Postal Workers May Pay for Own SalvationLegal Compliance Resource
September 4, 2013 — 1,024 views
The Federal Employees Health Benefits Program (FEHBP) is currently letting go of the U.S. Postal Service (USPS) from its initiative. Critics say that this action could have the effect of preventing the next financial crisis. However, the downside is that postal workers will suffer greatly because of this motion. The Government Accountability Office (GAO) has noted this grave fact in the FEHBP’s decision; they also note the fact that this motion would mean that the USPS would enjoy a large financial bonus. On the unfortunate side, the same motion would also imply that current employees will suffer from an increased cost for the sake of their health care program.
Reasons Behind the Drastic Decision
This decision of the Postal Service will have to be accepted by Congress, and there are sections pertaining to both the House as well as the Senate. This motion will bring up a number of issues for them. The first major concern is the basic financial instability that the Postal Services are being threatened with. Their case is being presented based on the fact that they face liquidation in the near future if they do not try to cut corners in some fashion. Due to this they must present their financial statements and books so that the legitimacy and urgency of the matter is noted.
Resistance Against the Motion
However, because of the uproar among the current employees of the organization, unions for the workers and individual employees are doing their best to prevent this from being approved. If this is not passed, and if the firm shuts down due to the inability to maintain the cost of running the organization, then the employees of this network are once again faced with a major financial burden. The case seems to be a double edged sword wherein the workers in the Postal Service are faced with two negative options from which they must accept the less severe one.
Another discrepancy discovered by the GAO in this matter is that the statements made by the organization and the presentation of their new plan for health insurance may not work out effectively. The estimates made and the essence of the plan itself may save a large amount of money for the USPS, however, there is a high chance that the funds will not sustain the number of health problems that its employees may have to cover. The estimates are said to be overly optimistic, which is why it may not work out.