WASHINGTON, D.C. – On Thursday, November 5, 2009 at 10:00am in room 2154 of the Rayburn House Office Building, the Subcommittee on Federal Workforce, Postal Service, and the District of Columbia will hold a hearing entitled, “More than Stamps: Adapting the Postal Service to a Changing World.”

The purpose of the hearing is to examine revenue-generation initiatives recently undertaken by the Postal Service in order to further address the agency’s ongoing financial challenges. In addition, the hearing is also expected to discuss existing barriers to the Postal Service’s ability to innovate its operations through the introduction of new products and services.

As one means of addressing its unprecedented fiscal challenges, the Postal Service has undertaken a series of revenue-generation activities and begun to consider additional innovative services and product offerings. Notably, since June of 2008, the Postal Service has begun to focus its attention on the diversification of its Mailing and Shipping Services, including the pursuit of an integrated business model based on private sector best practices. In addition, the Postal Service recently developed and implemented a Standard Mail Volume Incentive Program, providing eligible mailers with a 30% rebate on certain Standard Mail letters and flats volume during the summer of 2009. Furthermore, the Postal Service has begun to explore the viability of pursuing several new sources of revenue, ranging from the sale of flat rate priority shipping boxes to the implementation of banking, telecommunications, and insurance services in postal retail facilities.

“While the Postal Service, a self-funded government entity, has already implemented a series of cost-cutting efforts in response to its deteriorating financial condition, the current situation also mandates that the agency take significant and innovative steps designed to enhance its products and services and generate revenue,” said Chairman Stephen F. Lynch. “Meaningful oversight of these activities will serve to better ensure that the Postal Service is able to address its financial shortfalls by growing the value of the mail and by generating greater revenue. These actions will in turn minimize the impact of cost-cutting measures on our hardworking postal employees, mailers, postal operations, and the agency’s future viability.”

Witnesses’ testimonies, the Chairman’s opening statement, and a 10:00 a.m. live broadcast of the hearing can be found on the Subcommittee’s website, www.federalworkforce.oversight.house.gov

WASHINGTON, July 15 — Rep. Chris Smith, R-N.J. (4th CD), issued the following news release:

Congressman Chris Smith today blasted the U.S. Postal Service (USPS) ill-conceived plan announced Monday that it intends to close the Freehold Downtown Station in the borough that serves over 25,000 people.

“The data is lacking and the timing suspect,” said Smith, who met with USPS officials in March. “It directly contradicts what they told a group of local leaders in a meeting we co-hosted in borough hall in March. Postal officials specifically promised that no decision would be made before they answered some basic inquiries about the costs of closure, and until they conducted a second meeting with community officials to discuss those costs. Those promises are being broken.”

Smith fired off a letter to the regional head of the USPS in Pittsburgh, Vice President of Operations Megan Brennan, requesting that she step in.

“The USPS needs to make good on its word and put off a final decision until it fulfills the commitment it made to the community,” Smith said.

USPS South Jersey District Manager Joe Diglio confirmed Monday that he plans to steer postal customers to the heavily used Freehold Township Post Office on County Road 537, which is 2.4 miles away to the west in the Raintree Towne Center. Residents from the eastern areas of Freehold Township would have an even longer drive. That center is extremely congested, with little parking available in a narrow, bottleneck configuration.

Borough Mayor Michael Wilson, speaking on behalf of the Freehold Governing Body, said he was appalled with the announced closure of the Freehold Downtown Post Office.

“This announcement lacks foresight and understanding of the greater Freehold area,” Wilson said. “It had been clearly conveyed to the appropriate postal authorities that Freehold Borough, the county seat, serves as the focal point of commerce, law, government, and social services for the entire County of Monmouth. Moreover, Freehold Borough has a significantly large amount of pedestrian traffic. I demand that the Post Office reconsider this action. The Freehold Postal Facility consists of nothing more than a trailer and is efficiently managed. I am unaware of any county seat in the State of New Jersey that does not have a post office!

“The news of the closure was solemn enough,” Wilson continued. “However, the method used to finalize the closure was equally bad. When we first met in March, there was a promise by postal officials for future meetings and dialogue on the planned consolidation order. Unfortunately, there were no more meetings, no telephone calls, no e-mails, and unanswered requests for meetings and updates. Their lack of responsiveness and cooperation clearly points to a complete abuse toward the citizens who avail themselves of this facility. They even lacked the common courtesy of advanced notice to Borough officials of the closure. I certainly appeal to the postal officials to reconsider this potentially disastrous decision.”

