Big news yesterday for the Postal Service and the APWU. The House Committee on Oversight and Government Reform unanimously approved H.R. 22. The bill will now go before the full House for consideration. H.R. 22 , if passed into law, would provide immediate albeit, short-term relief to an already financially strained Postal Service. It would amend a provision of the Postal Accountability and Enhancement Act (PAEA) that requires the Postal Service to prefund the healthcare benefits of retirees from its current operating budget. This unfair burden combined with the nation's economic collapse has created an unprecedented financial crisis so severe that it threatens the continued existence of one of our nation's most valued institutions.
By allowing the Postal Service to pay a portion of these benefits from the Postal Service Retirees Health Benefits Fund (through Fiscal Year 2011), it is estimated that the USPS would save more than $6 billion ($2 billion per year over the next three years). The relief provided by H.R. 22 is not a bailout and comes “without a single dollar of taxpayer money,” as noted by APWU Legislative and Political Director Myke Reid.
Although a companion bill has not yet been introduced in the Senate, the House bill with 338 co-sponsors, is expected to pass easily when it comes under consideration of the full House which is anticipated to be sometime before Congress’ August recess.
With cautious optism APWU President William Burrus praised the vote. “We are pleased by the vote and eager for H.R. 22 to become law,” he said, “But we are mindful of the long-term financial challenges facing the Postal Service.”
