Postal Reform: Yea or Nay?

The postal reform bills circulating in Congress at press time (early June) should offer some relief for mailers and the USPS, but of course, they’re not panaceas for all that ails. For instance, according to the Associated Press, Potter is warning about a measure that, if enacted, would require the USPS to pre-pay health benefits for retirees. He says such a provision would cost the agency $3.9 billion in 2006 and would add 6.5 percent to first-class mail rates. Moreover, Potter says, the bills don’t adequately address the issue of pricing flexibility for certain USPS services such as package delivery. This, he notes, could compel shippers to switch to other carriers, thus contributing to the agency’s downward volume spiral.