Archive for December, 2010

Credit card mailings are up dramatically compared to last year

Chicago (December 20, 2010)-Credit card issuers are working harder than ever to retain existing customers and attract new ones. According to Mintel Comperemedia, a service that provides direct marketing competitive intelligence, credit card mailings are up dramatically from this time a year ago, and that increase is due in large part to credit card offers promoting rewards programs.

The numbers paint a clear picture with approximately 1.2 billion offers for new credit cards received by US consumers in Q3 2010, compared to just 391 million in Q3 2009. Issuers continue to focus on credit-worthy consumers, and as a result, eight in 10 offers are for rewards cards promoting points, miles or cash-back to consumers, up from six in 10 offers in 2008.

Consumers are doggedly persistent when it comes to comparing credit card offers, and will use the rewards program with the best cash-back rate or highest points return per dollar, says Andrew Davidson, senior vice president of Mintel Comperemedia. According to a Mintel Oxygen report on loyalty marketing, 24% of consumers actively compare credit card offers in order to compare reward programs. Competition is fierce, and contrary to popular myth, some consumers do actively compare reward offers they receive in the mail.

Consumers have become more frugal: saving more and spending less on their cards. In this environment, offers promoting cash back on purchases have become increasingly popular. Cash-back credit card offers accounted for 41% of all rewards offers in Q3 2010, compared to 28% a year ago. Furthermore, issuers are acknowledging consumers change in spending and are now focusing on rewards that offer better returns on everyday items. Forty-five percent of offers mentioned the word groceries somewhere in the mailing text in 2010, up from just 20% in 2008.

Creative reward strategies will win new customers, but there will always be the threat from the next great rewards innovation, adds Andrew Davidson. Therefore, issuers need to seek new ways to leverage rewards programs to seek loyal customers post acquisition.

Appeals Court rules against USPS move to block intervenors

The Court of Appeals for the DC Circuit today ruled against the US Postal Service’s attempt to block mailers groups and others from intervening in its appeal of the PRC decision in the exigent rate case. The decision limits the intervenors siding with the PRC to a single joint brief, not to exceed 8,750 words. The Mail Handlers Union, which sought to intervene on the side of the USPS, will also be permitted to file a brief. Other parties, including the National Association of Letter Carriers and Senator Susan Collins have already been permitted by the Court to participate as amici curiae.

APWU: Contract Negotiations to Continue During Holiday Week

APWU Web News Article 156-2010, Dec. 21, 2010

Contract negotiations with the Postal Service are ongoing and will continue during the week between Christmas and New Years, APWU President Cliff Guffey said on Dec. 21.

Following a bargaining session with Postmaster General Patrick R. Donahoe, Guffey said, “The union is working to safeguard the jobs of our members and to lessen the pain of excessing.” A moratorium on excessing outside of a craft or installation, which was announced on Dec. 15, remains in effect while bargaining continues.

“We are working to strengthen the Postal Service by restoring work that has been outsourced or assigned to managerial personnel,” the union president said. “Our members can perform those duties more efficiently and less expensively,” he noted.

The parties also are discussing wages, benefits, and issues related to workforce structure.

“We will hammer away until we reach a settlement – or it becomes clear that we cannot reach one,” Guffey said. “If we conclude that we will not be able to negotiate a contract, we are prepared for arbitration.”

Mediation, Arbitration

The contract was originally scheduled to expire Nov. 20, but the union and management extended the deadline. The 2006-2010 Collective Bargaining Agreement will remain in effect until a new agreement is reached through negotiation, mediation, or arbitration.

Under the terms of the Postal Reorganization Act of 1970, if the union and management fail to reach agreement on a successor contract and do not agree on an alternate procedure, the Federal Mediation and Conciliation Service (FMCS) appoints a mediator. If a settlement is not reached within 60 days of the expiration of the contract, both parties submit all outstanding issues to binding arbitration.

If arbitration becomes necessary, the APWU will appoint an arbitrator, as will the USPS. The two party-appointed arbitrators will work with a neutral arbitrator to ensure that each side’s interests are clearly understood.

