THERE’S BEEN a lot of grousing going on lately about postal matters, much of it for good reason.
No one is particularly delighted with the rate increases proposed by the U.S. Postal Service; advertising mail service has dropped a notch or two; and, with one rate case not yet over, postal officials already are talking about putting another on the drawing board.
While postal officials have tried to buoy mailers’ confidence with news that mail automation is cutting costs faster than ever, mailers are smart enough to know that rising labor costs are eating up automation-related savings as soon as they’re realized.
The USPS is sick. Senior postal executives privately say the decline in first class mail volume predicted to begin in 2003 has already started. While advertising mail growth remains impressive, nobody wants to bet that with rising postal rates and increased access to cost-efficient electronic alternatives, new mail volume and revenue can be taken for granted.
The postal service can help itself in one of three ways: by lowering its labor costs; raising rates; or generating volume by offering new services.
Lower labor costs? Mailers shouldn’t hold their breath. The hefty increase in the city carrier payroll resulting from the last round of binding arbitration bodes ill for the USPS. It’s unlikely any of the other postal unions or management associations will mitigate their demands for “more and more” despite signs of an impending postal fiscal crisis.
The idea of raising rates, while apparently being contemplated by postal managers, should be rejected outright by the Board of Governors. In fact, it’s time for the nation to see the governors exercise some measure of leadership in helping Congress diagnose and remedy the USPS’ ills.
The only real option postal management has is to develop innovative business communications services. The question is, when will the USPS finally get off its duff and start talking with customers about their changing postal needs?
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