IF MAILERS THOUGHT they had the ins and outs of postal rate categories and preparation nailed down, they may need to think again. The U.S. Postal Service plans to implement a reclassification by the summer 2004.
Postal officials say the reclassification–which they’re calling a product redesign–will lead to increased volumes and revenue as the service faces back-to-back deficits of between $1 billion and $3 billion over the next two years.
Read MoreAggressive Cost Cutting Results In Lower Than Projected Request.
The Board of Governors of the Postal Service said today they will propose a three-cent increase in the price of a First-Class stamp as part of an overall rate increase request, which is less than 9 percent. The request will be formally submitted to the Postal Rate Commission later this month and is well below initial predictions of 10 to15 percent. For the past 30 years, the price of stamps have tracked the Consumer Price Index
Overall the USPS will be requesting an 8.7 % increase. For First Class mail, the USPS will be asking for a 3 cent increase on the price of a First Class stamp, which equates to an average 8.2 % increase. For Standard Mail, the increase would be 7.3%, for Packages, 9%, for Periodicals, 10.0%, for Priority Mail, 13.5%, and for Express Mail, 9.7%. Details on the many rate cells associated with this filing won’t be ready until later this month. (figures from postcom.org)
Read MoreFacing a deficit of more than $1 billion this year, Postmaster General Jack Potter yesterday announced the immediate elimination of 800 headquarters jobs and an overall 30 percent reduction in regional management staff around the country over the next several months that could result in several thousand more job cuts.
Read MoreLate in the day and prior to today’s Board of Governors meeting the USPS PMG
announced the first stage in his reorganization. There are a great deal of management positions gone and there are several new names in those that are
retained. In addition several positions have been reduced from senior
VP to VP. In addition the expidited-parcel area is not contained within
this workup. This is to come. International moved from operations to
sales.
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