“The APWU will continue our efforts to negotiate a contract that benefits postal workers and the Postal Service,” Guffey said. “I ask union members for their continued support as this process unfolds.”

The APWU will continue to provide frequent updates regarding the status of collective bargaining. For the latest developments, please visit www.apwu.org. Members are also encouraged to follow the union on Twitter and Facebook to receive up-to-the-minute alerts by e-mail or text message.

via Negotiations to Continue During Holiday Week.

USPS to Expand Simplified Addressing for Businesses

WASHINGTON, Dec. 21, 2010 /PRNewswire-USNewswire/ — In a move that is expected to help businesses grow — especially small businesses who currently don’t use the mail because they can’t afford it — and garner millions of dollars in new revenue for the U.S. Postal Service, the agency announced today that it is easing the rules on simplified addressing to allow businesses to begin using the format on city delivery routes.

Simplified addressing enables business mailers to use mail delivery route information, instead of names and exact addresses, to reach target customer groups in specific areas. It has long been an accepted addressing option on rural routes and for government mailings.

Effective Jan. 2, 2011, simplified addressing will be expanded for use on saturation flat-size mailpieces and irregular parcels delivered on city routes. (Saturation mail is mail that is delivered to every address within a geographic area, and flat-size mail includes large envelopes and fliers often used for advertising. Irregular parcels, such as rolls and tubes, are parcels that cannot be processed on automated equipment because of their unique shape.)

While the expansion of simplified addressing does not change existing prices or classification standards for Standard Mail flats, it can lower costs by reducing mail preparation time and eliminating the need to purchase address lists and on-press printing. (Standard Mail offers a lower price on postage in return for the commercial mailer doing extra preparation work, such as presorting the mailing.)

“Simplified addressing will help local small and midsize businesses as well as large businesses drive more traffic and attract new customers,” said Paul Vogel, president and chief marketing/sales officer. “This can help strengthen the U.S. economy as well as our organization, the U.S. Postal Service, which is doing everything it can to drive revenue growth.”

The simplified addressing option enables business mailers, in most instances, to conveniently address mailpieces to “Postal Customer” when complete coverage on any designated delivery route is intended.

“Simplified addressing will serve as the on-ramp for many small businesses trying to reach their audiences within a specific geographic range,” said Vogel. “It will allow them for the first time to take advantage of the most effective marketing channel there is — direct mail.”

Good question!

From Postcom:

Have you ever noticed that as long as national posts are fat and happy with a growing mail business, they’re more than content to remain state-run services? But as soon as the going gets tough and the mail business looks like it’s on the skids, everybody looks to privatize the post. If the concept of a universal mail service is no longer a viable or supportable concept, what makes anyone think some schlemiel would be interested in buying a dying post?

via PostCom: Postal News and Information from Around the World.

APWU issues clarification on NRP issues awaiting national arbitration

In a letter to APWU regional coordinators and national business agents, Director of Industrial Relations Mike Morris has clarified the types of local- and regional-level grievances regarding the National Reassessment Process (NRP) that should be held in abeyance pending the outcome of Step 4 disputes at the national level.

The issues involved are:

  • Whether seniority has to be applied in assigning employees who have been injured on duty but are partially recovered
  • Whether management’s obligation to locate a job for a partially recovered injured employee (whose recovery occurs more than one year from the date eligibility for compensation begins) extends beyond the employee’s local commuting area

  • Whether a violation of the National Agreement exists when an employee who hasn’t completed one year of continuous LWOP is placed on separation-disability after he/she accepts nonpostal employment under the Office of Workers’ Compensation Program (OWCP) Vocational Rehabilitation Program.

Read the complete letter.

DYMO Endicia to host webinars on new USPS offerings

PALO ALTO, Calif., Dec. 20, 2010 /PRNewswire/ — Several U.S. Postal Service® innovations – designed to improve the efficiency and expense of business shipping – go into effect Sunday, Jan. 2, 2011. DYMO Endicia, the leader in Postage Technologies with over $5 billion in postage printed and more than 25 years of experience in the postal industry, will host a series of free webinars designed to provide customers with specific details of the new Postal Service™ offerings and ways customers can leverage the new services to benefit business.

