WASHINGTON -- The U.S. Postal Service said yesterday it lost $1.9 billion over the last three months and warned that losses would continue to mount without help from Congress.
The loss for the quarter ending March 31 was narrower than last year's, but the service continues to lose money at a rapid pace because of a decline in mail volume and a congressional requirement that it make advance payments to cover expected health care costs for future retirees -- something no federal agency does.
Postmaster General Patrick Donahoe said the agency is considering negotiations with unions to reduce labor costs and another increase in prices.
Donahoe said the Postal Service, which receives no tax dollars, would continue to pursue legislation allowing it to end Saturday mail delivery and reduce health and other labor costs. -- AP