October 2009’s number represents a 34% increase over the 134 million credit card offers sent during September 2009. In the face of tight credit markets, increasing government scrutiny, and high unemployment and consumer debt, card issuers have drastically reduced marketing direct mail efforts since the middle of last year.

Andrew Davidson, SVP of Mintel Comperemedia, comments:

“Credit card mail volume is still down significantly from a year ago, but October’s sharp increase is an excellent sign for the industry. With recent green shoots of economic recovery, card issuers feel more confident about the future. I anticipate that this winter will mark the start of a turnaround in credit card direct marketing that will be sustained through 2010. This could very well be the beginning of the end for credit card direct mail declines.”

Mintel Comperemedia reports that October’s month-to-month increase in credit card direct mail is the highest recorded since February 2004. Andrew Davidson adds that “this is significant because direct mail rebounded from the 2001 recession in early 2004. Then of course, we saw mail volume reach unprecedented peaks in 2005/2006.”

This past month, Chase and American Express sent the most credit card offers. Each issuer had its most active mail month this year, as Chase more than doubled mail volume from September 2009 and American Express sent nearly 40% more offers. US Bank and HSBC (October’s seventh and eighth top mailers, respectively) likewise had their greatest mail months of 2009 to date.

“Some credit card issuers seem to be holding back on direct mail in preparation for the next wave of CARD Act implementations. Once these issuers establish their marketing strategies, I expect they’ll return to the mailbox. This will help drive increases in credit card direct mail next year.”

Visit Mintel Comperemedia’s new blog for the latest direct marketing trend analysis: www.comperemedia.com/blog/

Unlike most federal agencies, America’s national mail system receives no tax subsidy for operating expenses and relies on the sale of postage, products and services to fund its operations. The Postal Service reported a loss of $3.8 billion at the end of its 2009 fiscal year in October.

“To shore up its finances, the Postal Service is looking at every aspect of its business to economize. Reducing over-capacity in retail and delivery operations is a smart business move. Every effort is being made to maintain and improve customer access to postal services,” said Steven J. Forte, senior vice president, Operations.

Today’s announcement updates a review process begun earlier this summer that initially examined about 3,300 stations and branches in urban and suburban areas across the country, focusing on facilities in relatively close proximity to one another. The process is to determine where consolidations might be feasible without compromising customer access to postal services.

With over 36,000 Post Offices, stations, branches, contract and community post offices, the Postal Service has the largest retail network in the United States. An additional 56,000 locations such as supermarkets, drug stores, and other retailers sell postage and selected postal services. Nearly 18,000 ATMs dispense sheets of stamps. But customers do not have to visit a physical building to purchase products and services; postage can be bought at usps.com and printed on personal computers.

As part of this process, the Postal Service has filed periodic updates with the Postal Regulatory Commission, identifying the retail stations and branches that remain under consideration. The filing does not represent a final decision on consolidation. To date, no facility-specific final decisions have been made as a result of this initiative.

New initiatives also are being undertaken to build revenue, including Flat Rate Priority Mail pricing. If it fits in the box, it ships for one low price regardless of U.S. destination or weight. Another recent revenue building initiative introduced greeting cards to 500 select Post Offices.

The Indictment alleges that between 2008 through August of 2009, Bourg rifled through the mail and stole controlled substances, trading cards, DVDs, and other items from mail letters, cards and packages. Complaints were made that several items had not reached their intended recipients. During their investigation, investigators observed Bourg take a package from the post office. A search warrant was executed on his home where investigators discovered additional packages and items which Bourg admitted to taking from the mail.

In the event of a conviction, the maximum potential penalties are 17 years’ imprisonment, a $250,000 fine, and supervised release for a period of up to 3 years.

The case is being prosecuted by Assistant United States Attorney Lettricea Jefferson-Webb, and it was investigated by the United States Postal Service, Office of the Inspector General, Veteran’s Administration Office of Inspector General and the Drug Enforcement Administration.

Bourg is scheduled to appear for arraignment before the United States Magistrate Judge on December 22, 2009, at 9:30 a.m., in Louisville, Kentucky.

Some of the Post Offices in the U.S. Postal Service’s Sierra Coastal District will be closed for retail services on Friday, Nov. 27. Regular mail delivery will be unaffected by this temporary change. However, in the cities and towns listed, there will be no outgoing mail collected from either the blue mail collection boxes or the Post Office lobbies and access to P.O. Boxes will be unavailable.

