Tag: USPS

A bill designed to make the Postal Service more competitive – and which might help head off the rate increase planned for next year – was passed overwhelmingly by the House Tuesday night. The measure was approved by a vote of 410-20. It will bring the post office into the 21st century, helping it avoid a “death spiral” of rising rates and declining business, Rep. Tom Davis, R-Va., said. The first major overhaul of postal operations in more than three decades keeps the requirement for the agency to provide service six days a week to every address, but gives the post office more flexibility in some operations and in rate setting. If passed by the Senate and signed by President Bush, the measure would relieve the agency from a requirement that it put USD3.1 billion in Civil Service retirement savings annually in escrow.

The US direct marketing industry has welcomed senators’ stamp of approval on moves to modernise the postal service. The Senate Committee on Homeland Security & Governmental Affairs last week passed the Postal Accountability & Enhancement Act of 2005, designed to safeguard the commercial viability of the US Postal Service (USPS). It is the largest service in the world, with more than 9 million employees. The legislation requires the USPS to establish a set of service standards for market-dominating products, and report annually to Congress on its progress. It introduces safeguards against unfair competition.
The Bill will also allow the Postal Regulatory Commission to review proposed rate changes before they are implemented.