Freehold Township Mayor Anthony J. Ammiano, speaking on behalf of the Township Committee, expressed shock and anger over notification of the closing of Borough post office.

“At a March 2009 meeting, we were told no decision would be made until further discussions and meetings were held on the issue with representatives from the State, County, Freehold Borough, Freehold Center Partnership and the Township of Freehold,” Ammiano said. “This bad decision not only impacts the residents of Freehold Borough but also the 15,000 Freehold Township residents that live on the east side of the Township. This closing will add an additional 25,000 customers to the Raintree Postal facility. This plan, which was obviously based on economics, is bad for Freehold Borough and the residents of Freehold Township.”

The 800-square-foot Freehold Downtown Station facility has over 400 rented P.O. boxes, and has been open for nearly eight years on land provided free of charge by the county. It has a spacious parking lot, but is utilized by significant pedestrian traffic from the nearby county administration offices, the Superior Court complex and municipal offices, plus the businesses and offices along Main Street in a two-square mile town which has over 11,000 residents. Thousands of more residents of the eastern side of Freehold Township would have an even longer drive.

The proposal to close the Freehold Downtown Station and shifting its business to Freehold Township is a mistake, Smith said. It makes borough residents and employees from surrounding offices who now walk to the station drive a nearly five-mile trip to check their P.O. boxes or purchase stamps or services. The proposal puts a lot of cars on the road and sends them to an overcrowded, congested facility.

Smith noted that Freeholders Barbara McMorrow and Lillian Burry, State Sen. Jennifer Beck and Assembly Members Declan O’ Scanlon and Caroline Casagrande have also expressed concern about the proposal to close the Freehold Downtown Station.

He noted that in all of the 21 counties in New Jersey the town which hosts the county government has its own postal facility, some more than one. Additionally, more than one-third of those are in towns smaller than Freehold Borough, he said.

“Monmouth County is the fourth most populated county in the state, and Freehold Borough as its seat of government should have its own postal facility,” Smith said. “I think the postal service will lose a lot of customers if they follow through with this misguided proposal.”

City Calls On California To Give Citizens Choice Over Junk Mail

SAN FRANCISCO, March 31 — The San Francisco Board of Supervisors today passed a resolution calling on California to create a Do Not Mail Registry giving its citizens the choice to stop receiving unwanted junk mail.

Though non-binding, the resolution represents the first time American lawmakers have withstood pressure from the direct mail industry and the U.S. Postal Service to side with the majority of Americans.

Sponsored by Supervisor Ross Mirkarimi, the board approved the resolution by a 9-2 vote.

“Until now, junk mailers have stifled all efforts to give Americans what they want: an enforceable, comprehensive solution to junk mail’s waste and annoyance” said ForestEthics Executive Director Todd Paglia. “San Francisco is the first city in the United States to take political action against junk
mail, marking the beginning of a long-awaited government intervention to protect citizens from relentless and predatory junk mailers.”

Bills calling for Do Not Mail Registries have failed in more than 20 states, despite widespread frustration with junk mail. A 2007 Zogby poll revealed that 89% of Americans support the creation of a national registry.

“Reducing junk mail is in keeping with our nation’s efforts to reduce our carbon footprint and lead more sustainable lifestyles,” said Supervisor Ross Mirkarimi, upon passage of his Do Not Mail Resolution. “Just as Do Not Call overcame industry opposition to become the most popular consumer rights bill in history, I hope that this resolution will empower our representatives on the state and federal level to represent their constituents on this issue.”

Supervisor Mirkarimi has a record of trailblazing leadership on a variety of issues and policies, including the nation’s first municipal ban on plastic bags, and commuter benefits requirements for San Francisco businesses.

More than 93,000 Americans have signed ForestEthics’ petition at donotmail.org calling for the creation of a national Do Not Mail Registry.

Every year 100 million trees are logged to produce the 100 billion pieces of junk mail Americans receive. Junk mail’s production generates the carbon emissions of over 9 million cars. U.S. junk mail accounts for 30% of all the mail delivered in the world, though 44% of it goes to landfills unopened.

Visit donotmail.org for more information.

