8/11/2011

Obama Shamed: Post Office says Obamacare Too Expensive - Private Better, Less Expensive

Posted by Brian

Postal Service proposes cutting 120,000 jobs, pulling out of health-care plan


By Joe Davidson, Updated: Thursday, August 11, 5:24 PM

SEATTLE — The financially strapped U.S. Postal Service is proposing to cut its workforce by 20 percent and to withdraw from the federal health and retirement plans because it believes it could provide benefits at a lower cost.
The layoffs would be achieved in part by breaking labor agreements, a proposal that drew swift fire from postal unions. The plan would require congressional approval but, if successful, could be precedent-setting, with possible ripple effects throughout government. It would also deliver a major blow to the nation’s labor movement.
In a notice informing employees of its proposals — with the headline “Financial crisis calls for significant actions” — the Postal Service said, “We will be insolvent next month due to significant declines in mail volume and retiree health benefit pre-funding costs imposed by Congress.”
Read more at The Washington Post
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