Speaking to the Mailers’ Technical Advisory Committee meeting yesterday at USPS headquarters in Washington DC, USPS chief financial officer Corbett said there was now “no question” that the Postal Service would refuse to pay the federal government a required $5.5bn installment for its retiree health benefits fund this September.
Corbett said yesterday that in the event that cash reserves do dry up, the Postal Service will prioritise payment of its employees, then suppliers, but that other contractors might not be paid.
Furthermore, he said the Postal Service has “absolutely no cushion” in the event of another economic slowdown, at a time when economists are now warning of a slowdown this year.
Corbett said: “If anything remotely bad happens – the cost of fuel goes up, the cost of living goes up, the mail volume declines further – then we run out sooner.”
This will all come to a head next spring in the midst of a hotly contested presidential campaign....
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