President Obama supports allowing the U.S. Postal Service to stop delivering mail on Saturdays and to start selling items other than stamps and shipping supplies at post offices nationwide, according to his deficit reduction proposals released Monday Donahoe says that the USPS needs to reduce annual costs by more than $20 billion to reach profitability by 2015. In the last four years, it has cut $12 billion out of costs. Donahoe is proposing the following eliminations: -$3 billion from sortation and transport (508 processing locations to 200; eliminating 35,000 positions) -$1.5 billion out of retail (closing 15,000 offices) -$2 billion from delivery (eliminating 20,000 city routes out of 144,000; eliminating 22,000 positions) -$5.5 billion from RHB Pre-Funding -$3 billion saved with 5-day delivery -$5 billion from flexibility, benefits and wages Letter carriers will receive their first cost-of-living adjustment (COLA) in three years in September The COLA will amount to 47 cents per hour ($978 annually). The 47 cents per hour amounts to $37.60 per pay period, and it takes effect in Pay Period 20 which begins Sept. 10 (pay date Sept. 30) --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- ---------------------------------------------------------------------------