SOURCE ForestEthics

William Craven of ForestEthics, +1-415-407-3426

WASHINGTON, D.C. – On Wednesday, March 25, 2009, at 10:00 a.m. in room 2154 of the Rayburn House Office Building, the Subcommittee on Federal Workforce, Postal Service and the District of Columbia will hold a hearing entitled, “Restoring the Financial Stability of the U.S. Postal Service: What Needs to be Done?”

The Subcommittee will examine how the nationwide economic downturn, coupled with technological trends, has produced declining volumes and revenues for the United States Postal Service.

“With the Postal Service facing budget shortfalls the Subcommittee will consider a number of options to restore financial stability, and examine ways for the Postal Service to continue to operate without cutting services,” Chairman Stephen F. Lynch said.

The Postal Service’s recent decision to close six of its 80 district offices, eliminate positions across the country and offer another early retirement opportunity makes the Subcommittee’s hearing very timely.

The hearing aims to generate effective short and long term strategies to reduce costs and improve efficiency at the Postal Service. In addition, the Subcommittee will question the Board of Governors on Postal executives’ compensation packages.

“Given the ongoing financial losses at the Postal Service, there has been a considerable backlash among postal customers and current and former employees regarding the Postal executives’ compensation packages, including that of Postmaster General Potter. Members of Congress have been hearing from our constituents and we intend to look into this matter at the hearing and ascertain how those pay levels were determined and how to bring them in line with the current reality,” added Chairman Lynch.

Witnesses’ testimonies, the Chairman’s opening statement and a 10 a.m. live broadcast of the hearing can be found on the Subcommittee’s website, federalworkforce.oversight.house.gov

Press release:

U.S. Senator Olympia J. Snowe (R-Maine), Ranking Member of the Senate Committee on Small Business and Entrepreneurship, today sent a letter to John E. Potter, the Postmaster General of the United States, urging him to consider the impact on small businesses of reducing the United States Postal Service’s (USPS) delivery week from six days to five. Snowe cited the potential negative consequences such an action could have on America’s roughly 27.2 million small businesses.

“America’s small businesses depend on reliable and consistent service from the USPS, and they could suffer significant setbacks by a shortened mail delivery week, such as lost sales, order backlogs, and job cuts,” said Senator Snowe. “While I understand the Postmaster General’s desire to reduce costs, it is imperative that his actions not have a detrimental effect on consumer spending or the small businesses that make up the backbone of our economy.”

Postmaster General Potter announced the possibility of shortening the USPS’s delivery week in late January, citing his agency’s potential $6 billion deficit this fiscal year and the difficult economic climate. The United States Postal Service, which is the nation’s second-largest employer, is the only mailing service that delivers to every address in the country.

The text of the letter is below:

Mr. John E. Potter
Postmaster General and Chief Executive Officer
United States Postal Service

Dear Mr. Potter:

In light of your recent announcement that you are considering cutting postal delivery by one day per week, I am writing to request that you consider the potential harmful impact this action could have on America’s 27.2 million small businesses.

A six-day delivery week is essential to ensuring that our nation’s small businesses are able to reach their customers in an appropriate and well-timed manner. According to the United States Postal Service’s (USPS) website, on average the USPS delivers to 9 million businesses each day your trucks are operating. As Ranking Member of the U.S. Senate Committee on Small Business and Entrepreneurship, I am concerned that reducing your delivery week by one day may have devastating consequences for mail-order and internet-based businesses, newspapers, and the millions of small companies that utilize the USPS for timely mail delivery.

In my home state of Maine, thousands of businesses – large and small – depend on reliable and consistent service from the USPS. From retail clothing and outdoor specialist L.L. Bean to the dozens of Maine fishermen and lobstermen who ship fresh seafood across the world – and companies in between – Maine businesses simply must have access to a postal service that can deliver on a regular basis. These firms could all suffer significant setbacks by a shortened mail delivery week, from lost sales, to order backlogs, to job cuts.

While I understand your desire to slash costs and your overall concern given the tremendous economic crisis our country is facing, it is imperative that your actions not have a detrimental effect on consumer spending or the small businesses that make up the backbone of our economy. I hope that you will keep me informed of your findings as you weigh the consequences a shortened mail week would have on our country’s small firms.

