Tags: post | office | bankruptcy | rand | paul

Rand Paul to Newsmax: US Post Office Faces Bankruptcy

By    |   Wednesday, 25 July 2012 05:24 PM

Sen. Rand Paul tells Newsmax.TV that the U.S. Postal Service may have to declare bankruptcy in order to renegotiate its burdensome labor contracts.

President Obama’s former director of the Office of Management and Budget, Peter Orszag, has declared that it is time to privatize the Postal Service after it announced it would be unable to meet billions of dollars in payments that are coming due in August and September.

See video below.

Asked about the call for privatization, Sen. Paul said: “I’ve been trying to find somebody who would buy it. I can’t find anybody who’s interested in buying the Post Office. We’ve talked about this for decades.

“Once upon a time, there were people who would have bought the Post Office. Now, I’m not sure anybody would. They haven’t really adapted to the times. The Postal Reform bill that came through isn’t going to work.

“You would ultimately have to run it like a business, but it’s a business now that’s failing because 80 percent of the Post Office’s cost is for the government union workers. And no other businesses run that way.

“UPS is unionized in my state and they’re profitable, but labor’s about 50 percent of their cost. FedEx is non-unionized and labor’s about 38 percent of their cost. But with the Post Office, it’s 80 percent of their cost. You can’t run a business that way, a profitable one.

“So something has to change, but everybody opposes any changes that would allow the Post Office to make decisions like a business. Maybe if they were to have bankruptcy and renegotiate all of their labor contracts, they would have a chance. But there’s too many strong political, partisan voices up here to let that happen.

“So I don’t know what the answer is. Privatization would be great but how we go about doing that is another story.”

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Wednesday, 25 July 2012 05:24 PM
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