The Postalnews blog has reported that "Jerry D. Lane, the former USPS Vice President for the Capitol Metro Area, was found guilty on misdemeanor assault charges in Loudoun County, Virginia District Court on Thursday, and was fined $300."

WNEM has reported that "U.S. Postal Service employees in Saginaw plan to organize an informational picket on Thursday. The demonstration is aimed at informing the public of the benefits of keeping a six-day mail week. According to the Saginaw News, the chief steward for the postal worker's union said federal officials are considering moving all operations out of the city."

The Estonian Free Press has reported that "Estonian Minister of Economics Juhan Parts announced that the partial sale of state-owned Eesti Post will not take place happen before March 2011, when the national Elections for the Parliament are due to take place, Bloomberg reports. There is an absence of unity around the issue from the government according to Parts, who also supported the selling postponement to let the future administration take the decision."

From Online PR News: "Shippers searching for shipping options for are discovering Newgistics. Newgistics has a solid reputation for delivering industry leading results. Shippers' reputations ride on how they deliver. In shipping results are critical. For years Newgistics has supplied competitive shipping options for shippers. If you are looking for a shipping partner, Newgistics is the logical choice. Newgistics is known for quality shipping solutions that reflect well on the reputations of their shippers. For additional information retailers are invited to visit the company web site at http://www.newgistics.com."

From PR Newswire: "Americans hitting the road this Labor Day weekend should consider some advice from the U.S. Postal Service. According to the National Safety Council, nearly 5,900 postal employees have achieved a unique distinction most of us never approach in a lifetime — driving more than 1 million, accident-free miles. No other business comes close."

DMM Advisory: IMb™ Services Update. WEBINARS – MIGRATING TO IMb:  To date, mailers have deposited more than 50 billion mailpieces with Intelligent Mail^® barcodes (IMb). If you haven’t already come onboard, we’d like to remind you that beginning in May 2011, to be eligible for automation discounts on your letter-size and flat-size mailpieces, you’ll need to start using the IMb in place of the POSTNET™ barcode. In May 2011, the POSTNET barcode will be ineligible for automation prices and the IMb must be used to claim automation prices with either the Full-Service option or the Basic option.

The latest issue of Postal Technology International is now available online.

The Courier, Express, and Postal Observer has reported that "Based on what is happening in Great Britain, competition in the mail business in the United States could make it easier for advertisers that are hesitant to use mail or other forms of delivery of printed advertising to manage the process. Clearly having multiple delivery companies marketing services could help expand the market. The largest mailers will likely not need the services similar to those that TNT Post and Royal Mail are offering and continue to use the large printers to manage their needs."

August 30, 2010

The Associated Press has reported that "For a decade, West Africa's main connection to the Internet has been a single fiber-optic cable in the Atlantic, a tenuous and expensive link for one of the poorest areas of the planet. But this summer, a second cable snaked along the West African coastline, ending at Nigeria's commercial capital, Lagos. It has more than five times the capacity of the old one and is set to bring competition to a market where wholesale Internet access costs nearly 500 times as much as it does in the U.S. It's the first of a new wave of investment that the U.N.'s International Telecommunications Union says will vastly raise the bandwidth available in West Africa by mid-2012."

From Media-Newswire: "Ronald R. Bassak, and his construction company, Meccon, Inc. admitted in United States District Court today that he and his company paid a U.S. Postal Service contracting officer approximately $100,000 in bribes in order to secure contracts for his company. During the investigation, the contracting officer committed suicide at his Westerville home."

The U.S. Postal Service Office of Inspector General invites you to comment on this week’s “Pushing the Envelope” blog topic: (Postal Employees) Having Problems with Your Time and Attendance Records? The OIG Wants to Hear From You. The OIG’s Human Resources and Security Team is interested in hearing from Postal Service employees who might be experiencing problems with their time and attendance records. Take the OIG’s survey and share your comments here. The following reports also have been posted today on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/). If you have additional questions concerning a report, please contact Wally Olihovik at 703.248. 2201, or Agapi Doulaveris at 703.248.2286.

• City Delivery Efficiency Review – Bay-Valley District (Report Number DR-AR-10-007).
• Facility Optimization: Chicago District (Report Number DA-AR-10-009).
• Facility Optimization: New York District (Report Number DA-AR-10-010).
• Facility Optimization: Northern New Jersey District (Report Number DA-AR-10-008).

DM News has reported that "Young consumers may live their lives online, but they trust offline marketing pitches more than web-based ones, according to a survey. The poll also found privacy is a concern for all age groups. Thirty-six percent of US households and 38% of Canadians said mail information is more private than e-mail, compared to 29% of US respondents and 35% of Canadians in 2008. However, the study noted that only 25% of respondents are getting more postal mail now than a year ago, while 72% of US households and 66% of Canadians say they're getting more e-mail."

From the Courier, Express, and Postal Observer:

• The GDP numbers released last week were disappointing. Yet, the numbers for the Postal Service and advertising in general were not that bad. Why is that? It is simply that sales to domestic purchasers -- which include consumers, businesses and the government -- rose 4.3%. An an industry that depends on its ability to grow the sales of firms that sell products and services to consumers and business, having customers whose business is growing faster than the economy is good news. So why does the economy seem to be slowing down? The reason is four fold.
• This weekend, the publisher of Oxford English Dictionary announced that the next edition will be published in digital format only.

At the Postal Regulatory Commission:  September 01, 2010 - Notice: Public hearings in Docket C2009-1 are scheduled for Wednesday, September 1 and Thursday, September 2. Both hearings will begin at 9:30 a.m. Links to the audio will be posted here approximately 10 minutes prior to the broadcasts.

August 29, 2010

Veterans Today has asked: "President Obama: Why Are You Allowing Your Postmaster General to Run a Plantation?"

CBC has reported that "Staffing decisions by Canada Post have resulted in unacceptable delays in mail delivery, the union representing letter carriers in British Columbia says. Canada Post hasn't been backfilling employees who become ill or take leave, Ken Mooney of the Canadian Union of Postal Workers told CBC News. "The non-delivery has a ramification on the community, of course, because people depend on GST cheques and family allowance cheques and various other correspondence, and they depend on Canada Post for that service," Mooney said."

"USA Today, the nation's second largest newspaper, announced this week a major restructuring effort designed to address a drop in advertising and circulation and bring it up to speed in today's new world of smartphones and tablets." [EdNote: And the Postal Service is doing . . . . what?]

