Union Label & Service Trades Department, AFL-CIO 202-508-3700 unionlabel@unionlabel.org
Postal Banking: An Idea Whose Time Has Come (Again)

Postal Banking: An Idea Whose Time Has Come (Again)



By Debby Szeredy, Executive Vice President/American Postal Workers Union
Did you know that the United States had a successful Postal Savings System for more than fifty years? From 1911-1967, working Americans could open a savings account at their local post office, guaranteed through the full faith and credit of the United States and earning interest at 2 percent. At its height in 1947, the Savings System had $3.4 billion in assets (more than $35 billion in today’s dollars) or about 10 percent of the entire commercial banking system.

Today, our country is again in great need of affordable financial services. Nearly 28 percent of U.S. households (or 100 million people) do not have access to affordable financial services. A shocking 54 percent of African-American and 47 percent of Latino households are underserved by traditional banks.

For many, traditional banks are out of reach either geographically (bank deserted areas exist in both rural and urban communities), or due to high fees and other obstacles to opening, maintaining and accessing accounts. This lack of access drives millions (mainly the working poor) to rely on costly, predatory services such as check cashing and payday loans, trapping many in a cycle of debt.

Each year, the average underserved household spends $2,412 — nearly 10 percent of gross income — in fees and interest for non-bank financial services. The $100 billion a year Alternative Financial Services (AFS) industry has flooded the communities where the underserved live with products, services and practices that are expensive and often predatory, with typical interest rates of 391 percent!

As United for a Fair Economy puts it, “For the underserved, there is little opportunity to create a credit history, have access to affordable, safe and sustainable financial services, or build assets over time.”

The Postal Service is not in business to make a profit for shareholders. Its purpose is to serve the American people. This is in stark contrast to the predatory practices associated with alternative financial services such as payday lending or the high fees of many traditional banks.
The 2008 financial crisis led to widespread anger at, and plummeting public confidence in, big banks. As a result, the interest in alternatives to traditional banks has increased. Postal banking is a public, non-profit option.

“Banks are rapidly abandoning low-income and rural neighborhoods… Luckily, there is an organization with the public mission, the infrastructure, the experience and the well-trained employees needed to help address this problem: the U.S. Postal Service… The Postal Service already has a presence in low-income and rural communities, and it could leverage that infrastructure to provide access to lower-cost basic banking services,” writes Senator Elizabeth Warren (D-MA).


With more than 30,000 local post offices across the country, the US Postal Service is in a unique position to offer basic financial services. Many of those post offices are located in bank deserted areas. Fifty-nine percent of post offices are in zip codes with either zero banks or only one bank branch. The Postal Service is geographically well-positioned to reach people, whether rural, suburban, or urban, with little-to-no access to retail banking services.

After the financial crisis of 2008, public confidence in banks fell to 26 percent. But Americans consistently rank the U.S. Postal Service highest among all federal agencies with more than 70% of those polled saying it does an excellent or good job. According to a November 2014 Gallup poll, the age group that ranks the USPS highest is 18-29 year-olds, at 81%.

The U.S. Postal Service is already providing some financial services. Its workforce is trained and certified to handle many financial transactions including the sale of money orders, international money transfers, and cashing of treasury checks. USPS window clerks processed 500 million money order transactions over the past five years at a face value of $110 billion. That adds up to 378,000 money orders per day in 2014.
Postal Banking will help struggling families nationwide achieve financial stability and will benefit consumers who would prefer a more public option. And the expansion of services will strengthen our public Postal Service.

The Campaign for Postal Banking is a coalition of labor, consumer, financial reform, faith-based and citizen groups that is calling for low-cost, consumer-driven products and services that could range from check cashing to bill payment to savings accounts to small-dollar loans.
Visit www.campaignforpostalbanking.org to learn more and to add your voice to the call for affordable financial services at the post office!

Walk in my shoes–Richard Cucarese, Steelworker and USW Local 4889 Rapid Response Coordinator, Fairless Hills, PA

Walk in my shoes–Richard Cucarese, Steelworker and USW Local 4889 Rapid Response Coordinator, Fairless Hills, PA

After a brief stint in college, I worked for a non-union employer which did not offer health insurance, raises, or a pension. There was no security to be had, whatsoever. Looking for more stability, I applied for a job at the United States Steel, Fairless Works, and received my first taste of the union experience.
The most I’d understood about unions was conveyed by certain members of my family, and theirs was not a positive reaction. Instead of the “lazy, overpaid, unskilled workforce” that was articulated by them and others in my surrounding area, I found a very skilled and educated workforce. They were a hard-working group and very dedicated to producing top quality steel. I was also very impressed when they spoke about their Collective Bargaining achievements at the Local and International level in the areas of safety, pensions and benefits for their members and their families.
The members of Local 4889 were very involved in the community, and very informed with the political issues that affected our area.
Unfortunately, during the turbulent times of the 1980’s, when many steel plants were crippled by the illicit dumping of foreign steel on our shores, thousands of our brothers and sisters were forced out of work. The majority of our plant was shuttered and many, including myself had to find work elsewhere.
For over ten years, elsewhere meant very inferior paying jobs with no benefits, no pensions or 401K plans for their workforce. It also meant dealing with taskmaster bosses who had no regard for the health, welfare, or safety of their workers.
In 2005, my wife lost her job and her health insurance, both mainstays for our family. With a young daughter, and a baby daughter just born, I decided to take a ride to Local 4889, to see if they had any leads on prospective job opportunities. Not only did they have a lead, it was back in the only part of U.S Steel which remained open; our Galvanizing Line.
My union went to bat for me in a time of crisis. I was quite possibly months away from losing my house. Now, for the first time in years, I have a strong income, a pension, superior medical benefits and a safe work environment. My wife, five children, and I are a proud, active and grateful union family.

Spotlight the Label–SIU

Spotlight the Label–SIU

The Seafarers International Union, Atlantic, Gulf, Lakes and Inland Waters, AFL-CIO, represents professional United States merchant mariners sailing aboard U.S.-flag vessels in the deep sea, Great Lakes and inland trades.
SIU members sail in the three shipboard departments: deck, engine and steward. They work aboard a wide variety of vessels, including commercial containerships and tankers, military support ships, tugboats and barges, passenger ships, gaming vessels and many more.

Chartered in 1938, the SIU prides itself on representing the best-trained, most efficient crews in the world. A key to meeting that standard is the Paul Hall Center for Maritime Training and Education, located in Piney Point, Md. The center is a vocational training facility operated by an SIU-affiliated entity.
Today, the SIU is the largest North American union representing merchant mariners. It is a dynamic, politically active organization dedicated to protecting the membership’s job security by constantly staying a step ahead of the ever-changing needs of the industry.