The letter mail (monopoly) portion of their business is declining rapidly and being replaced by parcel service. With parcel service they need to compete with a whole bunch of other companies, they need to have similar staff costs as their competitors or be much more efficient to survive. They also have to deal with their legacy costs from workers on pretty good pensions. They may be profitable right now but unless they keep finding efficiencies that won't last long.
There is nothing wrong with companies making a profit, unions tend to see any profit as a reason to ask for more and more (or to keep a current compensation level that isn't competitive). That isn't a "race to the bottom" it's the free market. Consumers will spend their money where the best price and/or best service can be found.
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