April 5, 2011
$8.5 billion in Losses but Pay Raises for Postal Workers?
What enterprise that lost $8.5 billion in one year (2010) would give employees a pay hike? Yes, you've guessed it. The U.S. Postal Service has hammered out a deal with the postal workers' biggest union to raise salaries over the course of a four and half year deal - pending rank and file approval. The pay hikes are fairly modest, essentially cost-of-living increases, provided the Fed's money printing orgy doesn't lead to galloping inflation. But even cost-of-living increases add up. The U.S. Postal Service has an estimated 580,000 employees. The Washington Post reports: Rep. Darrell Issa (R-Calif.), who chairs the House Oversight and Government Reform Committee (which has primary jurisdiction over postal affairs), has called the agreement "a missed opportunity" and is trying to determine whether USPS could have fought for greater savings. Issa is onto something. Patrick R. Donahue, the...(Read Full Post)