The Wall Street Journal A3 English (Copyright (c) 2004, Dow Jones & Company, Inc.)
The U.S. Postal Service is expected to start seeking approval for an increase in postage rates of at least 10% early next year.
Such a rise would push the price of a first-class stamp to at least 41 cents -- and hurt consumers and businesses that already have shouldered three rounds of rate increases in the past few years.
First-class stamps have jumped 12% since early 2001, with the last increase of three cents to the current 37 cents coming in 2002. Higher rates also could make it tougher for the Postal Service to hold on to customers defecting to e-mail and online bill payments instead of first-class mail and to package-delivery rivals such as United Parcel Service Inc., Atlanta.
The unusually hefty size of the expected new rate increase stems partly from the demise of proposed legislation that would have allowed the post office to take advantage of about $3 billion a year in pension-fund savings resulting from a change in how it contributes to a federal retirement fund. The bill also would have freed the Postal Service from future pension payments to certain postal workers who served in the military.
Ralph Moden, the Postal Service's senior vice president of government relations, said the agency already was planning to file for a rate increase early next year to "cover inflationary pressures." But the needed price increase likely will be in the double digits if the post office has to keep contributing to the pensions of veterans and can't tap the pension-fund savings, he said.
Big mail users have been worried about a rate increase for months, and the postal bill's failure has them bracing for a large increase.
Neal Denton, executive director of the Alliance of Nonprofit Mailers, a trade group that represents charities, predicted that many members will have to look for less expensive alternatives to the mail. "Smaller churches and charities . . . will be hit the hardest," he said.
The specter of a double-digit rate increase has grown as it became clear in recent weeks that postal-overhaul legislation wouldn't make it out of Congress this year, despite unanimous approval by committees in the House and Senate. While Congress is expected to return to session for a few days in December, the prospects that a postal bill will be passed are seen as slim.
The proposed legislation would give the Postal Service more flexibility to operate like a business, including streamlining the cumbersome rate-setting process, which typically drags on for almost a year and pits the post office against some of its largest customers and package-delivery rivals.
The higher rates aren't likely to take effect until early 2006. The Postal Service must submit its rate-increase request to the Postal Rate Commission, which has as many as 10 months to issue a recommended decision to the Postal Service's board of governors. The Postal Service has pledged repeatedly not to raise rates until 2006, but the lengthy rate-approval process is expected to trigger the request for an increase sometime in the spring.
The pension changes would help the Postal Service reduce the size of its next rate increase, partly by returning responsibility for $27 billion in pension obligations to the Treasury Department.
For the nine months ended June 30, the Postal Service had a profit of $2.82 billion on revenue of $52.09 billion. The volume of first-class deliveries, which generate more than half of the agency's revenue, fell 1.4%. While the Postal Service has been thinning its enormous work force to cut costs, it still must cope with making deliveries to 1.7 million new addresses a year.
Thank You, upper management for the waste of money you do like sponsor Lance Armstrong,Mystery Shopper,and these stupid stand up talks on the same thing over and over or watch a tape and alot of other things I could go on about.Why don't you raise the bulk mailers instead of charging the average consumer. You are killing the Postal Service POTTER.
CONTRACT YEAR COMING SOON (CRAFT PEOPLE WILL BE BLAMED), WORKFORCE CUT DOWN PLENTY, OVERTIME TO COMPENSATE UP THE WAZOO. SERVICE TO THE PUBLIC IN A WORD SUCKS OF COURSE LETS RAISE THE RATES & LOOK EVEN MORE RIDICULOUS THAN WE DO NOW. I GIVE THANKS EVERYDAY FOR HAVING A DECENT PAYING JOB & THEN SHAKE MY HEAD THE WHOLE DAY WONDERING HOW WE STAY IN BUSINESS.
Your blaming Bush for this, get a grip folks. Learn where the money is going. Management isnt the cause either (I was both craft and management), your Congressman is. They failed to vote on the Postal Remform Act and they also owe, yes OWE the Postal Service Billions $$$$$$$$$$ of dollars in funding for Frank mail and free mail for the blind that they have reniged on for many years. This has been a problem for a long time.
THE FUTURE OF THE POSTAL SERVICE LIES IN THE HANDS OF POSTAL MANAGEMENT AND THE UNIONS AT THE HIGHEST LEVELS..THE CRAFT EMPLOYEES HAVE SACRAFICED LONG ENOUGH. IT IS TIME TO SACRAFICE FROM THE TOP...
Wake up Craft workers and stop blaming Mgt. All of u that voted for Bush are to Blame. He Killed off the Postal Reform Bill. The Government owes us so much money that the War Monger needs to punish the USPS for his spending failures. You will all see at your next Pay Negotiations. You will get NOTHING... Good voting boys and girls. you have the President you wanted. Now stop WHINING......
