Postal Workers To Get $2.8 Million -- For Nothing

By Eric Scheiner | October 14, 2011 | 1:43 PM EDT

( - In Sioux City, Iowa there are about 40 United States Postal Workers getting paid for doing nothing. What’s more interesting is that their checks may continue to be ‘in the mail’ for the next three-and-a-half years, which with benefits total more than $2.8 million.

The postal processing facility was closed down in early October, but not until after members of the postal union had signed a four-year contract in May, guaranteeing paychecks until 2015.

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Also included in the contract is a clause that allows them to be relocated only to facilities within 50 miles of their current facility. So if a job becomes available in an area further away, those employees would not be forced to take the job. Reportedly, there are no additional positions in the 50-mile area.

Postal officials who put their stamp of acceptance on the union contract are not commenting on the rationale for the negotiations in the contract process.

According to reports from the area, the salaries of the roughly 40 employees are expected to cost the U.S. Postal Service $1.7 million and $2.88 million when benefits are averaged in for the next three-and-a-half years.

The Associated Press and KCAU-TV report there is an estimated $2.8 million annual savings from merging the center's functions with another facility in the region.


Eric Scheiner
Eric Scheiner
Eric is the Senior Video Producer for