Notification of the adjusted hours is posted at each Post Office that will be closed or closing early, along with the location of the nearest access to Postal products and services. Customers may also call 1-800-ASK-USPS or visit www.usps.com for information about specific Post Offices.

Details of 2009 results include:

* Operating revenue of $68.1 billion, compared to $74.9 billion in 2008;
* Operating expenses of $71.8 billion, compared to $77.7 billion in 2008;
* Net loss of $ 3.8 billion, compared to $2.8 billion in 2008; and
* Total mail volume of 177.1 billion pieces, compared to 202.7 billion pieces in 2008, a decline of more than 25 billion pieces, or 12.7 percent.

“Our 2009 fiscal year proved to be one of the most challenging in the history of the Postal Service,” said Chief Financial Officer Joseph Corbett. “The deep economic recession, and to a lesser extent the ongoing migration of mail to electronic alternatives, significantly affected all mail products, creating a large imbalance between revenues and costs.”

Corbett said that USPS responded aggressively to unprecedented mail volume declines and the ongoing recession. “We undertook comprehensive cost-cutting measures across all areas of the organization,” he said. “Most notably, we reduced work hours by 115 million, or the equivalent of 65,000 full-time employees — a larger number than the entire workforce at more than 80 percent of Fortune 500 companies today.”

Several significant accruals in the year increased the 2009 net loss by $1.7 billion but did not affect current year cash flow:

* An increase in estimated Workers Compensation liability of $718 million, primarily to reflect lower interest rates;
* An increase in estimated deferred revenue recognition on prepaid postage of $756 million, primarily based on newly-available data on customer purchases and use of stamps; and
* Accrued retirement incentives of $197 million for 13,400 employees who applied for the incentive prior to Sept. 30, 2009.

In its report on the financial statements contained in the Postal Service’s 2009 report, independent auditor Ernst & Young issued an unqualified audit opinion, but emphasized that questions remain about the ability of the Postal Service to generate sufficient liquidity to make all of its payments, including the $5.5 billion retiree health benefits payment due on the last day of 2010. “There is significant uncertainty as to whether the United States Postal Service will have sufficient liquidity to make this payment on Sept. 30, 2010,” the opinion stated.

The Postal Service will file its 2010 Integrated Financial Plan later this week, outlining plans and goals for the coming year. While further revenue losses and mail volume declines are expected, Potter said USPS will continue to move aggressively to meet the challenges posed by the current economic downturn.

“We realize our customers are facing the same economic challenges,” said Potter. “That’s why we are not raising prices on First-Class Mail, Standard Mail and our other market-dominant products in 2010,” he said.

The 2010 plan, which estimates a revenue decline of $2.2 billion, a net loss of $7.8 billion, cost reductions of more than $3.5 billion and a reduction in mail volume of 11 billion pieces for the year, is based on the assumption that there will be no change in the number of delivery days per week, and no change in the current retiree health benefits payment schedule.

“We’re grateful to Congress and the Administration for the necessary 2009 adjustment to our retiree health payment,” said Postmaster General John Potter. “This was a welcome and much-needed change to assure that the Postal Service was able to meet all of its obligations at the end of the fiscal year and over the course of 2010.” Potter stated, however, that the Postal Service faces “a sobering reality” of the same problem in 2010 and every year in the near future. “As volume contracts and we struggle to match the costs of an expanding delivery network with revenues received, it’s clear that long-term success requires fundamental, legislative change,” he said.

Potter said that legislation must address “the impossible demands” of prefunding future retiree health benefits at current levels of more than $5 billion annually; the barriers to matching delivery frequency with declining mail volumes; and the ability to leverage the Postal Service’s logistics, distribution and retail networks to create new revenue streams.

“In 2010 we will engage our customer and business partner stakeholders, the Administration and Congress, and the American people in a dialogue to determine a more financially sustainable future,” said Potter. “The Postal Service remains a vital driver of the American economy and an integral part of every American community.”

Copies of the 2009 financial results are available on the Annual Reports page of the Postal Service website, usps.com, at: http://www.usps.com/financials/ar/welcome.htm#10k.

“Customer service and satisfaction are always our priorities,” said Postmaster General John Potter. “The Postal Service remains focused on its mission to provide universal, affordable service to all Americans.” Potter said he is pleased with the 94 percent rating — the highest in four years — and USPS will build on the achievement to reach even higher levels. Prior to the 94 percent rating, USPS received a 93 percent rating of “excellent, very good or good” for five consecutive quarters.

