The US Postal Service will be unable to make payment worth US$5.5 billion this month and a possible shut down of deliveries this winter is expected if the government does not step in, The New York Times reported on Monday.
Postmaster General Patrick Donahoe said 'our situation is extremely serious,' in an interview. 'If Congress doesn't act, we will default.' The service has been piling up losses since early 2008 due to rising costs and a decline in volumes caused by rising Internet use and e-commerce.
The service unveiled a plan to close more than 10 per cent of its post offices throughout the United States. The US Postal Service had already slashed 110,000 jobs which is 16 per cent of its workforce in the past four years to cut its wage bill.
Postmaster General Patrick Donahoe said 'our situation is extremely serious,' in an interview. 'If Congress doesn't act, we will default.' The service has been piling up losses since early 2008 due to rising costs and a decline in volumes caused by rising Internet use and e-commerce.
The service unveiled a plan to close more than 10 per cent of its post offices throughout the United States. The US Postal Service had already slashed 110,000 jobs which is 16 per cent of its workforce in the past four years to cut its wage bill.
SOURCE:
http://www.straitstimes.com/BreakingNews/World/Story/STIStory_709874.html