Zawya has noted that "The services of Empost, the national courier company, are now available at main post offices across the UAE."

From PR Web: "She was the only woman, as of 2010, who rose from a clerk in the Georgia Southern College Post Office to Deputy Postmaster General in the United States Postal Service. In an inspiring memoir, MS. DEPUTY POSTMASTER GENERAL, author Jackie A. Strange shares with readers her remarkable achievements and how trusted leadership, courage, and innovations impacted the postal service. Under physical and mental duress, she achieved unprecedented records and saved billions of dollars for the postal service—the largest non-military job in the world with 800,000 employees and a $32 billion (in 1983 dollars) budget—through innovative programs."

August 28, 2010

Reuters has reported that "Deutsche Post, the successor to the German federal postal service, will offer bounties for bugs researchers find in its E-Postbrief secure message service, the company announced this week. The firm, which also operates the DHL overnight delivery service, will kick off a contest in October after it pre-approves research teams that apply for what it's calling the Deutsche Post Security Cup. Each team will be seeded with ?3,000 ($3,800), but must use their own tools and agree to not touch any private data they come across during their work. The teams must also keep quiet about any vulnerabilities they find until December, when Deutsche Post will award prizes and reveal the bugs it's patched."

From the Federal Register: Postal Regulatory Commission   NOTICES New Postal Products , 53002–53003 [2010–21423] [TEXT]  [PDF] Product List Transfer , 53003–53004 [2010–21438] [TEXT]  [PDF]

Long-time newspaper postal advocate, Max Heath, wrote in the Georgetown News that "Members of the National Newspaper Association, which publish about 2,000 community newspapers across America, do the same. I serve as its long-time Postal Committee chairman. That’s why I want to respond on behalf of them and other mailing industries in Kentucky to the recent opinion piece printed in many state newspapers by Ellen Williams of Kentucky, member of the United States Postal Service Board of Governors. The United States Postal Service has decided to place an unnecessary burden on Kentucky’s families, workers and businesses by proposing a major price increase. Fortunately, Gov. Williams can help stop this, and that’s what citizens in Kentucky should be asking her to do, instead of rubber-stamping postal management decisions."

The Daily Camera has reported that "The U.S. Postal Inspection Service is offering a reward of $1,000 for information related to the recent destruction of mailboxes in Boulder. Police believe the mailboxes were damaged with homemade explosive devices. Read more: U.S. Postal Services offers reward for information about destroyed Boulder mailboxes."

Hellmail has reported that "Norway Post achieved earnings before non-recurring items and write-downs of NOK 511 million in the first half of 2010 - an increase of NOK 130 million compared to the same period last year, although addressed mail volume fell by 7.4 per cent. The improvement in earnings was achieved despite the half year being affected by declining volumes in the mail and logistics segments, a lower level of activity in the IT market and a strike in the transport sector."

August 27, 2010

DMM Advisory: IMb™ Services Update. New FAST Help Desk (August 30, 2010): As announced in the Facility Access and Shipment Tracking (FAST^®) 14.3.0 Release Notes (August 15, 2010), the Postal Service™ will launch the new FAST Help Desk effective Monday, August 30. The FAST Help Desk will be available to assist with application and operation-related issues by:

• Email at FAST@usps.gov.
• Telephone at 877-569-6614. The FAST Help Desk telephone number efficiently directs calls through a new IVR network to ensure prompt routing of customer inquiries.    

The FAST Help Desk hours of operation will be Monday through Friday, 7:00 a.m. to 7:00 p.m. CT. Telephone support will be available outside of these hours including weekends and holidays. If the Help Desk is unable to provide an immediate resolution, a Remedy Ticket will be activated and escalated to the appropriate postal functional entity. All FAST Remedy Tickets will follow the established Issue Resolution Process.  The FAST Welcome pages have been updated to reflect the new FAST Help Desk contact information.  

A copy of the Postal Service Customer Relations Department organizational chart has been posted on this site.

The Parcel Shippers Association (PSA) and the Direct Marketing Association (DMA) have asked the Commission to issue a Commission Information Request (“CIR”), seeking information necessary to fully understand the cost, revenue, market and other factual bases upon which the Postal Service’s proposed transfer of Standard Mail Fulfillment Parcels relies."

Press Release: "Announcing... a revolutionary digital publishing service that helps clients market and distribute print materials in easy-to-read digital editions via e-mail and the Internet using only a standard Web browser! Nxtbook Media — LLC helps publishers provide digital versions of their magazines, catalogs, travel and other collateral. If you want to lower your distribution costs, reach a wider audience and increase advertising revenues, Nxtbook Media will convert your printed magazine into an online magazine, also known as a digital magazine or e-magazine. We can also optimize print catalogs, travel and other collateral materials into digital versions."

Washington's Blog has noted that "U.S. Postal Service Starts Quoting SDR to Dollar Conversion Rates, and IMF Endorses Replacing Dollars with SDRs."

The Financial Times has reported that "A Kosovan plan to sell hundreds of millions of euros of state telecom assets has prompted warnings of legal repercussions from Serbia, setting off another skirmish in the former Yugoslavia’s most stubborn ethnic dispute. Kosovo’s ministry of finance and economy has called for pre-qualification bids by September 13 to buy large tranches of shares. The planned 75 per cent sell-off encompasses fixed-line, wireless and mobile communications subsidiaries, while the unreformed, inefficient postal service stays in state hands."

