Mailing industry organizations outline objections to iPost bill

Mailing industry organizations outline objections to iPost bill

Thirty-six organizations involved in the mailing industry yesterday (3 February) released a letter in opposition to Senator Tom Carper’s iPost bill, arguing that “a solution to the Postal Service’s financial challenges that forestalls network rationalizing cost-savings measures is not a long-lasing solution at all”. The organizations took particular exception to the fact that bill would – in their words – “impose a multi-year moratorium on facility and post office consolidations and closures, while at the same time making permanent a temporary ‘exigent’ rate hike which is due to expire in April”.

The group insisted that the resolutions outlined in the “iPost” bill will not alleviate the Postal Service’s larger, fundamental problems.

“Those problems will not be solved by imposing statutory rate increases and preventing cost-saving measures that have the potential to save the Postal Service billions of dollars per year,” they maintained.

The letter outlined the group’s support for the USPS, but emphasised their objections to making permanent the exigency rate: “Our organizations remain committed to the Postal Service and its long-term viability. Mail continues to be the lifeblood of many businesses and nonprofits, and each of our organizations stands at the ready to work with Congress and the Postal Service to help solve the complex issues facing the organization today.

“We remain willing to support constructive measures that were touched on during the hearing that, if adopted, could enhance the Postal Service’s financial stability going forward. These include Medicare integration and restructuring of the Postal Service’s retiree health and pension benefit obligations, for which there is indeed consensus among the Postal Service, employee groups and the full mailing community.

“However, we cannot support non-consensus and unbalanced proposals – among them, the first Congressionally-mandated general increase in postal rates since 1968. By its very nature, an exigency rate is not a permanent rate. Both the independent Postal Regulatory Commission and the U.S. Court of Appeals have affirmed this point. Temporary fixes should not be mistaken for long-term solutions at the expense of the large mailing industry.”

Click here to view a statement from the 36 organizations and the full text of the letter they sent to Senator Johnson.

About The Author

Ian Taylor

Ian Taylor is the Editor of Triangle’s Mail & Express Review Magazine and the portal. Ian has been a business journalist for almost 30 years, editing and writing for a wide range of magazines and newspapers with a particular focus on the transport and logistics industries.

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