According to a USPS issued financial report:

"Personnel costs, including compensation and benefits, retiree health benefits (including the PSRHBF requirement), and workersâ compensation costs represent approximately 79% of total operating costs. As a result of management initiatives, work hours during the first half of 2011 were reduced by 16 million hours. This is in addition to reductions of 75 million, 115 million, and 50 million work hours in fiscal years 2010, 2009, and 2008, respectively. Although significant actions have been implemented to decrease personnel costs, many are fixed by statute, regulation, or contract and, therefore, beyond the sole control of management. Wage rates and work rules affecting bargaining employees are contractually negotiated and are fixed for the duration of the labor contract; retirement benefits are determined by law, rather than by management; and health care premium costs continue to rise well above the rate of inflation."

What conclusions would you draw from that?