“We will continue to improve service,” Potter pledged. “In fact, we have implemented an even more demanding service measurement system that will allow us to see more easily where we need to focus improvement efforts,” he said.

USPS is implementing the new Customer Experience Measurement (CEM) program, effective with the start of fiscal year 2010, replacing the Customer Satisfaction Measurement program that has been in place since 1991.

CEM is designed to evaluate the total customer experience, from the buying process through service quality. Insights and information from the new measurement system will allow the Postal Service to pinpoint areas of improvement as well as better adjust to changing customer needs. The new system will allow USPS to collect and analyze data from customer surveys and other sources for a more detailed view of customer feedback.

“CEM will help the Postal Service better understand our customers’ perspective,” said Vice President and Consumer Advocate Delores Killette. “By measuring customers’ experiences across all contact points, the Postal Service will build stronger customer relationships and become a more customer-focused organization.”

Killette introduced the new system at today’s Board of Governors meeting, along with the fourth-quarter national performance scores. In addition to the 94 percent customer satisfaction rating, other highlights of on-time mail delivery scores are:

* 96 percent for Single-Piece First-Class Mail overnight delivery for the fourth consecutive quarter
* 95 percent for two-day delivery, up 1 percentage point over last quarter
* 94 percent for three-to-five-day delivery, up 1 percentage point over last quarter.

Other Board Matters

Also at today’s board meeting, Louis Giuliano was elected chairman and Thurgood Marshall, Jr., was elected vice chairman of the board. Giuliano previously served as vice chairman and was appointed a governor by President George W. Bush in 2004. He is former CEO and President of ITT Corp., where he was responsible for leading the creation of a strategic vision and an effective operating strategy for this Fortune 500 global-industrial company. Marshall, an attorney in Washington, DC, and former member of the Clinton Administration White House senior staff, was appointed a governor by President Bush in 2006.

In his opening remarks, Postmaster General Potter noted that this was the first open session board meeting since legislation passed that lowered the Postal Service’s 2009 payment to the Retiree Health Benefit Trust Fund by $4 billion. Potter said the Postal Service is grateful to Congress and the Administration for the welcome adjustment. “However, we must recognize that the Postal Service faces the same problem again this year and every year in the near future as volume contracts and we struggle to match the costs of an expanding delivery network with revenue received,” he said. “It is clear as we move into 2010 that long-term success will require fundamental, legislative change.”

The USPS Integrated Financial Plan for 2010 will be released next week, as will the Postal Service’s 2009 end-of-year financial results.

“It has been weeks and the hard-working employees at these post offices are still waiting for answers,” said Congressman Hodes. “The USPS should immediately present a plan to ensure that workers are immediately reimbursed for their lost wages, and that appropriate disciplinary action is taken. Those individuals responsible for cheating New Hampshire families out of hard earned wages must be held accountable.”

Earlier this year, Congressman Hodes wrote to the USPS Inspector General asking for an investigation into claims that management at the Milford Post Office, Manchester South Station, and Manchester West Station had manipulated time cards to cheat workers out of wages to which they were entitled. The investigation revealed that management at these stations and at the Somersworth and Salem post offices had in fact engaged in these practices and denied New Hampshire workers the wages they had earned.

The full text of the letter is below:

Dear Postmaster General Potter,

A United States Postal Service (”USPS”) Office of Investigator General (”OIG”) investigation revealed on October 15, 2009 that managers at 5 New Hampshire postal stations were manipulating time sheets in order to underpay workers. I request information on the USPS’s plan of action to respond to this OIG report, whether the USPS plans to reimburse workers, and what steps USPS is taking to ensure that this type of manipulation does not happen again.

In May of this year, I wrote to USPS Inspector General David Williams requesting that his office investigate claims that the United States Postal Service had altered letter carriers’ timesheets on an electronic time system for the last six years. His investigation subsequently revealed that management altered time entries which, according to a letter from Mr. Williams, “resulted in the removal of straight time, overtime night differential and penalty overtime causing employees to be underpaid.” These managers stole time from letter carriers at five New Hampshire postal stations, even as they worked on Christmas Eve.

The USPS must properly reimburse workers for the wages that were taken from them and hold the managers who engaged in these deceitful, unethical practices accountable for their actions. The postal workers in my district deserve answers, and they deserve to be reimbursed for the wages that they have earned. The USPS must put practices in place to make sure that electronic time system manipulation does not happen again, and that those individuals who cheated letter carriers out of hard-earned wages are held accountable. I request that you present a plan to accomplish these goals, and look forward to your reply.