 
The latest issue of the PostCom Bulletin is available online. In this issue:

• Through newly released memos, the Washington Times has reported that the Postmaster General and top officials gave postal inspectors varying accounts about the decision to allow a top executive to retain his six-figure outside corporate jobs while working full time, earning more than $230,000 as a vice president of shipping, for the USPS.
• The Postal Service published its unaudited July results with the Postal Regulatory Commission. USPS lost $764 million in July 2010. This is brings the year-to-date loss to $6.0 billion.
• The Congressional Research Service has released its report - The U.S. Postal Service’s Financial Condition: Overview and Issues for Congress. The report provides an overview of USPS’ financial condition, recent legislation to alleviate the USPS’ financial challenges, and possible issues for the 111th Congress.
• According to the Courier, Express, and Postal Observer, “readers that are expecting an answer to the question in the title will be disappointed. The truth is I do not know. However, I do know that the most recent forecasts, or at least those contained in the exigent rate case are woefully out of date even though they are at worst 6 months old.”
• The Affordable Mail Alliance - a growing coalition of non-profits, Fortune 500 companies, small businesses, major trade associations, consumer groups, and citizens representing the vast majority of the mail sent in the United States - today announced the addition of its one thousandth member group.
• Marketers brace for paper cost increase. Digital advertising is being clobbered by traditional media. MTAC forms new workgroup. PRC established docket for SM parcel transfer. Meredith mag puts video in select copies. Latest USPS org chart available. GovDelivery and Zumbox partner to reduce paper mail. FedEx board declares quarterly dividend. APWU President speaks at union’s national convention. USPS identifies two key ideas from MTAC symposium. UPS reduces expected number of furloughed pilots. Leaving the mail stream: Verizon.
• An update on DMM Advisories issues by the U.S. Postal Service.
• An update on postal rules and notices published in the Federal Register.
• An update on business before the Postal Regulatory Commission.
• An update from the USPS Office of Inspector General.
• A review of postal news from around the world.
• Postal previews

Hey! You've not been getting the weekly PostCom Bulletin--the best postal newsletter anywhere...bar none?  Send us by email your name, company, company title, postal and email address. Get a chance to see what you've been missing.

The PostCom Bulletin is distributed via NetGram

The Financial Express has reported that "The government on Thursday approved second phase of modernisation of post offices at a cost of Rs 1,877 crore. As per the decision, all departmental and Grameen Dak Sevak (GDS) post offices in the country will be computerised. The approval has also been accorded for creation of IT infrastructure, including establishment of data centre, networking of the departmental post offices, development of scalable, integrated and modular software for all operations of the postal department. The project will be implemented over a three year period covering till 2012-13."

The Wall Street Journal told its readers: "Here’s a question: What does a world-leading logistics and mailing company that already delivers 70 million letters a day do for growth? European Pressphoto Agency If you’re Deutsche Post AG, the former state-owned German mail authority, you deliver online advertising. Earlier this week, Bonn, Germany-based Deutsche Post acquired nugg.ad AG, Europe’s largest targeted online ad platform according to the company for an undisclosed sum. With the purchase, it seems Deutsche Post wants to be king of the online ad market. “The acquisition of nugg.ad is our first step into the online advertising market,” Ingo Bohlken, head of marketing for Deutsche Post, told German daily Frankfurter Allegemeine Zeitung. “We want to offer the European advertising market a steady, independent technology platform,” he said."

An online blog has noted that "The U.S. Postal Service (USPS) already facing a $420,000 worker endangerment fine for faulty electrical work at a Vermont mail distribution center has now been slapped with a $350,000 fine for similar violations in New Hampshire. The Occupational Safety and Health Administration (OSHA) says that, just like it did in Vermont, the USPS had knowingly assigned untrained and unqualified workers to perform "troubleshooting and voltage testing on or near live electrical equipment and wiring that had not first been de-energized." "These citations and the sizable fines proposed here reflect the Postal Service's ongoing knowledge of and failure to address conditions that exposed its workers to the severe and potentially deadly hazards of electric shock, arc flashes and arc blasts," said Assistant Secretary of Labor for OSHA Dr. David Michaels in a press release. The really bad news is that by filing "enterprise-wide" complaints against the USPS for these electrical work safety violations, OSHA is implying that more fines for more violations at more postal facilities could be coming. With the USPS losing another $3.5 billion in the third quarter of 2010, you have to wonder - but not for long -- who's going to pay for all this?"

Post & Parcel has reported that "Swiss Post has generated Group profit of 484m Swiss francs for H1 2010 - an increase of 35% year on year. Swiss Post posted good results in all four markets, primarily due to a rise in customer deposits, higher net interest income and the revival of the economy, the company said.

The Next Web has reported that "Home video rental giant Blockbuster is reportedly preparing to file for bankruptcy next month as it struggles to cope with competition from Netflix, Lovefilm and Redbox, companies who have revolutionised the rental industry with their postal and on-demand services."

The Washington Post has reported that "The Carlyle Group suffered a rare setback Wednesday when one of its portfolio companies, toy supplier Oriental Trading Co., filed for bankruptcy protection, citing heavy debt and higher shipping costs. Carlyle bought Oriental Trading in June 2006, during the heady days of the buyout boom, for $1 billion. But the heavy debt load, higher postal rates and the weak economy proved too much for the Nebraska firm. "Dramatically increased postal costs and the Great Recession took their toll on expenses and revenues at the company," Carlyle spokesman Chris Ullman said. "

APWU members vowed to escalate the fi ght against the Postal Service’s plan to eliminate Saturday mail delivery on the fourth day of the union’s 20th Biennial National Convention, unanimously approving a resolution to engage in “rallies, marches, and pickets” in concert with other unions and public interest organizations. The declaration also denounced the “ force relocation” of postal workers and other USPS attacks."

According to the Detroit News, "Tuesday's march in Detroit against the proposed ending of Saturday mail delivery should be seen for what it was: an effort to sustain union jobs and benefits even as the U.S. Postal Service hemorrhages billions of dollars trying to sustain what may no longer make sense."

From the Federal Register:  Postal Regulatory Commission   NOTICES New Postal Product , 52786–52788 [2010–21329] [TEXT]  [PDF]

The Washington Times has reported that "The executive in charge of the U.S. Postal Service's $13 billion supply-management operation has acknowledged "cracks in the system," saying more than 30 percent of the agency's contracting-officer positions remained unfilled. The statements by Susan Brownell, vice president of supply management, were made earlier this year in a previously undisclosed interview with the Postal Service's Office of Inspector General, which was looking into the award of no-bid contracts by a former top postal executive to his former business associates. The inspector general's investigation, which ended this summer, found that several of the contracts awarded by the Postal Service's former top marketing officer violated postal policies and procedures. . . . The Postal Service said it "is not commenting on individual statements made by executives to the inspector general's office during its investigation."

August 26, 2010

The Memphis Democrat has reported that "Rural route or street address? The question has been put to rest by the United States Postal Service in the city of Memphis as official addresses for mail delivered within the city limits have been switched over to the city’s assigned street address. Memphis Post Master Monica March said the process is ongoing, with most affected residents receiving notification at the end of the July. Gail Bell of the USPS address management systems explained the changes. She said the postal service inadvertently issued rural box numbers in place of city-style addresses assigned by the City of Memphis several years ago. The USPS will continue to deliver mail addressed with the old rural route information for one year. All affected patrons are encouraged to make address changes with all regular mailers as soon as possible over the next 12 months. After that time period all mail sent to the former rural route address will be returned to sender."

