USPS Proposed Rate Increase for 2011    Back to previous page  |  Back to Resources  |  Back to NJPA Home Page

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CONTROL POSTAL COSTS FIRST

The postage rate increases proposed by the U.S. Postal Service are a bad idea at bad time for newspapers, for most other businesses, and for the public.

The National Newspaper Association has joined the fight against the rate request filed July 6 with the Postal Regulatory Commission (PRC). The proposed increases include a 2-cent hike for first-class stamps but much more serious increases of 8 percent for newspapers and magazines.

The increases would also affect nonprofit mailers, such as churches, charities and community organizations.

The new rates will start Jan. 2, 2011, unless the PRC stops them.

In 2006, a price cap took effect that was supposed to hold all future postage rates to the rate of inflation. That is at less than 1 percent currently. USPS wants to increase its rates by an average of 5 percent. Allowing this would destroy the inflation cap rule.

The USPS blames its problems on the recession, even though mail volume has fallen since 2007, before the recession occurred. It also lists competition from the Internet as a reason for its current financial woes. Yet it wants to solve its problems by charging more, which opponents see as a death spiral for our national mail system.

Postal losses have been caused in part by Congressional mandates requiring $5.5 billion a year for 10 years prepaid into a retiree health benefit fund, something no other federal agency must do. They also stem from USPS’s unwillingness to address its high labor costs, which drive up expenses despite its other cost-cutting moves.

Newspapers and most other local employers have had to cut wages, benefits and hours during this recession. These are harsh and painful measures. But the Postal Service has had no layoffs. It has passed along wage increases during the recession.

We think it, too, should get serious about controlling its costs.

Our newspaper has joined the Affordable Mail Alliance (visit www.affordablemailalliance.org), a broad-based coalition of mailing industries representing over seven million jobs, in this fight.

While Congress has no immediate role in the rate case, our Congressional delegation should be aware of your opposition, as citizens and voters, both to this price increase and to eliminating Saturday delivery, where they are the decision makers.

If you agree, you may contact Rep. __________ at www.house.org, and Sens. __________  and __________  at www.senate.org. Also, the PRC wants to hear from you. Find it at www.prc.gov.