Friday, Nov. 13 at 8:30 a.m.

1.Call to order and approval of minutes of previous meetings.

2.Remarks of the Chairman of the Board.

3.Remarks of the Postmaster General and CEO.

4.Committee reports.

5.Consideration of fiscal year 2009 10-K, financial statements and Postal Service annual report.

6.Consideration of fiscal year 2010 Integrated Financial Plan.

7.Consideration of fiscal year 2009 comprehensive statement and annual performance plan.

8.Quarterly report on service performance.

9.Tentative agenda for the Dec. 8, 2009, teleconference meeting.

10.Election of Chairman and Vice Chairman of the Board of Governors.

11.Adjourn.

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

Subject: Board Memo 132-09

Board Memo 132-09

Executive Board Members,

The resident officers met with Deputy Postmaster General Pat Donahoe on Wednesday, October 28, 2009, along with representatives from NAPUS and the LEAGUE of Postmasters concerning several issues that had been raised in prior meetings with the Postal Service.

The Postal Service announced to the management associations at a recent meeting that they were changing the weighted portion of the NPA for Core goals from the current 30% to 10% for all EAS employees. At the time that this change was first provided to us, we objected as this matter is part of our pay agreement and we were not consulted with as required by Title 39. We requested a meeting with DPMG Donohoe. As a result of our objections, the USPS withdrew this proposed change.

In developing the 2010 Core goals for NPA, the management associations all provided feedback on items that we believed should be changed in the NPA process. The Postal Service accepted some of the recommendations that were made by the management associations yet they rejected other proposals. We wanted to have an opportunity to discuss the reasons that some of our recommendations were not accepted and requested a meeting with DPMG Donahoe.

As a result of our session with DPMG Donahoe on October 28, 2009, we have scheduled an extended meeting for November 3, 2009 where we will discuss some of the NPA issues that we still have pending.

DPMG Donahoe briefed us on some of the current issues;

The USPS projects that the plan for volume for 2010 is 166 billion pieces. The first month of the fiscal year the volume did not meet the projections.

Nearly 20,000 employees took advantage of the incentive to leave with the cash award, approximately 17,500 clerks and 2,500 mailhandlers. Most of the clerks worked in Automation and 500 clerks were BMEU employees. 90% of the employees who took the offer were eligible to retire.

DPMG Donahoe advised us that the field was instructed to make sure that they recognized the employees who were leaving for their years’ of dedicated service. If the management organizations become aware of any area that is short-handed due to the departure of employees who took the incentive, let him know. The lowest response rates for individuals who could have opted for the incentive was in southern Michigan and in Florida .

DPMG Donahoe has advised the field to initiate action to fill critical positions in the field, starting with Postmaster positions and higher level EAS positions. The USPS will continue to pursue opportunities to AMP mail processing and consolidate delivery operations where space permits. DPMG Donahoe also advised that there will be a resolution to the ASP issues very soon and that the USPS will be discussing this with NAPS.

DPMG Donahoe advised all attendees that it is very difficult for the USPS to support offices remaining open where there is no customer base and that he will be discussing this matter with the Postmaster organizations separately.

DPMG Donohoe expressed satisfaction with the efforts that have been made in route adjustments with the NALC and the resultant reductions in workhours.

DPMG Donahoe advised the management organizations that he would work with us on EAS staffing to resolve some of the coverage issues that we have with the current SWC program. As far as the use of iSWC is concerned (in the Pacific Area0 iSWC will not be used for projecting staffing or to budget operations.

DPMG Donahoe stated that the focus for the year will be on NDC operations, office consolidations, Article 12 implementation for relocating craft employees.

The current FSS deployment has been plagued by software issues. The USPS will continue its’ plans to install equipment but the actual deployment from a use standpoint must be resolved by the contractors. DPMG Donahoe advised that the USPS is working with the contractors to resolve the bugs in the system and that the contractor has replaced all of the engineers who have been working to correct the bugs. DPMG Donahoe also advised us that there were no other major initiatives that were being planned for 2010.

DPMG Donahoe said that he expected that Postmasters in small officers would be able to submit schedules for their operations that would conform to an 8 hour work schedule in compliance with FLSA law.

The Stamp Distribution Network is planned to go from 65 centers around the country to just 6. The management organizations stressed that this will cause problems in providing the stamp stock necessary in the field. DPMG Donahoe said that something needs to be worked out to resolve these problems and that it may be necessary to adjust the offices accountability so that they can keep more product on hand for customers.