Business Daily Africa has reported that "The postal and courier businesses are experiencing a decline in the number of letters sent as most Kenyans embrace e-mails and e-commerce, a new report from the industry regulator says. The statistics released by Communication Commission of Kenya (CCK) early this week indicate that the number of letters sent by courier services declined 35.7 per cent from 113,781 during the previous quarter to 73,162 this quarter. During the same period the number of letters sent using postal services fell to 23 million from 25 million letters the previous period. A decline of 9.7 per cent. International incoming letters fell 16.6 per cent from the previous quarter and 25.6 per cent compared to the same period last year."

The Wall Street Journal has reported that "French state-owned postal operator La Poste on Thursday said it is in exclusive talks with mobile operator SFR, subsidiary of French media conglomerate Vivendi SA to launch mobile services under the La Poste brand."

From PR-USA.net: "To facilitate the needs of their international customers MyAddressUS.com has announced the launch of a new updated online package management tool, which provides customers easier international US online purchasing, package management and package forwarding solution."

Dead Tree Edition has told its readers that "The Postal Service's sole-source contracts with associates of former executive Robert F. Bernstock had the tacit approval of Postmaster General Jack Potter, according to documents published last night."

The Courier, Express, and Postal Observer has told its readers that "The Postal Service filed their July 2010 preliminary financials with the Postal Regulatory Commission and the results raise more questions about its financial viability and its ability to develop realistic financial plans."

The Washington Times has reported that "The U.S. postmaster general and his top officials gave investigators varying accounts about the decision to allow a top executive to retain his six-figure outside corporate jobs while working full time, earning more than $230,000 as a vice president of shipping, for the U.S. Postal Service, records show. Newly released memos of extensive interviews conducted earlier this year by the U.S. Postal Service's office of inspector general with Postmaster John E. Potter and other executives provide a rare look into the operations in the top reaches of the Postal Service. The documents also suggest that executives deferred to their former top marketing officer, Robert Bernstock, even as some inside the agency began raising questions about his outside business interests."

Business Daily Africa has reported that "Kenyan companies are adopting electronic funds transfer as a method of paying dividends and other dues to shareholders in a move meant to enhance efficiency and reduce costs incurred in tracking uncollected cheques."

The Toronto Sun has reported that "Rules are rules, says Canada Post, even for double-amputee Tom Thompson, who will have to move his mailbox at least 150 feet to comply with new regulations regarding box placement. “I guess it’s a safety issue for their drivers,” said Thompson, who lives in Simcoe, Ont. “I guess it’s not a safety issue for me when I have to wheel through a foot of snow down the road to get my mail.” Thompson has lost both legs to complications of diabetes. He says the situation is “nuts” because while he has a Decou Road address, his home and mailbox front onto Willow Wood Drive — a short dead-end street with 11 homes. CUPW has complained that rural delivery is ergonomically unsafe for lone drivers. As a result, many delivery vehicles now carry two people — one to drive and one to fill mailboxes. CUPW has also made an issue of the safety of rural delivery routes." [EdNote: You remember CUPW, don't you. Those are the folks who believe every effort should be made to deliver mail to Gaza (despite the Israeli gunboats), but can't see fit to make mail delivery to a double amputee more convenient.]

Press Release: "BÖWE BELL + HOWELL (BBH) today announced the availability of a new service offering that provides small to mid-sized mailers with access to the kind of sophisticated document and data-processing capabilities that are traditionally found only in high-volume production mailers. For more information, contact marketing@bowebellhowell.com or call 1-800-220-3030."

The Kansas City Star has reported that "The U.S. Department of Labor intends to fine the U.S. Postal Service Bulk Mail Center in Kansas City, Kan., for "numerous serious and repeat safety violations." The Occupational Safety and Health Administration proposed a $191,000 penalty after an onsite investigation found hazardous working conditions. Problems cited include "deficiencies in walking/working surfaces, fall protection, sling use, machine guarding, welding and electrical equipment." Also cited were problems associated with "exit routes, eye wash facilities, electrical equipment and hazard communication." [Hundred thousand here, hundred thousand there. Next thing you know it adds up to real money.]

From Canada Post: "Thomas Schmitt, SVP FedEx Solutions is joining Purolator as its new President and CEO. Louis O’Brien, Canada Post, Senior Vice-President and President of the Parcels Line of Business will now be Senior Vice-President, Chief Customer Officer."

The Courier, Express, and Postal Observer has asked: "Are the Postal Service's Earnings Forecast Too Optimistic?"

As the National Post put it: "It’s been too long since we’ve had a Canadian union do something bizarre. So nice of the Canadian Union of Postal Workers to step up to the plate and demonstrate, for the umpteenth time, the strange obsession Canadian organized labour has with rocking boats. Or in this case, a cargo ship. Isn’t it a bit weird that Canadian postal workers are suddenly willing to brave the power of the Israeli Navy to get mail to Gazans when they’re so easily deterred getting mail to you and I? If it snows more than a centimetre or two in Toronto, little notices get put into mailboxes announcing that delivery is suspended until safety conditions in front of the house are improved — i.e. the steps gets shovelled. (Of course, postal workers have to risk death on slippery front steps to deliver the warning, but that’s just another example of their heroic devotion to duty.) In Moose Jaw, delivery was recently cancelled due to the danger of mean birds."

"The U.S. Postal Service’s Financial Condition: Overview and Issues for Congress" Kevin R. Kosar Analyst in American National Government July 29, 2010

The Affordable Mail Alliance – a growing coalition of non-profits, Fortune 500 companies, small businesses, major trade associations, consumer groups, and citizens representing the vast majority of the mail sent in the United States – today announced the addition of its one thousandth member group.

The Washington Post has reported that "FedEx sued New York Attorney General Andrew M. Cuomo, claiming he is overstepping his authority in a state investigation of the company's rates, routes and services. Cuomo notified FedEx in June that his office was investigating the company's insurance policies and coverage for items it ships. His office served a subpoena upon the firm on June 8, 2010, seeking information about FedEx's "rates routes, prices and or services," the company said in its complaint. FedEx has until next week to respond to the subpoena."

