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USPS To Scrap Jobs, Federal Benefits

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The U.S. Postal Service, in an effort to dig itself out of a huge financial hole, is proposing to cut 120,000 jobs and employee access to federal health and retiree benefit programs, according to the Washington Post.

USPS, which is facing more than $8 billion in losses before the end of the fiscal year, plans to seek congressional approval to conduct layoffs currently prohibited under collective bargaining agreements, the report states, noting that the agency needs to reduce its workforce by 120,000 positions by 2015 through attrition, buyouts and possible layoffs. The agency already is in the process of cutting 7,500 jobs in its administrative, supervisory and postmaster workforces, which officials say will save $750 million annually.

Officials also are looking to withdraw from federal health and retirement benefit plans and create a new program for its employees, according to the Post.

Several postal reform bills are floating around in Congress, but none include provisions similar to those USPS is proposing. It remains unclear how lawmakers will take on these ideas. Unions, however, are sure to push back against anything that threatens members' jobs and benefits.

 
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