From the House Subcommittee on Federal Workforce, Postal Service and the District of Columbia:

H.R. 626 the “Federal Employees Paid Parental Leave Act of 2009”/“Restoring the Financial Stability of the U.S. Postal Service: What Needs to be Done?”

The Subcommittee on Federal Workforce, Postal Service and the District of Columbia will hold a business meeting on Wednesday, March 25, 2009 at 9:30 a.m. in room 2154 of the Rayburn House Office Building, to markup H.R. 626 the “Federal Employees Paid Parental Leave Act of 2009.”

Immediately following the business meeting, the subcommittee will hold a hearing entitled, “Restoring the Financial Stability of the U.S. Postal Service: What Needs to be Done?”

The hearing will examine the financial stability of the USPS and discuss the short and long term strategies to reduce costs and improve efficiency.

For further information regarding the hearing, please contact the Subcommittee Clerk/Press Secretary, Marcus A. Williams, at ext – 65845.

WITNESS LIST

PANEL I

Mr. John E. Potter
Postmaster General & CEO, United States Postal Service

PANEL II

Ms. Carolyn Gallagher
Chairman, Board of Governors

The Honorable Dan Blair
Chairman, Postal Rate Commission

PANEL III

Mr. David Williams
Inspector General, Office of Inspector General, United States Postal Service

Mr. Phillip Herr
Director, Physical Infrastructure Issues, United States Government Accountability Office

PANEL IV

Mr. Dale Goff
President, National Association of Postmaster of the U.S.

Mr. Charles Mapa
President, National League of Postmasters of the U.S.

Mr. Ted Keating,
President, National Association of Postal Supervisors

PANEL V

Mr. William Burrus
President, American Postal Workers Union, AFL-CIO

Mr. William Young
President, National Association of Letter Carriers

Mr. John Hegarty
President, National Postal Mail Handlers Union

Mr. Don Cantriel
President, National Rural Letter Carriers Association

Press release:

The City and residents have long expressed significant concerns regarding the Postal Service’s plan to build a roughly 350,000-square-foot regional mail distribution center near homes, a religious facility, teen center, preschool, proposed affordable senior housing development and other vulnerable uses.

Citing the economy’s impact on the U.S. Postal Service’s finances, the Postal Service told the City it will not move ahead with plans to build a massive mail processing center in town.

In a Feb. 27 letter addressed to Mayor Donald Garcia, the Postal Service said that a nationwide freeze on capital spending has been instituted, nixing its plans ‘to proceed with the postal facility in Aliso Viejo or issue the Record of Decision on the Environmental Impact Statement at this time.’

Reports that the Postal Service is facing massive deficits that could force it to cut one day of mail delivery had City officials hopeful the Postal Service would scrap its plans to build a much-contested massive-mail processing center in town. The City and residents have long vehemently expressed concerns regarding the Postal Service’s plan to build a roughly 350,000-square-foot regional mail distribution center near homes, a religious facility, teen center, preschool, proposed affordable senior housing development and other vulnerable uses between 2A and 6 Liberty.

On Monday, city officials were elated but still cautious and reluctant about the Postal Service’s decision to not move forward. During the city’s drawn-out battle to stop the USPS from moving forward with its plans, city officials were told certain things by Postal Service staff that turned out to be false.

‘We were cautiously optimistic when we heard that the Postmaster General was calling for a suspension of capital projects due to the economic disaster the Postal Service found itself in, as it reported several billion dollars of losses over the past year alone,’ said Council Member Carmen Cave. ‘However, we were soon told that the Aliso Viejo project was ‘critical to the operations’ of the Postal Service. This announcement just validates our perception based upon our experience with the Postal Service and the way they have not been totally upfront with city staff or the people of Aliso Viejo.’

National Association of Postal Supervisors
Legislative and Regulatory Update – September 18, 2008

In this Issue:

* NAPS Celebrates Its Centennial at Successful Convention in Louisville
* PMG Potter Warns of “Perfect Economic Storm”; USPS May Lose $3 Billion by Year’s End
* GAO Says Pay for Performance Should Emphasize Delivery Indicators

NAPS Celebrates Its Centennial at Successful Convention in Louisville

The National Association of Postal Supervisors held a successful national convention in Louisville, Kentucky last week, attended by nearly 1,500 NAPS members, celebrating the 100th anniversary of the association and addressing a variety of business issues.