The Star has reported that "Through rain, sleet and an international blockade, the Canadian postal workers union is serious about getting mail to Gaza. The union is throwing its support behind a coalition of Islamic and human rights organizations planning to steer a Canadian-registered boat through the Israeli blockade of the Palestinian territory this fall. Such a stamp of approval comes after Israel Post halted mail to the area earlier this month. Canada Post wants to be clear: “This effort is in no way affiliated with or supported by Canada Post,” the Crown corporation said in a statement."

The Associated Press has reported that "Hundreds of postal workers attending their national convention in Detroit marched Tuesday in protest of plans to suspend mail delivery on Saturdays. The Detroit News reports that the blue-shirted American Postal Workers Union members chanted "Five day, no way" as they walked Tuesday from Cobo Center to Campus Martius. The Rev. Jesse Jackson and U.S. Rep. John Conyers participated."

Hellmail has reported that "Consumer Focus Post, the Northern Ireland arm of UK watchdog Consumer Focus, is calling on Royal Mail to be more transparent about the performance of First Class mail delivery between Britain and Northern Ireland. It must also make sure the service meets the UK-wide standard for 93% of first class mail to be delivered the next working day, set by the regulator Postcomm."

Bernama has reported that "Pos Malaysia Bhd's earnings in financial year 2011 will grow by 66.4 per cent from financial year 2010 as full contribution from the postal tariff hike takes effect, according to OSK Research."

From the Federal Register:  Postal Service.

• Environmental Assessments; Availability, etc.:   Mobile Fueling Operations, Nationwide ,   52377 [2010–21149] [TEXT]  [PDF]
• International Product Changes:   United States Postal Service Inbound Competitive Multi-Service Agreements with Foreign Postal Operators ,   52378 [2010–21147] [TEXT]  [PDF]  
• United States Postal Service Inbound Market-Dominant Multi-Service Agreements With Foreign Postal Operators ,   52378 [2010–21148] [TEXT]  [PDF]
• Transfer of Commercial Standard Mail Parcels to Competitive Product List , 52378 [2010–21146] [TEXT]  [PDF]

The latest Postal Service headquarters organizational chart has been posted on this site.

From Business Wire: "GovDelivery, the leading provider of government-to-citizen communication solutions, and Zumbox, the leader in digital postal mail services, today announced a partnership to aid government agencies and municipalities across the United States in dramatically reducing the financial and environmental costs associated with sending paper mail."

AdWeek has reported that "According to Borrell Associates, political ad spending will reach $4.2 billion this year, double the $2.1 billion the firm estimated was spent in 2008." [EdNote: Hey. You wanna reach voters? Reach 'em by mail. With less mail in mailboxes today than during elections past, a well-designed ad is sure to catch voters' attention. So . . . exactly what has the Postal Service done to promote mail to electioneering politicians?]

The Board of Directors of FedEx Corporation has declared a quarterly cash dividend of $0.12 per share on FedEx Corporation common stock. The dividend is payable October 1, 2010 to stockholders of record at the close of business on September 10, 2010.

The Belfast Telegraph has reported that "The Government has been urged to drop Royal Mail privatisation plans after a new survey of 2,000 people showed most people wanted the postal service to remain publicly-owned. Just one in seven polled by Labour leadership contender Ed Balls and the Communication Workers Union (CWU) said they supported the privatisation plan."

DM News has reported that "Direct marketers and catalogers are preparing to face paper cost increases this fall, while also planning for a possible significant postal rate increase in January. Marketers say volatility in the paper market in recent years, due to economic instability, has made it difficult for them to project costs from one year to the next. Many marketers are facing paper price increases of as much as $3 per 100 pounds this fall, on top of prior hikes in April and July, according to notices from paper mills and industry experts. The increase means a 7% to 10% cost increase for buyers, depending on the mill and type of paper. “This is not good news for catalogers,” said Hamilton Davison, president and executive director at the American Catalog Mailers Association. “They're going to get a postage increase that's six-times the rate of inflation and a paper cost increase that is nine times the inflation rate [for the year]."

Trading Markets has reported that "Germany-based postal services provider Deutsche Post is acquiring Germany-based online targeting platform nugg.ad to expand its competence as a service provider in the online advertising market. Nugg.ad will continue as independent targeting service provider for marketers and advertising agencies from the company's headquarters in Berlin."

The Times of Malta has reported that "MaltaPost has been awarded the World Mail Security Award during the 11th World Mail awards held in Copenhagen, Denmark. The World Mail Awards were conceived as a result of discussions at the internationally recognised World Mail & Express Conferences – the unique forum for industry leaders and key decision makers to discuss strategy."

CapitalVue has noted that "Nationwide postal service companies and large-scale express delivery companies generated an operating revenue of 72.84 billion yuan in first 7 months of 2010, up 19 percent year-on-year, reports Yicai.com, citing statistics published by the State Post Bureau. Revenue in July grew 12.8 percent year-on-year to 9.58 billion yuan, according to the State Post Bureau. The shipping volume of nationwide postal service companies and large-scale express delivery companies in the first 7 months of 2010 reached 1.23 billion, up 23.6 percent year-on-year. Express delivery shipping volume in July grew 18.7 percent from year-on-year to 190 million."

It isn't only in America . . . . Hellmail has reported that "TNT Post has lost an appeal against a rejected planning application for a new distribution centre on the outskirts of Derby. The proposed industrial development had originally been rejected by Derbyshire District Council but despite an appeal, the decision to turn down the planning application was upheld by government inspectors, agreeing with Derbyshire District Council that the development would impact on nearby listed buildings."

Mlive has reported that "More than 3,000 members of the American Postal Workers Union are expected to march from Cobo Center to Campus Martius in downtown Detroit today in an act of protest against management proposals to end Saturday mail delivery."

"APWU President William Burrus told delegates to the 20th Biennial National Convention that the union is “alive and strong.” Despite the nation’s frail economy, “We can point with pride to the fact that our members were shielded from the tragic effects of layoffs and downsizing,” he said."

Aol News gave a pop quiz -- "Based on Congress' legislative output over the past year and a half, what do you think is the most pressing issue facing the country? The crummy economy? Terrorist threats? Health care costs? The sorry state of education? National defense? Global warming? Immigration? Answer: None of the above. Nope, the biggest problem facing America today is ... the desperate lack of appropriately named post offices."

According to Advertising Age, the "boom in multigenerational households has wide implications for ad industry."

