Postal Worker Union Hires Ron Bloom to Stave Off Bankruptcy of USPS
The National Association of Letter Carriers (NALC), a labor union that represents employees of the US Postal Service, has reportedly hired former Obama administration official Ron Bloom to help save the USPS, and its members’ jobs. The union announced over the weekend that it had brought in Bloom, who was one of the advisors credited with helping US automakers make it through the financial crisis, as well as Wall Street bank Lazard Group to help find ways to avoid bankruptcy for the mail service.
The clock is ticking for the USPS, as it’s scheduled to make a $5.5 billion payment on November 18th to a retirement fund for its workers, and the independent agency does not have anywhere near that kind of money on hand because mail volume has been in decline for several years. The NALC said that Bloom and Lazard will help the USPS come up with a “pro-growth” business plan to stave off bankruptcy without making drastic cuts in staff or mail delivery service.
The bind that the USPS finds itself in should be familiar to Bloom, who was brought in after the financial crisis to help get General Motors and Chrysler back on solid ground after they filed for bankruptcy. Bloom also served as a White House adviser on manufacturing policy, but stepped down from that post in August.
“We are confident that Lazard and Mr. Bloom — both of whom have extensive experience helping to revitalize numerous large and complex business enterprises around the world –can provide valuable assistance to all stakeholders who share our commitment to maintaining and growing this vital national resource,” said Fredric V. Rolando, the president of the NALC, a powerful union that represents 280,000 postal workers.