Rep. John Yarmuth (D-KY), whose Congressional district includes the Louisville area, congratulated NAPS convention delegates at the NAPS 100th anniversary banquet and inserted his congratulatory remarks in the Congressional Record.

With the excitement of the 2008 Congressional elections building, NAPS delegates contributed nearly $56,000 to the Supervisors’ Political Action Committee, one of the highest totals ever achieved at a NAPS convention. So far this year, NAPS has contributed over $100,000 to 90 House and Senate candidates who support NAPS and a strong postal system. A big THANK YOU to all who contributed to SPAC.

Results of NAPS elections for national, regional and area officers are here. Other daily convention bulletins and other convention information are here.

PMG Potter Warns of “Perfect Economic Storm”; USPS May Lose $3 Billion by Year’s End

Postmaster General Jack Potter, in his address at the NAPS convention last week, reported that the Postal Service will lose more than $2 billion by the approaching end of the USPS fiscal year. “We are struggling,” Potter said, pointing to declining mail volume and a weakening economy. “We’re in a dynamic situation, with greater losses in volume than we’d expected.”

Potter’s remarks to NAPS were similar to those he delivered in a Public Customer Council broadcast yesterday, warning of a “perfect economic storm” that threatens to deteriorate mail volume further. Citing fluctuating oil prices, inflation in paper prices and strife in financial markets, Potter described the impact of economic conditions upon USPS as the most difficult since the 1960s, along with the impact of email and questions about mail’s environmental impact that have led to a volume decline of 9 billion pieces this year.

“But the economy will bounce back,” Potter predicted optimistically, “and we have to be ready to adapt,” Potter added.

The Postal Service reported a net loss of approximately $960 million in August, according to recent reports filed with the Postal Regulatory commission. While year-to-date revenue is slightly above the same period last year, revenue for August was about ten percent below August 2007 in spite of a 2.9% increase implemented in May.

Pointing to a “vigorous debate” going on right now at USPS headquarters on 2009 mail volume projections, Potter said that those numbers will influence craft staffing levels, and in turn supervisory staffing. He noted the possibility of movement to 4-day/ten-hour shifts, but continued to insist that USPS will not offer financial incentives coupled with VERAs. “We have to be prudent. In 1992, we paid 46,000 employees a half-year’s salary to go, then ended up rehiring 70,000,” Potter maintained.

More details on the Postal Service’s financial situation and possible reorganization will likely be released during next week’s meeting of the USPS Board of Governors.

GAO Says USPS Pay For Performance Should Emphasize Delivery Indicators

In a report last week to Congress, the Government Accountability Office recommended that the Postal Service incorporate delivery performance indicators in its pay for performance system.

Pay for performance determines the annual salary increase for approximately 72,000 EAS and PCES managers and supervisors, who do not receive the cost of living and “step” increases added to bargaining unit employee salaries.

GAO recommended that USPS add new delivery performance indicators to PFP, since existing delivery indicators, like EXFC, apply to less than one-fifth of mail volume.

GAO said, “As USPS implements requirements of the postal reform law for measuring delivery performance, it will have opportunities to incorporate new indicators into its PFP program, notably for timely delivery of Standard Mail (49 percent of mail volume in fiscal year 2007) and bulk First-Class Mail (25 percent of volume). Once new delivery performance measurement systems are fully implemented and mailers’ participation is sufficient to generate representative data, USPS will be able to incorporate new delivery performance indicators into its PFP program.” To read the report, click here.

Bruce Moyer
Legislative Counsel to NAPS

Press release:

Today, Congressman Chris Murphy (CT-5) released a letter he sent to Frank Marshall, Acting District Manager for the United States Postal Service to get answers for Meriden residents about how the Postal Service is going to resolve the mail delivery delays in the city caused by the recent elimination of eight routes.

“Individuals and businesses rely on the United States Postal Service; they expect to receive their bills, paychecks, and other important packages in a timely manner. The Postal Service’s sudden change in service begs not only explanation, but a solution,” said Murphy.

Murphy has received calls into his office about the situation. Many of those affected by the route changes are senior citizens, who are waiting until the late evening for their mail to arrive.

Minor adjustments to the routes have not remedied the delays. As a result, Murphy has asked the United States Postal Service detail how the routes are being improved to provide better customer service.

“I don’t think it’s too much to ask that the Postal Service deliver for their customers, the residents of Meriden, before they go to bed every night,” said Murphy.