Media Daily News has reported that "Streaming video advertising will see continued big growth -- increasing more than 60% to $5.6 billion next year."

Printing Impressions World has noted that "Against all odds, traditional advertising is perceived by consumers as more informative, entertaining and necessary than online advertising. Of more than 1,200 people surveyed for digital marketing show ad:tech London by Zussi Research, 69 percent believed traditional advertising was relevant to them, compared with 45 percent for online. For the TV target audience—those aged between 25-34-years old—the gap widens further: 81 percent (traditional) vs. 53 percent (online). Worse still for digital marketers, annoyance around advertising on the Web is twice as high online as offline. Comments made were that digital advertising is "ill-structured," "mainly irrelevant" and represents a bigger, unwanted distraction for the consumer, rather than a subtle influence."

From Business Wire: "Pitney Bowes Inc. has announced it is offering a new tabletop, dual-head tabber system for U.S. mailers. The Pitney Bowes W360 Multifunction Tabber System provides several tabbing applications and stamp affixing in one solution to help mailers meet the latest United States Postal Service (USPS) tabbing regulations and efficiently prepare letter-size self-mailers and booklets for delivery."

August 23, 2010

The Observer has reported that "The CID has recommended that James Arinaitwe, the managing director of Posta Uganda, and some of his staff, be prosecuted for abuse of office, influence peddling and nepotism."

Government Executive has reported that "In an Aug. 16 report, USPS Deputy Assistant Inspector General for Financial Accountability John Cihota found that a $6.8 billion surplus in Federal Employees Retirement System contributions is affecting the Postal Service's financial stability and operational efficiency. The report recommended the Postal Service pursue legislative action to adjust its funding requirements until the FERS surplus is reduced. In addition, the Office of Personnel Management should establish a subaccount for USPS' retiree benefits contributions to increase transparency. Such changes would increase cash flow, help the agency cover its expenses and bring its pension funds in line with the private sector. In comments on the report, Postal Service Chief Financial Officer and Executive Vice President Joseph Corbett and Government Relations and Public Policy Vice President Marie Therese Dominguez agreed with auditors' findings, but cautioned that legislative action won't be easy. "It will take a comprehensive educational effort to inform Congress regarding this development," they wrote. "It should be noted that any legislative changes will be challenging due to the crowded congressional calendar and the potential federal budget scoring issues this may trigger."

The Ghana Government has announced that "The Government will continue to support reforms and modernisation of Ghana Post, in order to provide greater flexibility in its operations. The Deputy Minister for Communications, Mr. Gideon Quarcoo, gave the assurance at the opening of a five-day Regional Workshop in Accra, for five West African countries on the adoption of new approaches to field support for quality service delivery."

The Mailers Technical Advisory Committee (MTAC) has established a workgroup (#139) addressing "Start-the-Clock for all Business Mail." The workgroup will develop an approach to calculate and provision start-the-clock information for non Full-Service mail. Among the desired outcomes are: (1) Develop an approach to calculate and provision the start-the-clock for non Full-Service business mail (2) Mail that is entered at USPS acceptance sites (3) Mail that is drop-shipped (4) Mail that is verified at detached mail units and transported to origin USPS facilities. (5) Leverage the online reports and Mail.XML messages developed for Full-Service to promote an approach to provision start-the-clock information for non Full-Service mail to mail owners and mail preparers. (6) Evaluate the check-in processes at acceptance sites, electronic documentation, mail entry appointment processes and customer supplier agreements to determine optimal approaches for calculating accurate start-the-clock for non Full-Service business mail.

• Are They Listening To Me? Keeping in mind the old saying “none of us is as smart as all of us,” this week’s blog looks at the Postal Service’s system for collecting employee ideas through the eIDEAS program. Is this the best way to encourage and gather employee input? Take our poll and link to the blog to tell us what you think.

At the Postal Regulatory Commission: The Buffalo NY Field Hearing Transcript has been posted on the PRC web site.

Finance & Commerce has reported that "MoneyGram International expanded its international agent network again by signing agreements with national post offices in Kazakhstan and Moldova."

DMM Advisory:  IMb™ Services Update. BSA Agreement Revision (November 1, 2010): The USPS® has revised the online agreement which describes the terms and conditions for the use of USPS computing systems and Business Customer Gateway online services. Existing Business Services Administrators (BSAs) will be required to accept the new agreement between November 1 and December 15, 2010, in order to maintain access to Business Customer Gateway services. For more details and to preview the revised agreement, go to http://ribbs.usps.gov/intelligentmail_gateway/documents/tech_guides/BSAAgreement.pdf.

The Press Association has reported that "The Government has been urged to drop Royal Mail privatisation plans after a new survey showed that most people wanted the postal service to remain publicly-owned. Just one in seven of 2,000 people polled by Labour leadership contender Ed Balls and the Communication Workers Union said they supported privatisation. Just over half of Conservative voters and two-thirds of Liberal Democrats supported a fully publicly-owned Royal Mail."

According to Philadephia magazine, "In its “Action Plan For The Future,” the USPS says the post office of 2020 should be able to “maintain current high levels of service and performance.” Here’s my prediction for the future — if they think the level of service we’re getting in 2010 is high, there won’t be a post office to complain about in 10 years."

The Post has reported that "The government has clashed with the Commission for Communications Regulation (ComReg) after the watchdog attempted to transfer millions of euro from its operating surplus to prop up its ailing pension fund. The Sunday Business Post has learned that the Department of Finance intervened after it emerged that ComReg had transferred €2.5 million from its 2008 operating surplus to help plug a €5 million pension deficit. ComReg also intended to transfer a further €2.5 million from its 2009 surplus to wipe out the pension shortfall completely. The money was due to come from the operating surplus, which would otherwise be transferred to the exchequer. Following government queries, ComReg has agreed to ‘‘restore the €2.5 million payments’’, and the commission is working on an alternative solution to deal with the pension problem."

August 22, 2010

At the Postal Regulatory Commission:  The Commission establishes Docket No. MC2010-36 to consider the Postal Service’s proposal to transfer commercial Standard Mail Fulfillment Parcels to the competitive product list. Interested persons may submit comments on whether the Postal Service’s filing in the captioned docket is consistent with the policies of 39 U.S.C. 3633, 39 U.S.C. 3642, and 39 CFR 3020 subpart B. Comments are due no later than September 17, 2010. Reply comments, if any, are due October 15, 2010.

