I realize the mailing industry seems to be concentrating on the pending price increase on January 22, 2012. Everyone is also paying attention to the possibility of an exigent price increase. The economy still isn’t where it needs to be for sure, and a postage increase will be tough…even if it is averaging a little over 2%.
However, Postal Reform is a topic that has gained steam in Congress. If a bill can be passed regarding retirement funding, the USPS will save billions of dollars. Not only that, but what ever happened to moving delivery days from 6 to 5?
According to the “21st Century Postal Service Act of 2011”, they’re pushing this decision off for two years, WHY? The excerpt is below…
Section 206 – Limitations on Changes to Mail Delivery Schedule
This section would prohibit the Postal Service from implementing its plan to eliminate Saturday delivery for at least two years. The implementation could only move forward if the following conditions are met: 1) the Postal Service identifies customers who may be affected disproportionately by five-day delivery and develops remedies; 2) the Postal Service makes full use of its authorities under current law and the new authorities and mandates included in this bill to increase revenue and reduce costs; and 3) after implementing all other savings options, the Postal Service determines that a five-day schedule is still necessary to achieve sustainability.
Section-by-Section Summary
Once that decision is made, and demonstrated through careful financial analysis, the Government Accountability Office (GAO) would review the Postal Service’s financial situation, projections, and the adequacy of the savings initiatives already implemented in order to determine whether the implementation of five-day delivery is financially necessary. The Postal Service would not be able to implement a five-day schedule unless GAO has made a determination that doing so is necessary.
This section specifies that where five-day delivery is implemented, there can be no more than two consecutive days without mail (e.g., on holiday weekends). The section also clarifies that the bill does not authorize further reductions in the delivery schedule for areas that may already have less than six-day delivery, nor any changes to the schedules for post offices, post office boxes, and mail acceptance.
According to the USPS, the postage increase on 1/22 is worth approximately $900MM. Postal Reform and the move from 6-day to 5-day would supposedly save the organization billions. I’m not a financial genius by any stretch, but shouldn’t we be focusing more on the billions? I’m also under the impression that they’ll take reform over 5-day deliver. Why not both??
It’s no secret that the USPS needs to do something, but we as an industry really need to start focusing on the low hanging fruit if at all possible. Especially if that fruit contains a 10-digit figure! Contact your local representatives and make sure they know how you feel.
What do you think?
Contact me: rcicha@sourcelink.com