Friday, June 14, 2013

Coalition Fights Postal Rate Increases

The Affordable Mail Alliance, a coalition of Postal Service customers, has been reestablished to defeat an expected Postal Service proposal to raise postage rates by as much as five times the rate permissible by law.  The Postal Service Board of Governors, who must approve the Postal Service’s request, is set to decide on the matter imminently.  
The law permits the Postal Service to raise postage rates annually, consistent with the rate of inflation, a standard that should satisfy any well run organization in today’s economy.  But a combination of declining revenue and increasing costs has the Postal Service poised to inflict on its customers an “exigent” rate increase designed to subsidize an outdated infrastructure in need of change.  Most private sector companies have already made major structural and operational changes in recent years in order to survive.  The USPS needs to do the same.