People's Daily has reported that "Companies delivering mail as slowly as their customers want are popping up all over China, in cities like Beijing, Chongqing, Hefei and Hangzhou. The price of the service depends on how long clients want their mail to be held, and a longer period is more expensive."

The Green Bay Press Gazette has noted that "This is not the first time the members of the American Postal Workers Union Local 178 have had to make the case to keep U.S. Postal Service functions and their 100 to 150 jobs in Oshkosh.The Postal Service had studied moving Green Bay's outgoing mail function to the Oshkosh plant, but recently scrapped that plan. Union representatives in Oshkosh expressed concern residential and business customers in any ZIP code that begins with 549 could have to deal with later morning deliveries, earlier mail pickups and longer delivery times if a USPS study recommends consolidating Oshkosh operations into Green Bay."

August 20, 2010

A new report has been posted today on the U.S. Postal Service Office of Inspector General website (http://www.uspsoig.gov/). If you have additional questions concerning this report, please contact Agapi Doulaveris at 703.248.2286. Territorial Cost–of–Living Allowance (Report Number FT-AR-10-012)

As ZDNet has noted, "With most businesses Doc’s been involved in, when sales go down you make every effort to lower your prices to try to get the volume back up. Combining a decrease in volume with price increases is often a fatal mistake. That’s why Doc is concerned about the United States Postal Service and its plan to raise postage rates in response to a lower volume of mail. Higher postage rates will more than likely translate into even lower sales as magazines, catalogers, and other direct-mail users look for ways to cut back on expenses. It surely isn’t a given that volume will remain constant. If mail volume is down as much as the USPS is claiming, there may be a systemic problem that eventually has to be addressed: the drop is permanent and volume may not come back. One thing for certain – if prices go up enough, then volume will drop even more and the whole cycle will repeat itself over and over again until only those who absolutely have to will be using the mail as a marketing and communications vehicle. So let’s be careful not to price direct mail so high that moving to electronic communications is the only viable option. Doc prefers choice in the marketplace and encourages the USPS to consider the competition very carefully before raising rates as the solution to a budget shortfall. Maybe now is the time to have a big sale!"

Now hear this: "This Week In Postal".........the latest podcast posted now!

 
The latest issue of the PostCom Bulletin is available online. In this issue:

• The USPS Office of Inspector General (IG) has once again found that the Postal Service is paying more than its fair share of retiree benefit payments owed to the federal government. The latest IG review involved the Federal Employees Retirement System (FERS) and the projected fund surplus as of September 30, 2009. FERS is one component of the Civil Service Retirement and Disability Fund (CSRDF) and the IG said “. . . at the end of fiscal year (FY) 2009, the [Office of Personnel Management] OPM projected a $6.8 billion surplus [resulting in a $5.5 billion adjusted surplus] in the FERS portion of the CSRDF.”
• The USPS earlier this week filed a request with the Postal Regulatory Commission (PRC) to transfer commercial Standard Mail Fulfillment Parcels from the market-dominant product list to the competitive product list, where the products would become a lightweight category of Parcel Select if the request is approved. The USPS noted that its request is structured based on the assumption that the PRC would approve the Standard Mail parcel design changes requested in its exigent price increase filing. It said that the transfer would have no impact on the proposed 23.3 percent price increase for this product category, and would allow it to offer customers more comprehensive shipping solutions.
• The Postal Service published its unaudited June results with the Postal Regulatory Commission. USPS lost $2.5 billion in June 2010. This is brings the year-to-date loss to $5.4 billion.
• The Association for Postal Commerce (PostCom) has filed its comments with the Postal Regulatory Commission (PRC) in the docket concerning the Postal Service's exigency rate increase request.
• The Affordable Mail Alliance submitted further comments to the Postal Regulatory Commission yesterday. The comments focused on last week’s hearings at the Commission, where the Postal Service admitted that it is not facing an immediate cash crisis – the original rationale for demanding a rate increase ten times the rate of inflation.
• The Association for Postal Commerce has presented a separate communication to the Postal Regulatory Commission regarding the adversities created by the Postal Service's filing for an exigency request.
• According to the Courier, Express, and Postal Observer, "rates for Postal Services eventually need to reflect market realities and the costs of an efficient operator both capable of and working toward managing operations to cost levels that market realities can support. This requires a better understanding of the value of mail to customers, the elimination of unwarranted retiree expenses, the streamlining of management and contract resources, the speedy restructuring of the network to minimize delivery, processing and transportation costs while still meeting universal service requirements, and elimination of restrictions that prevent the most effective use of human capital, physical and intellectual property assets. The exigent rate case conducted in a vacuum brings us no closer to producing rates based on market realities and may hinder fixing a number of the serious flaws in the business model and regulatory framework that must be changed."
• The USPS Office of Inspector General (IG) has released its self-initiated audit of the Postal Service’s Station and Branch Optimization and Consolidation (SBOC) Initiative. This is the first in a series of retail optimization reviews. The IG identified more than $2.7 million in funds that could be put to better use related to the untimely discontinuance decisions and missed opportunities to reduce lease costs.
• The U.S. Postal Service Vice President Gary Reblin talked with the mailing industry this week on the changes the USPS is introducing for the January 2011 shipping services price change. The implementation date is set for January 4, 2011. The Postal Service will be offering new cubic pricing - dense products at very competitive prices, and new products in additional to more flat rate products.
• According to the Courier, Express, and Postal Observer, "in his quarterly filing of investment holdings, Warren Buffett announced a new investment by Berkshire Hathaway in a competitor to the Postal Service. That competitor is Fiserv. (FISV) With this investment, Berkshire Hathaway becomes the 6th largest investor in the company."
• As the Courier, Express, and Postal Observer has noted, "in the United States, the policy debate is over how the Postal Service will survive past the end of the fiscal year. In Great Britain and Canada the debate is now respectfully when and if the Post should be privatized. Royal Mail clearly is on a path toward privatization.
• USPS to offer products at Office Depot. Mail handlers accuse Collins of “mischaracterizing.” NALC President re-elected. Postal workers told to go voiceless. Siemens wins postal contract. CT paper says USPS isn’t in business of cutting costs.
• An update on DMM Advisories issues by the U.S. Postal Service.
• An update on postal rules and notices published in the Federal Register.
• An update on business before the Postal Regulatory Commission.
• An update from the USPS Office of Inspector General.
• A review of postal news from around the world.
• Postal previews.

