POSTAL REFORM PRESSURE MOUNTS
POSTAL REFORM PRESSURE MOUNTS.(Brief Article)
From AMERICAN PRINTER, February 1st, 2001
COPYRIGHT 2001 Information Access Company
The pressure to reform is mounting as the board of governors of the U.S.
Postal Service (USPS) approved “under protest” the recommendation of the Postal Rate Commission (PRC) to increase postal rates on January 7. By approving the increase “under protest,” the board is approving the rate hike but returning its decision to the PRC for further consideration. The board believes that the rate hike is inadequate to cover the agency’s growing costs.
Much of the USPS’ financial woes are due to an increase in labor costs. The National Assn. of Letter Carriers was awarded a step pay increase last year, and this year, the American Postal Workers Union–representing postal clerks–will begin contract negotiations. “When 82 percent of your product is labor, if you can’t fire anybody, what do you do?” remarks Frederick P.
Seymour Jr., an active postal reform proponent and president of Frederick P.
Seymour and Associates, Inc. (Northfield, IL), a graphic arts management and engineering consultancy. “The USPS is obliged to give carriers union wage, cost of living and grade increases because their jobs are becoming more difficult.”
In addition, the USPS reported a loss of $199 million in 2000. The agency is feeling the financial effect of automating its equipment–which will ultimately increase production but nonetheless is expensive to implement.
Rather than a Congressional review of postal regulations–an approach that has been tried in the past and failed–Seymour supports an academic review.
Reform proponents have suggested that an independent presidential commission be appointed to review the changes impacting the USPS, including the decreasing demand for First Class mail due to competition from e-mail.
Seymour notes that markets likely to be hurt most by the January postal increase include third-class mail, which has the sharpest hike in rates, catalogs under one pound and direct-mail advertising. Publications were expected to receive a 14.7 percent increase in rates, but due to publishers’ protests, this number has been cut to 9.9 percent.
Another rate case is expected to be filed in June 2001, with new rates in place before July 2002. For publishers, it may seem that yet another postal rate increase defies logic. But as Seymour notes, “There is no way to look for justice in a postal rate case–it is purely where nickels bounce. This system has to be changed somehow.” For details on the rate increases and a downloadable version of the governors’ recommendations, visit www.usps.gov.
Page 12;Volume 226;Issue 5
THIS IS THE FULL TEXT: COPYRIGHT 2001 PRIMEDIA Intertec, a PRIMEDIA Comp
COPYRIGHT 2001 Gale Group
AMERICAN PRINTER, 01st February 2001
