Also in this playlist...
This transcript is automatically generated
-- warning it could default on retiree benefit payments for 2011 -- 2012.
If congress doesn't act -- lawmakers are still arguing over how to fix the struggling Postal Service.
Which -- little loss of more than three billion dollars in the second quarter of this fiscal year Steve Centanni following this story for us live from our DC bureau -- Hi -- the US post office making history -- about two weeks defaulting on a payment for the first time since the agency was -- in 1775.
That's because the post office is losing customers to email.
And it's tied to employee benefit obligations it can't meet and it can't change without congressional action.
On August 1 the post office will default on five point five billion dollars in prepayment for last year to retirees health fund.
It was put off from last year incomes do this here and that's not all in September a similar payment this 15 point six billion dollars will be due for this year.
In the post up but does -- will default on that -- as well if something doesn't happen.
That's a total of more than eleven billion dollars the post office says that -- -- this embarrassing situation employees will be paid operations will continue.
In a statement a post office spokesman tells Fox News.
Legislation addressing the postal service's financial crisis has not been enacted and we continue to experience serious liquidity challenges.
Well defaulting on these payments will not affect our customers or employees.
These ongoing liquidity issues unnecessarily.
In the viability of the Postal Service among our customers.
Now congress continues to fight over just how to reform the post office into a money making venture or at least one that isn't losing billions every year.
But with lawmakers set to take an August break.
Action is not likely any time soon those so those defaults -- probably go forward Jamie Steve Centanni Latin --
Filter by section