Groups Nix Postal Delivery Cutback Idea

Posted on by Chief Marketer Staff

Mailer reaction to Postmaster General Jack Potter’s suggestion that the U.S. Postal Service cut a delivery day to save money ranged from understandable displeasure to downright hostility.

On Wednesday, Potter asked the Subcommittee on Federal Financial Management Federal Services and International to consider “temporarily” reducing mail delivery from six to five days a week and for legislative relief from the U.S. Postal Service’s nearly $5.8 billion yearly healthcare benefit obligations (Direct Newsline. Jan. 29).

“There ain’t no way in hell he’s gonna get five-day delivery,” said Gene Del Polito, president of the Association for Postal Commerce. “I think the best he’s gonna get is two-year relief on the health benefit payments.”

Overall, Del Polito thought Potter put on a bad performance before the Senate panel.

He noted that at one point, Senator Susan Collins, (R-ME) –one of the largest proponents of postal reform–asked Potter if he had any plans to turn around the fortunes of the USPS and Potter reportedly had none.

In addition, Del Polito didn’t think the Senate panel should just stop its investigation with the Postmaster General.

“The next thing they ought to do is call in the Postal governors and ask them why they let this happen,” Del Polito said.

“We are pleased that the postal service is looking at everything to try and cut costs, try and keep itself from a financial collapse,” said Jerry Cerasale, senior vice president of government affairs at the Direct Marketing Association. “We direct marketers need the postal service and we need it to be financially viable.

“The thing that raised great concern for us is that people are just going to leave the postal service and never come back,” he added.

On top of that, Cerasale pointed out that cutting a day’s mail service might cause a such a large volume drop as to make any cost savings meaningless.

Tony Conway, executive director of the Alliance of Nonprofit Mailers observed that Sen. Tom Coburn (R-OK) questioned the viability of the USPS’s business model and suggested that the USPS needs to come up with a new one—despite the 11-year battle to come up with the 2006 Postal Accountability and Enhancement Act.

For that reason, Conway did not think postal issues were going to be on the top of Congress’s agenda—especially with all the other serious economic issues facing the country now.

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