union request to block the closings. The Postal Regulatory Commission Friday denied the American Postal Workers Union’s request to halt the service’s plan to close about 140 plants in the next year and about 90 in 2014. The Postal Service, which has said it will save $2.1 billion annual and cut 5 percent of its workforce with the closings, is “pleased” with the ruling, said David Partenheimer, a spokesman. “The rapid decline in single-piece First Class mail makes it urgent …
The U.S. Postal Service, which predicts an annual loss of $18.2 billion by 2015, plans to eliminate 5.4 percent of its workforce by closing almost half its mail-processing facilities to decrease costs. The service plans to shut 223 of its 461 mail-processing plants by February 2013, Postmaster General Patrick Donahoe said in a telephone interview today. The closings will cut about 35,000 jobs, said David Partenheimer, a spokesman.