First-Ever Layoffs Loom at Postal Service---

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In U.S. Postal Service faces a serious financial shortfall that is accelerating reduction in it's workforce and raising the possibility of the first-ever layoffs of career employees. Reduce mail volume rising costs and a newly enacted cap on the rate increases all have taken a toll on the postal service finances.A gradual shift to electronic communications and the bill payment is shrinking the number of first-class letters,a mainstay of postal revenues.And the current economic downturn has led to drop in advertising mail volume. Increasing fuel prices have been a big factor in worsening postal finances,compounded by a legal restriction enacted two years ago against raising the price of most services beyond the rate of inflation.The cap on the rate increases was a major victory for the big mailing industry,but combined with rising costs,it has seriously squeezed the postal budget. Unionized postal workers have not yet experienced layoff,which been confined to have confined to casual employees a small percentage of the workforce. But Postmaster General john potter,after reporting losses of $2.3 billion in the fiscal year ending September 30,informed the union that 16000 craft employees (out of approximately 6,00,000) are not protected by contractual seniority-based no-layoff clauses. The postal service offering early retirement which, based on acceptance rate thus far,will have around 7,000 takers.In early 2009,when the number of early retirees may occur. DAY SHIFT ENDANGERED - Cost pressures are having other effects.Most of the sorting and processing of mail already occur between 3p.m. and 6 a.m. But,without notice to be affected unions,postal plan manager have been told to plan for an ending day shift operation. if implemented,this would force thousand of clerks (represented by American Postal Workers Union) and mail-handlers (National Postal mail-handlers Union)out of the most desirable day-shift assignments.