It's not the crafts fault that were in the bind it's the clowns in upper management in d.c that waste money and management inthe plants that call overtime when it's not needed.I agree that if they quit wasting money on mystery shopper program,standup talks which is the same crap we have heard over and over.Why do they stop the mail from moving for 10 to 30 minutes when all the mail could of been moving and then they turn around and call overtime.Why did they waste so much money sponsoring Lance Armstrong.Why don't they give people that want overtime to them and people that don't let them go home after there tour is over.Quit wasting money Upper Management.Don't raise prices on first class stamps instead raise it on the bulk mailers and the discounts they give these big companies.Quit charging more to the average joe who will keep going to e-mail and we will be put out of business because of these idiotic decisions by upper management in D.C.
It's not the crafts fault that were in the bind it's the clowns in upper management in d.c that waste money and management inthe plants that call overtime when it's not needed.I agree that if they quit wasting money on mystery shopper program,standup talks which is the same crap we have heard over and over.Why do they stop the mail from moving for 10 to 30 minutes when all the mail could of been moving and then they turn around and call overtime.Why did they waste so much money sponsoring Lance Armstrong.Why don't they give people that want overtime to them and people that don't let them go home after there tour is over.Quit wasting money Upper Management.Don't raise prices on first class stamps instead raise it on the bulk mailers and the discounts they give these big companies.Quit charging more to the average joe who will keep going to e-mail and we will be put out of business because of these idiotic decisions by upper management in D.C.
This is simply the run-up to contract talks folks. After the last extension was signed the post office "suddenly" found BILLIONS in dollrs and declared no rate hike would be needed for as many as six years. Really? Were they wrong then or now? Contract time guys = poor mouth time. Don't believe it!
#1 reason for destruction of morale and fiscal competency..FORCED OVERTIME WHEN THERE IS NO WORK..HOLIDAY DRAFTING ONLY TO BE SENT HOME AFTER A FEW HOURS..WHY........ NO WORK!!!!!!!NEXT TIME THE POSTAL SERVICE CRIES ABOUT THEIR BUDGET..THEY NEED TO REALIZE THEY ARE PISSING AWAY MILLIONS ON THIS MORALE DESTROYING PRACTICE.
Stop blaming the president and blame yourselves. Most Americans use email instead of mailing letters and we also pay our bills online. USPS has been hit hard because of this and now they can't afford to pay their federal employees. You can't fire them. So, to compensate for what we have done to them they are raising the price of stamps even higher. It's when the government decides to find away to charge you to send email you should start to complain.
15 comments:
The Wall Street Journal
A3
English
(Copyright (c) 2004, Dow Jones & Company, Inc.)
The U.S. Postal Service is expected to start seeking approval for an increase in postage rates of at least 10% early next year.
Such a rise would push the price of a first-class stamp to at least 41 cents -- and hurt consumers and businesses that already have shouldered three rounds of rate increases in the past few years.
First-class stamps have jumped 12% since early 2001, with the last increase of three cents to the current 37 cents coming in 2002. Higher rates also could make it tougher for the Postal Service to hold on to customers defecting to e-mail and online bill payments instead of first-class mail and to package-delivery rivals such as United Parcel Service Inc., Atlanta.
The unusually hefty size of the expected new rate increase stems partly from the demise of proposed legislation that would have allowed the post office to take advantage of about $3 billion a year in pension-fund savings resulting from a change in how it contributes to a federal retirement fund. The bill also would have freed the Postal Service from future pension payments to certain postal workers who served in the military.
Ralph Moden, the Postal Service's senior vice president of government relations, said the agency already was planning to file for a rate increase early next year to "cover inflationary pressures." But the needed price increase likely will be in the double digits if the post office has to keep contributing to the pensions of veterans and can't tap the pension-fund savings, he said.
Big mail users have been worried about a rate increase for months, and the postal bill's failure has them bracing for a large increase.
Neal Denton, executive director of the Alliance of Nonprofit Mailers, a trade group that represents charities, predicted that many members will have to look for less expensive alternatives to the mail. "Smaller churches and charities . . . will be hit the hardest," he said.
The specter of a double-digit rate increase has grown as it became clear in recent weeks that postal-overhaul legislation wouldn't make it out of Congress this year, despite unanimous approval by committees in the House and Senate. While Congress is expected to return to session for a few days in December, the prospects that a postal bill will be passed are seen as slim.
The proposed legislation would give the Postal Service more flexibility to operate like a business, including streamlining the cumbersome rate-setting process, which typically drags on for almost a year and pits the post office against some of its largest customers and package-delivery rivals.
The higher rates aren't likely to take effect until early 2006. The Postal Service must submit its rate-increase request to the Postal Rate Commission, which has as many as 10 months to issue a recommended decision to the Postal Service's board of governors. The Postal Service has pledged repeatedly not to raise rates until 2006, but the lengthy rate-approval process is expected to trigger the request for an increase sometime in the spring.
The pension changes would help the Postal Service reduce the size of its next rate increase, partly by returning responsibility for $27 billion in pension obligations to the Treasury Department.
