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Postal Service is bleeding money is you know losing nearly fourteen billion dollars in the last two years the senate just passed its overhaul but the Postal Service says.
The plan won't allow it to return to financial viability joining me now is the postmaster general.
Patrick got out thanks much for joining us let's get right to let up -- -- -- the plan won't let you be financially viable.
Here's -- situation most of the Postal Service is very important -- this country I mean we still handle a lot of commerce.
And we have to be strong for this country's economy.
But the situation is this we're losing 25 million dollars a day.
Finally put a plan forward to get that from a point five million dollar loss to a six million dollar a day profit and be debt free how would.
Would naturally have to go didn't give me some of the bullet points right away and you want to close down.
There's a disaster -- -- bullet points we have seven billion dollars and PNL that we can result for health care alone.
We've got infrastructure costs say is we've lost -- in point 5%.
You have to address processing facilities and you have to address retail like post offices.
We think there's about six billion dollars and cost savings there well.
80% of your costs are related to the workforce how do you deal with that I mean don't you just need to lay -- Lots of people some figures have set a 100000 people need to -- I was at the bottom line.
Our people do a tremendous job we have reduce -- headcount disorganization in the last ten years by 260000.
Two or 60035%.
Of our headcount.
Situation we face now is.
We're still deliver mail six days a week we need to deliver mail five days week and will reduce the headcount through attrition we've been very good at that.
I mean it.
-- 80% of your costs come from the workers it seems like it's gonna have to go a little further than that let me give you some other stats as well I mean you've got a lot of people out on federal workman's comp.
Of the people that are out workman's -- right now our postal workers that's kind of a staggering number and I think when people are looking at.
Bank rolling more that the post office theses steps like that and it makes him feel like there's a lot of.
-- -- -- Well couple things number one nobody -- -- let's accept our postal customers we take no tax money.
I agree with you that workers' comp is an issue we've been working closely with the senate that's something that was really good in the bill allows us to change some of those workers comp issues.
The other area to your point about -- us.
We need flexibility in the workforce we continue work with the unions for a lot more flexibility like companies like FedEx and UPS -- that's also part of a plan.
You don't got cracks on your map there that as you said that you only get money from stamps from customers -- you have a twelve point nine billion dollar debt right now into the treasury and in fact you're -- Max out.
Your credit limit which is fifteen billion dollars by the end of this year.
We borrowed that and we're on the hook for that we have to pay to have back there's no no grants -- the there's no we get no.
Money the only money we get from the federal government is reimbursement for four voters overseas and a couple other small programs like that.
You don't just the bottom line when you look at the Postal Service some people make fun of it I think you guys have some fantastic products.
Earlier today printed out a label for priority mail -- from my desk at data package to a -- you've got some great stuff but you've got a lot of wiest.
Mean when you look at the first class mail you said yourself.
Volume is down 26%.
You've got to make some big changes to move into the new century the new time of the Internet how can -- do that Patrick.
Fully agree with your personal all week -- -- -- growth and in the package -- we think we are perfectly situated.
With the commerce it's taken off course in -- growth of 678%.
A year were picking up market -- if it fits to ships -- simplified packaging works great.
You're also right about what's happening with -- a single piece that comes through the blue mailbox.
It's easy to pay bills online and it's free we know that that's why we need to shrink the infrastructure.
But we think there's also some strategies to keep commercial mail in the mail.
We just put a price -- came out recently.
That the commercial mailers to mail two ounces for the price of one and we're seeing a steady gain and a slowdown on the diversion to -- that way.
Now -- at pageant -- at a time good luck to you were gonna stay on top of it -- the campaign going to steal your job from you I wanna read the post office and only half kidding.
But I don't know and I you know I'm happy to hear that is mostly happy very much all right Patrick thanks so much for coming up we appreciate it thank you.
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