USPS Job Cuts Barely Dent $49B Payroll

From 2008 through 2010, work hours fell 14 percent to about 1.2 billion. But pay raises and other expenses cut into the savings, and total personnel costs fell only 6 percent, to $49 billion. USPS spokesman Greg Frey noted cost-of-living adjustments are required by union contracts. He also said payments aimed at encouraging employees to resign or retire early reduced savings.

“It’s very clear that addressing costs and labor costs and getting them in line with revenues are going to have to be part of fixing the deficit problem,” said Frederick Hill, spokesman for Rep. Darrell Issa, R-Calif.