USPS Cut Labor Costs by $10.2 Billion, OIG Says

The U.S. Postal Service has cut its labor costs by $10.2 billion since fiscal year 2006, but the cost of pre-funding future retiree health liabilities “has obscured this achievement,” the USPS Office of Inspector General said in a report issued April 18.

The USPS between 2006 and 2015 reduced the number of career employees, increased its use of noncareer employees, significantly reduced work hours, and downsized and restructured its network. These measures had the effect of cutting its labor costs and “keeping average real wage rates relatively flat,” the report said.

However, during that period, the USPS also reduced its ...