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U.S. Postal Service Near Default

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    Financially troubled agency wants Congress to act

  • Duration 2:35
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The Postal Service is on its last financial leg apparently the agency very long cash and it's now facing.

Postmaster general Patrick Donahue says the service is facing serious cost cutting measures.

Including eliminating Saturday service and delivery.

Closing up to 3700.

Postal locations laid off.

About a 120000.

Workers that's nearly 15 of the workforce.

Decent -- in Washington and Steve.

How soon might we see some major changes in postal operations.

Well -- the post I was wants action right away but that's up to congress.

Now on the US Postal Service web site of so called white Paper outlining proposed congressional action says.

Today despite unprecedented cost and staffing reductions over the past decade.

Postal Service is facing the equivalent of Chapter Eleven bankruptcy.

And they need to re organized while our business remains vital.

To the US economy they say we will be insolvent.

Next month.

Post office will -- -- fault on a five point five billion dollar payment.

Later this month -- it doesn't get congressional help the big problem of course is increasing cost mostly labor costs in the face of declining mail volume.

Most people using the Internet now for mail.

Will -- I was being able to survival here's the postmaster general from earlier this summer.

We do feel.

That we are still very relevant.

To the American public and American economy.

But we also have to make some pretty tough choices as we worked through some of the financial issues that we face.

On the table -- some major changes including legislation that would allow the Postal Service to adjust the size of its workforce which could mean laying off up to 120000.

Workers.

And adjusting the frequency of delivery which could mean an end to Saturday delivery that's been on the table for some time.

Laying off workers is a new proposal -- and was Steve why can't the post office lay off employees right now.

Well it's very -- they have the union contracts that prohibit layoffs iron -- contracts and the postal union is not happy with the pending legislation either.

Its president says this is a clear attempt to abrogate our contract and destroy it.

Postal collective bargaining crushing postal workers and slashing service will not solve.

The postal service's financial crisis says the president of the American postal workers union.

These postal problems -- by the way be the subject of a senate hearing tomorrow brokered time Steve Centanni live in Washington and Steve thank -- --

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