STRATEGIC VIEW
The Administration has released the 2013 budget for the federal government. Contained in this budget are several proposals affecting the Postal Service. The Administration would like to provide the Postal Service with financial relief while undertaking certain reform measures.
The Postal Service published its unaudited December results with the Postal Regulatory Commission. The USPS lost $1.4 billion in December 2011. The Postal Service’s controllable operating income for the month was $100 million. The loss is due to the Postal Service Retiree Health Benefit Fund prepayment of $1.2 billion and a workers compensation adjustment of $309 million.
The USPS is, for the second consecutive year, is planning a summertime promotion for direct mailers that use two-dimensional barcodes, USPS VP of domestic products Gary Reblin told Direct Marketing News on Jan. 31. Reblin said last year's barcode promotion — which gave mailers a 3% discount on qualifying Standard and FCM letters, flats and cards — was so successful that the USPS's board of governors urged that another promotional program be developed for this year.
RULES AND REGULATIONS
The Postal Regulations Commission (PRC) has issued its final rules regarding appeals of Postal Service determinations for post office closures or consolidations. The Commission found that some of the proposed rules generated opposition, while other were uncontroversial. The PRC believes that it is beneficial to promptly adopt rules that were unopposed. Some rules were modified if appropriate and adopted, while others were deferred for further consideration.
The PRC has denied the Postal Service’s request for the procedural schedule recently established in Docket No N2012-1 Mail Processing Network Rationalization Service Changes, 2012 be reduced by several months. The Commission said, “Such a substantial reduction in schedule appears inconsistent with due process afforded all participants when conducting a hearing on the record.”
OPERATIONS MADE EASY
The USPS held a webinar with some of its business customers to provide an update on the status of its proposed changes in service standards and network optimization. Postmaster General Pat Donahoe led the webinar, which provided an update on issues raised by PostCom and others concerning the USPS’ proposed changes. Donahoe assured mailers on the webinar that while everything is dynamic at this point in terms of network realignment and changes in service standards, the USPS will work closely with customers on options and solutions, and will do its utmost to maintain the long-term affordability of mail and a high level of service.