More Service Cuts on the Way From Postal Service
With plans for a congressional overhaul on hold, the board of governors for the U.S. Postal Service wants the cash-strapped agency to speed up cost-cutting efforts.
Measures previously announced include eliminating Saturday mail delivery and cutting postal processing facilities from 461 to 232 by 2014. The potential savings total $1.2 billion. (Read More: Ailing Post Office Looks to New Congress for Deliverance.)
The Postal Service did not specify what measures it intends to pursue. Spokesman David Partenheimer told CNBC those steps won't be revealed until after postal employees get the details.
Meanwhile, the Postal Regulatory Commission is concerned about a further deterioration of service.
The agency lost just under $16 billion dollars last year, exhausted its legal borrowing limit, and defaulted twice on multi-billion dollar mandatory payments to the federal government. (Read More: USPS Chief Lays Out Plan for the Agency's Survival.)
On Capitol Hill, Sen. Tom Carper, D-Del., Rep. Darryl Issa, R-Calif., said they will try again to get congress to pass legislation to overhaul the postal service.
Reacting to the new cost cutting proposals from the Postal Service, Sen. Carper's office released a statement saying:
"Without action by Congress and the Administration, the Postal Service—and the trillion dollar mailing industry that it supports along with over 8 million jobs—is at risk for failure later this year."
But as was the case in the last Congress, Postal Service legislation could be overshadowed by the looming battles over the debt ceiling, budget cuts, and tax reform. (Read More: What Really Keeps US Post Office From Making A Profit.)
Meanwhile, the price of a first class stamp goes up a penny to 46 cents on Jan. 27.
—By CNBC's Hampton Pearson