Enacting Republican-sponsored postal reform legislation would result in net savings of about $20 billion over the 2012-2022period, the Congressional Budget Office has said.
HR-2309, the Postal Reform Act of 2011, sponsored by Darrell Issa, R-Calif., would authorize moving to a five-day delivery schedule, return to USPS about $11 billion in retiree health benefit payments, reduce the amount USPS pays for employee health and life insurance premiums, lower its benefits pre-funding obligation, as well as eliminate annual appropriations made to USPS for free and reduced rate mail.
The bill would empanel a BRAC-style task force to come up with a plan to consolidate redundant post offices to save at least $1 billion a year, and excess mail processing facilities to save at least $2 billion per year, as well as cut 30 percent of management facilities.
The bill protects rural post offices contrary to USPS proposals that want to fold those services into local partners such as general stores.
It establishes a restructuring authority that would kick in if the Postal Service defaults on payments for over 30 days. At that point a receivership-style authority would take over USPS management with a cost-cutting mandate.
It would also prohibit anti-layoff clauses in collective bargaining agreements, such as the one UPSS signed with the American Postal Workers Union that it has been trying to get out of ever since.