For the nine months ended June 30, the Postal Service had a profit of $2.82 billion on revenue of $52.09 billion. The volume of first-class deliveries, which generate more than half of the agency's revenue, fell 1.4%. While the Postal Service has been thinning its enormous work force to cut costs, it still must cope with making deliveries to 1.7 million new addresses a year.
Yet the PO continues to hire these military stiffs who go right into light duty...forever.
Viva el Jefe Bush
Pedro Gonzales
Thank You, upper management for the waste of money you do like sponsor Lance Armstrong,Mystery Shopper,and these stupid stand up talks on the same thing over and over or watch a tape and alot of other things I could go on about.Why don't you raise the bulk mailers instead of charging the average consumer. You are killing the Postal Service POTTER.
CONTRACT YEAR COMING SOON (CRAFT PEOPLE WILL BE BLAMED), WORKFORCE CUT DOWN PLENTY, OVERTIME TO COMPENSATE UP THE WAZOO. SERVICE TO THE PUBLIC IN A WORD SUCKS OF COURSE LETS RAISE THE RATES & LOOK EVEN MORE RIDICULOUS THAN WE DO NOW. I GIVE THANKS EVERYDAY FOR HAVING A DECENT PAYING JOB & THEN SHAKE MY HEAD THE WHOLE DAY WONDERING HOW WE STAY IN BUSINESS.
Close those useless expensive non-productive plants now!
Before it is too late.
Your blaming Bush for this, get a grip folks. Learn where the money is going. Management isnt the cause either (I was both craft and management), your Congressman is. They failed to vote on the Postal Remform Act and they also owe, yes OWE the Postal Service Billions $$$$$$$$$$ of dollars in funding for Frank mail and free mail for the blind that they have reniged on for many years. This has been a problem for a long time.
THE FUTURE OF THE POSTAL SERVICE LIES IN THE HANDS OF POSTAL MANAGEMENT AND THE UNIONS AT THE HIGHEST LEVELS..THE CRAFT EMPLOYEES HAVE SACRAFICED LONG ENOUGH. IT IS TIME TO SACRAFICE FROM THE TOP...
Wake up Craft workers and stop blaming Mgt.
All of u that voted for Bush are to Blame. He Killed off the Postal Reform Bill. The Government owes us so much money that the War Monger needs to punish the USPS for his spending failures.
You will all see at your next Pay Negotiations. You will get NOTHING... Good voting boys and girls. you have the President you wanted. Now stop WHINING......
It's not the crafts fault that were in the bind it's the clowns in upper management in d.c that waste money and management inthe plants that call overtime when it's not needed.I agree that if they quit wasting money on mystery shopper program,standup talks which is the same crap we have heard over and over.Why do they stop the mail from moving for 10 to 30 minutes when all the mail could of been moving and then they turn around and call overtime.Why did they waste so much money sponsoring Lance Armstrong.Why don't they give people that want overtime to them and people that don't let them go home after there tour is over.Quit wasting money Upper Management.Don't raise prices on first class stamps instead raise it on the bulk mailers and the discounts they give these big companies.Quit charging more to the average joe who will keep going to e-mail and we will be put out of business because of these idiotic decisions by upper management in D.C.
It's not the crafts fault that were in the bind it's the clowns in upper management in d.c that waste money and management inthe plants that call overtime when it's not needed.I agree that if they quit wasting money on mystery shopper program,standup talks which is the same crap we have heard over and over.Why do they stop the mail from moving for 10 to 30 minutes when all the mail could of been moving and then they turn around and call overtime.Why did they waste so much money sponsoring Lance Armstrong.Why don't they give people that want overtime to them and people that don't let them go home after there tour is over.Quit wasting money Upper Management.Don't raise prices on first class stamps instead raise it on the bulk mailers and the discounts they give these big companies.Quit charging more to the average joe who will keep going to e-mail and we will be put out of business because of these idiotic decisions by upper management in D.C.
This is simply the run-up to contract talks folks. After the last extension was signed the post office "suddenly" found BILLIONS in dollrs and declared no rate hike would be needed for as many as six years. Really? Were they wrong then or now? Contract time guys = poor mouth time. Don't believe it!
as usual the po is now crying poverty.what a load of crap! screw them
#1 reason for destruction of morale and fiscal competency..FORCED OVERTIME WHEN THERE IS NO WORK..HOLIDAY DRAFTING ONLY TO BE SENT HOME AFTER A FEW HOURS..WHY........ NO WORK!!!!!!!NEXT TIME THE POSTAL SERVICE CRIES ABOUT THEIR BUDGET..THEY NEED TO REALIZE THEY ARE PISSING AWAY MILLIONS ON THIS MORALE DESTROYING PRACTICE.
Stop blaming the president and blame yourselves. Most Americans use email instead of mailing letters and we also pay our bills online. USPS has been hit hard because of this and now they can't afford to pay their federal employees. You can't fire them. So, to compensate for what we have done to them they are raising the price of stamps even higher. It's when the government decides to find away to charge you to send email you should start to complain.
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