U.S. Postal Service Says Labor Contract Would Save $3.8 Billion

Tuesday, 05 Apr 2011 09:00 AM

 

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink

The U.S. Postal Service, which has reported losses for five consecutive quarters, would save $3.8 billion over four and a half years under a labor agreement with one of its labor unions.

“We’re doing everything within our authority to put the Postal Service on a path to profitability,” Postmaster General Patrick Donahoe said Monday about a contract reached with the American Postal Workers Union. “Labor costs are forever reduced in this contract.”

Donahoe spoke to reporters at the agency’s Washington headquarters the day before he is scheduled to testify before the House Oversight and Government Reform Committee, whose chairman, Rep. Darrell Issa, R-Calif., has called the contract a “missed opportunity” to cut costs.

Of the $3.8 billion in savings in the contract, $180 million comes from having workers contribute more to their healthcare expenses, Donahoe said. He said the savings won’t cut the 80 percent of the postal budget devoted to labor costs.

© Copyright 2014 Bloomberg News. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Muhammad Ali Hospitalized With Pneumonia

Saturday, 20 Dec 2014 23:27 PM

Boxing great Muhammad Ali was hospitalized with a mild case of pneumonia that was caught early and should result in a sh . . .

Chicago Mayor's Teenage Son Mugged near Home

Saturday, 20 Dec 2014 22:32 PM

A spokeswoman for Chicago Mayor Rahm Emanuel says the mayor's 17-year-old son was mugged near the family's home.Spokeswo . . .

Protesters Shut Down Part of Mall of America in Minnesota

Saturday, 20 Dec 2014 22:25 PM

More than 1,500 protesters against police violence shut down part of the Mall of America in Minnesota on Saturday, resul . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved