Vast majority of mailers, by volume and revenue, come together to discourage misguided postal rate hike proposal
2/27/18 WASHINGTON – Today, an unprecedented coalition of more than 50 leading associations, companies, nonprofits, magazines, newspapers and other stakeholders joined forces as the American Mail Alliance to advocate for a common sense approach to setting new postal rates, promoting the long-term health and success of the United States Postal Service (USPS), and opposing the radical postal rate increases proposed by the Postal Regulatory Commission (PRC), the independent regulatory agency tasked with USPS postage rate oversight.
The American Mail Alliance represents the vast majority of mailers, by volume and revenue, in the $1.4 trillion mailing industry. The coalition has come together as the PRC takes the next step in its 10-year review of postage pricing. As part of that process, the PRC has proposed a dramatic increase in postage rates by as much as 40 percent over five years.
In a major filing today with the Postal Regulatory Commission, American Mail Alliance members argued that the PRC’s proposal will do lasting harm to the Postal Service and ultimately to the American people. Such a dramatic increase in rates will put many mailers – such as nonprofits – out of business.
“Nonprofits don’t just use the Postal Service to communicate with their members, they rely on the Service for their financial survival. The PRC proposal will shift dollars away from nonprofits and others, and totally decimate programs and outreach that so many Americans rely on,” said Stephen Kearney, the Executive Director of Alliance of Nonprofit Mailers who previously served as a senior executive at the Postal Service for more than 30 years.
The PRC is an independent agency with representatives from both political parties: Robert G. Taub (R), Tony Hammond (R), Mark Acton (R) and Nanci E. Langley (D).
“The PRC must focus its attention on demanding higher productivity levels and improved efficiency at USPS before imposing punitive rate hikes,” said Linda Thomas Brooks, President of the Association of Magazine Media. “Increasing rates will only serve to harm customers, businesses, and USPS itself. The PRC proposal comes at a time when the Postal Service is fighting to retain business. Therefore, the USPS’s remaining customers should be encouraged to stay with USPS, not penalized with higher rates. The PRC has to concentrate on streamlining and modernizing the Postal Service. Throwing mountains of cash at the Postal Service’s problems and hoping that it works is not the solution.”
The PRC is tasked with balancing multiple criteria when establishing rates, but this proposal elevates one criterion – giving the Postal Service more revenue by raising rates – and ignores all other considerations.
“It’s not too late,” continued Kearney. “There’s still plenty of time for the PRC to reconsider its approach and produce a balanced approach that considers all nine criteria that the law stipulates.”
The American Mail Alliance submitted its joint comment on February 27. To view the full filing, click HERE.
Below please find key excerpts from the American Mail Alliance’s joint filing with the Postal Regulatory Commission.
AMA’s members unanimously believe that the Commission rulemaking proposal will do lasting harm to the Postal Service. It will put many mail and supply chain stakeholders out of business, force them out of the mail, or push them to find – or create – alternative, cheaper, and more stable distribution methods.
[…]
The proposed rule comes at a time when the Postal Service is fighting to retain business.…What rational business dramatically raises price in a competitive environment of reduced demand?
[…]
To varying degrees, we have significant reservations about whether the Postal Service has made wise operating choices in handling certain types of mail, including “underwater products.” But, the plain truth is that for those products, an extra 2 percent per year on top of the huge base rate change proposed for all Market Dominant products, compounded, will be devastating.
[…]
The Postal Service is a unique institution, which makes comparisons with other businesses tricky. But this is not the first time a venerable enterprise with a long history has confronted a crisis. The history of U.S. commerce is brightened by companies that have achieved remarkable turnarounds. Corporations such as Apple, Chrysler, Disney, HP, IBM, and others have faced near disaster. The key to a successful turnaround or reinvention often depends on a particular set of circumstances, but there is one thing you will not find. There is no precedent for an organization in any industry that succeeded through exorbitant price increases in the face of weak demand.
To read more about the American Mail Alliance visit, www.AmericanMailAlliance.com.
Miss Wong, I can’t help but remember all the times that Ratpublicans, especially businessmen, just love hand outs from taxpayers! The rich crave their wealthfare. Why should the rich pay for anything when they can suck off the taxpayer? Remember when the city of Detroit cut the annuities of their retired employees? At the same time the state of Michigan spent 110 million for a new arena for the Detroit Redwings. Why didn’t the owner of the Redwings pay for the arena? Why should he when he can leach off the sucker taxpayer!
Once again being from Michigan, I agree that common sense is in short
supply here. To those making the choices, they make unsound ones. They blame anyone who questions this as if you have mental illness. The
people of Flint can give you an ear full of what it takes to press your point to someone unwilling to listen. I have heavy metal Poisoning like
them,and Michigan is in a state of being lost without the truth.
The postal service is a dying elephant especially at elephant plaza in Washington! Not only do they not hear their own employee’s complaints but to reason with some semblance of understanding what would be best for the future of the organization, cry out for more money- you have such a waste at the top and too many Mismanagers it’s pathetic! Let Amazon unplug from the PO and watch the bastards run down the street to congress for a handout , be begging to lie about their grossly inflated Performance awards(aka-BONUS’) to undeserving bonehead Mismanager’s that try to re-invent the wheel everyday! Worst run organization on the planet hands down-(they-upper level districts and Washington could care less, cause they are above the hierarchy of productive business. Anybody else who used this as a business model would be OUT OF BUSINESS!
Oh come on! We know these regulators will keep cutting wages and benefits to give in to BIG BUSINESS and also to keep adding to the postal services management ranks. How do you expect these CEO’S and companies like AMAZON to make it unless we employees make cheap,cheap wages? YOU ALL KNOW THAT EVEN POSTAL MANAGEMENT CAN’T SURVIVE WITHOUT RIDING ON THE BACKS OF IT’S EMPLOYEE’s!
Keep cutting those that move the product and Services to Customers….but management?….crickets…..end is near.
This wouldne happen to be the same Stephen Kearney who collectsd a paycheck from the Post Office for 33 years, would it?
You, my friend, win the prize. The truly smart ones grab their pensions from Uncle and then go to work for the contractors, where the real money is. It’s not just the PO, it’s across the board.
Dumber and Poorer!!!!!!
I agree that rates must be increased by significant percentages to ensure the viability of the USPS. And the place for those increases is bulk mailers. They have been mommy coddled and spoiled rotten for decades, paying absurdly low postage rates for the mail we want the least.
After my 32+ years as a city carrier, I became more and more convinced that bulk business mail was all but totally ignored by my customers. Pizza marriage mail with loose pieces inside were nothing but litter, hard to fold and handle. They also weighed a ton, and helped permanently ruin my back. Then barrages of ads and EDDM’s for lawn care services at apartments where groundskeepers did the mowing and trimming, scare tactic flyers announcing some Armageddon obsessed preacher that went to every house, or the tons of crooked “evangelists” out there who plague the mail stream with chintzy “prayer clothes” or other “Christian” trinkets and don’t pay postage because it’s “non-profit”, funeral homes advertising rates for people who are a long time away from needing them, etc.
The bulk mailers will bitch, but they’ll pay. It’s time to hit those who fill our trash cans with their worthless shit instead of first class and second class mailers, like periodicals and newspapers. And when will this country and the Postal Service call bullshit on the aforementioned Christian crooks and make them pay for postage when we know they are taking millions from gullible people who don’t know better?
I doubt we’ll see that increase amount to much, because the PRC probably doesn’t have the guts to charge junk mailers the rates they deserve, not to mention just covering the labor expenses for handling that useless shit.
Would love to see Amazon pay their fair share. They’re robbing us blind.
Mailers like Democrats just want a free ride on Other Peoples Money!
These “mass mailers” have yet to get it through their thick, mindless skulls that they are obsolete dinosaurs in this digital age… JUST like the Postal Service!
The Postal Service must cut unnecessary expenditures. First get rid of regional office jobs then look at headquarters jobs. And the way postal customers are treated must improve. I noticed another person had problems with Parcel insurance. Not only does the Postal Service do everything they can to anger their employees, they do what they can to push the Postal mailer away! Just keep it up fools.
I think your on to a truth that all must contemplate. The fat at USPS is
in the Management ranks. The abuse of the help, or abuse of customers
always is a losing circumstance. You are the history buff, and I’m surprised you haven’t pointed out the Henry Ford story. Henry Ford had
many short comings, but he did understand that you must pay your
help a good living wage to even sell your own product. At USPS the
real value is the much like yourself Mr Mailman were the tire meets the
road. Thank you for your efforts along with most of your fellow workers.
They want to increase postal rate so that those in the upper mediocre of management can get more bonuses and pay. Stop the waste, and stop hiring idiots and watch how the Postal Service make more money. We need Managers who have business experience in making money not wasting money. We don’t need officers whose greatest qualifications are just length of service, and operational experience but with stagnant mindset and a mediocre outlook.
These leaches are getting huge discounts for mail that
is the most labor intensive at the plants that sort and
deliver this mail. These leaches are reaping huge profits
and the PO is getting crumbs. Stop this insanity and charge
these companies a fair price for delivering their products.
Profits on the backs of the crafts must end.
Crying the blues ..but making the green
Of course the mailers don’t want to pay more….duh. In the meantime, let us keep delivering junk mail for pennies costing the PO millions of dollars/year in Overtime….. sounds like a really sound business practice to me. It’s actually quite funny….. I’ll just keep cashing my checks with OT and double time on them…. oh and by the way- where are these mailers going to go if we raise rates? nowhere
It’s about time….these mailers have underpaid for years and years!!! Now that they (the mailers) just got a huge tax break as part of the “tax reform bill” let them start paying the “real price” for postage. Hopefully the sweetheart deals are over and they can share some of the 14 % tax break they just got…because the USPS didn’t get any breaks from Congress!!
The mailing industry lies as much as Trump
It’s about time that these rates are increased. The junk that we have to sort by hand costs the Post Office plenty. The rate for an EDDM mailing is pathetic. Raise the rates!!!!!!