“The new U.S. Postal Service enhancements could give businesses significant cost savings and added value compared to other shipping carriers, especially when used in conjunction with DYMO Endicia’s solutions,” said Amine Khechfe, general manager, DYMO Endicia. “We look forward to sharing the good news and explaining the details during our free webinars.”

Among the U.S. Postal Service innovations, a few highlights that DYMO Endicia will discuss during the webinars include:

  • Reduced Minimum Volume Thresholds for Commercial Plus™ customers

    • Discounted pricing for Priority Mail® packages and Express Mail® at lower cumulative shipping and mailing volumes than previous years

    • New, lower volume threshold for discounted pricing on Priority Mail® letters and flats
  • Priority Mail Regional Rate Box™ package and pricing service for Commercial Base™ and Commercial Plus customers
    • Cost-effective, zone-based pricing regardless of weight (maximum weight limits apply)

    • Available in two sizes (each with front- and side-loading capability), holding up to 15 and 20 pounds, respectively
  • Critical Mail™ service for Commercial Plus customers
      o Offers fast, consistent, in-transit service for time sensitive documents such as event tickets, identification cards and high-value direct mail pieces
      o Includes free Delivery Confirmation™ service

To educate customers on all of the enhancements taking effect, and other ways the U.S. Postal Service® can help them save money and time on shipping, DYMO Endicia will host free, one-hour educational webinars on the following dates/times:

  • Tuesday, December 21, at noon EST
  • Wednesday, December 22, at 2:00 p.m. EST
  • Monday, December 27, at 6:00 p.m. EST
  • Wednesday, December 29, at 11:00 a.m. EST
  • Tuesday, January 4, at 4:00 p.m. EST

A full webinar schedule is available at www.endicia.com/support/webinars.

We’re back!

Our main web site, postalnews.com, was down for about 40 minutes this morning due to problems at our hosting site. If you ever run into problems connecting, try our backup site, postalnews.net- it always has an up to date mirror of postalnews.com, but is hosted independently. You can also check our status by visiting our facebook page at fb.postalnews.com, or www.facebook.com/postalnewsdotcom, or checking our twitter feed @postalnews.

Obama, Rolando meet

From the NALC:

Obama, Rolando meet: NALC President Fredric V. Rolando, along with AFL-CIO President Richard Trumka and about a dozen labor leaders in all, met with President Barack Obama Friday in the Roosevelt Room at the White House. They had a productive discussion about jobs and how to address the difficult times facing American workers. President Rolando had the opportunity to raise the issue of U.S. Postal Service finances and how to address the challenges facing the Postal Service and letter carriers.

via NALC | The National Association of Letter Carriers, AFL-CIO.

APWU Encourages Members to Use Department of Labor Forms for FMLA Leave Requests

From the APWU:

The APWU is encouraging members to use Department of Labor forms when requesting Family & Medical Leave, while the union pursues a dispute with the Postal Service over employees’ right to use APWU forms or other equivalent documentation.

In a Dec. 17, 2010, memo [PDF] to local, state, and national union officers, Mike Morris, director of Industrial Relations, wrote that the APWU continues to assert that use of Department of Labor DOL forms are optional. Under the Family & Medical Leave Act FMLA, medical certification provided in any format must be accepted, as long as it contains all of the information required under the law, he said.

Despite the APWU’s position, Morris said, the union is encouraging employees to use the DOL Forms WH-380E [PDF] and WH-380F [PDF] until such time as a national-level grievance [PDF] on the issue is resolved. The union filed a dispute on the matter, after management notified the APWU of its intent to require employees to use the DOL forms.

In the past, the union encouraged members to use forms offered by the APWU, because the DOL forms ask physicians to provide some information that is not required by FMLA regulations.

via Union Encourages Members to Use Department of Labor Forms for FMLA Leave Requests.