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April 6, 2004February 3, 2015Sam Ryan

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Postal Pay At A Premium

April 6, 2004February 3, 2015Sam Ryan

Letter to the Editor – Washington Post

The March 23 news story “Postal Service Finances Bleak” said that the Postal Service’s financial troubles stem mainly from a decline in mail volume. The real problem is out-of-control labor costs.

According to the presidential postal commission, postal employees receive a 28.4 percent pay increase, on average, upon hire. Labor accounts for nearly 80 percent of Postal Service costs, compared with roughly 50 percent for private delivery firms.

The exorbitant pay premium is a contradiction of federal law stating that postal pay should be comparable to private-sector pay. If the Postal Service reduced its compensation premium, it could save over $8 billion per year. That would allow it to operate in the black while lowering postal rates.

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