Insights – Government Executive: USPS Could Lose Its Relatively New Authority to Raise Rates Above Inflation Under a New Bill

Another interesting article for postal customers, mail service providers and casual industry observers.

Let’s be clear to recognize the combination of sound stewardship and politics which fuel the calls for Congressional legislation to re-examine the Postal Regulatory Commission’s model which defines the scope of future postal rate making.

The Ten-Year USPS’ Delivering For America Plan was revolutionary in its scope and truly disruptive since it re-shaped both delivery times and mail processing / delivery systems. Future mail and package demand changes were anticipated and prior failed business models were abandoned. The USPS embraced the challenge of merging digital technologies with physical mail while optimizing its footprint and costs.

Change is both scary and expensive.

Costs are mounting as the USPS re-invents itself and for the immediate short term, unpopular rate increases will be the norm. Service seems to have stabilized as performance meets over 90% of USPS target goals. Now the tough part begins where physical facility closures and processing systems’ relocations are revealed and executed. Yes, there will be a human capital cost as retirees’ jobs are not replaced and current employees’ jobs migrate to new locations. The USPS was transparent about this and pledged to abide by its union contracts and commitments.

Political intervention is not the answer. Restrictive legislation would serve to handcuff innovation and delay needed actions. Admittedly, Congressional calls to action sound good in an election cycle.

Our Country needs a viable, responsive Postal Service which is both relevant and able to serve its citizens under all circumstances. The recent contributions to our election process and COVID test kit responsiveness are good examples of how a vibrant postal system continues to binds Americans together.

Frank Lynn | Freeport Press – Director of Postal Affairs

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Lawmakers question the need for the authority, as well as Louis DeJoy’s plans to consolidate mail sorting operations away from post offices.

https://www.govexec.com/management/2022/09/usps-could-lose-its-relatively-new-authority-raise-rates-above-inflation-under-new-bill/376898/