Distribution Directions 21 USPS Loss, New Postal Rate Delays, Uncertain Future, Union Negotiations

The U.S. Postal Service said its loss widened to $8.5 billion in the year ended Sept. 30, exceeding its forecast, as the volume of mail declined. Revenue fell 1.5 percent to $67.1 billion for the year and mail volume dropped 3.5 percent, according to a presentation to the board today at a meeting in Washington. The loss in the previous fiscal year was $3.8 billion, the service said.

Source: Bloomberg Businessweek

USPS's Action Delays Announcement of New Postal Rates

Because the Postal Service is seeking a ruling on how to calculate its rate cap, mailers will probably have to wait a few weeks before learning what rate increases are in store for next year. USPS asked the Postal Regulatory Commission to determine “the amount of unused rate adjustment authority when rate adjustments are more than 12 months apart.” The issue is especially murky because the PRC’s rules for determining the inflation-based price cap on most postal rates (including First Class, Standard, and Periodicals) did not anticipate periods of deflation, as occurred in late 2008. “If amendment to the Commission’s rules is necessary to give effect to the Commission’s determination, then the Postal Service asks that the Commission take such action,” the USPS petitionsaid. Assuming the Postal Service will await the PRC’s decision before issuing new rates for the “market-dominant” classes, the petition probably puts off any rate announcement for a couple of weeks – or longer if the PRC decides to hold a hearing or to entertain legal briefs. A rule change would probably require even more time. The PRC has indicated it is sympathetic to the Postal Service’s financial plight, so it might expedite the decision. But it is also trying to complete an advisory ruling this month on the complex and contentious five-day delivery issue.

Source: Dead Tree Edition

Postal Service Faces Uncertain Future

The Republican takeover of the House has left the future of the U.S. Postal Service up in the air as the agency faces continued concerns over cutting jobs and meeting obligations to its retiree health and pension funds. "It's highly uncertain as to how much [the next] Congress will accomplish," said Bruce Moyer, legislative counsel at the National Association of Postal Supervisors. "At the same time, on postal issues, the urgency of financial problems and the need to restructure the health and pension responsibilities could provide a significant incentive to getting a big fix done." Rep. Darrell Issa, R-Calif., who has stepped up to chair the House Oversight and Government Reform Committee, has signaled that postal reform will be among the issues on his agenda. "There are too many postal workers, too many distribution centers, too many post offices and a reluctance to make those changes," he told reporters last week. Issa also said USPS has too many supervisors and a total of 200,000 unnecessary positions. Issa spokesman Kurt Bardella declined to provide more detail about which provisions might be included in postal reform legislation.

Source: Government Executive

Union Negotiations are Down to the Wire

Members of the American Postal Workers Union (APWU) Rank and File Bargaining Advisory Committee are scheduled to arrive in Washington, DC next week to be on hand in the event of late-breaking developments at the negotiating table. With the current Collective Bargaining Agreement set to expire Nov. 20, union leaders remain optimistic about the possibility that an agreement can be reached. “Final bargaining will be challenging,” said APWU President Cliff Guffey, “but the union is determined to negotiate a contract that benefits both the members of the APWU and the Postal Service.” Union members can receive up-to-the-minute alerts by e-mail or text message.

Source: APWU

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