The average weight-per-piece in Periodicals Mail has gone down this year, which probably means many publications have less advertising due to the slowing economy.
Since the advertising portion in Periodicals rates makes up a larger part of the cost coverage than the editorial portion, one has to wonder what impact this might have on the cost coverage in Periodicals Mail.
Never mind that postal reform has gone nowhere in Congress for more than seven years. United Parcel Service is confident that this is the year of postal reform and happily predicts the end result will be more pricing oversight and very little commercial freedom for the U.S. Postal Service until it can figure out how to manage its monopoly business and stop hemorrhaging money.
Read MoreThe U.S. Postal Service is staring at a $2 billion deficit this year, yet the postmaster general has told its top managers they could see performance bonuses of up to 25 percent of their salaries. “This year our productivity is up,” Postmaster General John Potter said in a July 3 letter to 900 senior executives. “By pulling together, we can minimize our loss and earn additional pay for the performance achieved.” The USPS was criticized this year when it paid out $197 million in bonuses, or incentives, as the Postal Service calls them, despite a $199 million deficit for last year. But this would be the first time the agency, a self-supporting government monopoly, would be granting bonuses in the face of such monumental deficits.
Read MoreThe big problem with the Postal Service is not its policies of price rises and eliminating Saturday deliveries, the big problem is that it is a monopoly and that the government keeps it a monopoly by law. Call for privatisation.
Read MoreThe U.S. Postal Service will continue delivering mail six days a week, its board chairman said Tuesday.
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