The PostCom Bulletin is distributed via NetGram

According to Engadget Mobile, "It didn't take long for Visa to react to the three-headed beast of AT&T, T-Mobile and Verizon entering the mobile payments arena. The world's foremost payment processing company has just announced that it's about to start a trial of its contactless payment system in partnership with Bank of America. Kicking off in the New York area this September and lasting through the end of the year, the scheme will most likely involve the MicroSD NFC communicator and In2Pay iPhone case that DeviceFidelity has been developing for Visa."

From PajamasMedia: "New Zealand: Where the Words ‘Profit’ and ‘Postal Service’ Belong in the Same Sentence."

From Marketwire: "Stamps.com® (NASDAQ: STMP), the leading provider of USPS® postage online and shipping software solutions to approximately 400,000 customers, today announced that Forbes.com has identified it as one of the most trustworthy publicly traded companies."

According to The Telegraph, "Over the next few months, Royal Mail and the Post Office are set to undergo some of the most radical changes in their 350-year history. The spur will be two major policy announcements: the publication of an updated version of Richard Hooper's 2008 report on the future of Royal Mail, which originally recommended its part-privatisation, and the launch of a new Postal Services Bill by Vince Cable's Department for Business. The challenges to both are vast: pension deficits, funding problems, lower demand. Yet there is another structural problem which rarely gets a mention – the costly and excessive bureaucracy that threatens to suffocate our national postal service, and prevents Royal Mail from competing effectively."

Post & Parcel has reported that "Guernsey Post and the Office of Utility Regulation (OUR) have reached an agreement which it is hoped will end the litigation over increased competition in the Reserved Area."

Capital Business has reported that "Four hundred Postal Corporation of Kenya employees are up for voluntary retirement as the company seeks to restructure itself and improve efficiency. Information and Communications Minister Samuel Poghisio says the move is not a retrenchment exercise but measures to make the corporation lean as it makes room to grow its revenues."

Mad.co.uk has reported that "TNT Post is expanding the range of data services it offers to direct marketers as the postal company looks to take on rival Royal Mail. The UK’s second largest postal company is launching adMail to promote “best practice in data management” through suppression of customer and prospect data against consumer and business data files."

Postal news from Hellmail:

• TNT Post Introduces Admail For Promotional Direct Mail
• Portugese Mobile Phone Users Gain Post Office Location Service
• Correos Goes Electric In Urban Areas
• Pitney Bowes Employees Through to the Final of National Sales Competition
• Top Names For UK Catalogue And Online Retail Conference
• Leaflets More Effective Than TV, Newspapers Or Web
• Eagle Soars High With New Scottish Public Sector Contract

From the Federal Register: Postal Regulatory Commission   NOTICES Changes in Postal Rates , 51504–51505 [2010–20666] [TEXT]  [PDF] Meetings; Sunshine Act , 51505 [2010–20836] [TEXT]  [PDF] New Postal Product , 51505–51506 [2010–20645] [TEXT]  [PDF]

August 19, 2010

At the Postal Regulatory Commission:

• CP2010-95 Order No. 517 - Notice and Order Concerning Adding Inbound Competitive Multi-Service Agreements with Foreign Postal Operators to the Competitive Product List and Negotiated Service Agreement
  http://www.prc.gov/docs/69/69813/Order_No_517.doc
  http://www.prc.gov/docs/69/69813/Order_No_517.pdf
• MC2010-34 Order No. 517 - Notice and Order Concerning Adding Inbound Competitive Multi-Service Agreements with Foreign Postal Operators to the Competitive Product List and Negotiated Service Agreement
  http://www.prc.gov/docs/69/69813/Order_No_517.doc
  http://www.prc.gov/docs/69/69813/Order_No_517.pdf

The Northwestern has reported that "American Postal Workers Union Local 178 fight to keep jobs in Oshkosh."

According to the Jewish Tribune, "The reason Israel is not delivering mail to Gaza is, plain and simple, a security issue. There has been negative publicity in Canada recently, led by the Canadian Union of Postal Workers (CUPW), regarding Canada Post’s recent announcement that it cannot accept mail destined for Gaza because Israel is not willing to forward it. According to CUPW’s web site, “numerous organizations are working together to endorse a Canadian boat to Gaza in the autumn. Others, including Independent Jewish Voices, have supported the idea of getting mail onto the boat.”  The Jewish Tribune contacted Israel Post and received a quick and clear explanation from the Coordination of Government Activities in the Territories (CoGAT). Spokesperson Major Guy Inbar said, “Mail transferring between Israel and Gaza requires coordination between the Israel Postal Company and the Palestinian Postal Authority, which is in Ramallah. “The mail transferring is delayed these days due to the fact that the Palestinian Postal Authority has not yet appointed a replacement for the chief of mail transferring in the Palestinian Authority, who was arrested by the Israeli security forces, despite calls from Israel towards the Ministry of Civil Affairs in the Palestinian Authority and the chief executive officer of the Palestinian Communications Ministry, to appoint a new representative. “With the appointment of a new representative on the Palestinian side, the mechanism of the coordination of mail transferring will be active again.”

Arab News, on the other hand, has reported that "Israel is imposing a postal blockade on Gaza, officials in the Hamas government have claimed, calling on the international community to intervene. Yousef Al-Mansi, Hamas Minister of Communications and Information Technology, called Monday for the Universal Postal Union and international human rights groups to intervene and pressure Israel into allowing mail to enter and exit the Gaza Strip. “For the past four months mail delivery into the Gaza Strip has been disrupted,” Jalal Isma’il, Director General of the Gaza Communications Ministry told The Media Line. “Regular mail has been delayed, and government mail has not entered at all.” Isma’il said that mail disruptions are not a new phenomenon in Gaza, but have worsened recently."

August 18, 2010

According to the Courier, Express, and Postal Observer, "rates for Postal Services eventually need to reflect market realities and the costs of an efficient operator both capable of and working toward managing operations to cost levels that market realities can support. This requires a better understanding of the value of mail to customers, the elimination of unwarranted retiree expenses, the streamlining of management and contract resources, the speedy restructuring of the network to minimize delivery, processing and transportation costs while still meeting universal service requirements, and elimination of restrictions that prevent the most effective use of human capital, physical and intellectual property assets. The exigent rate case conducted in a vacuum brings us no closer to producing rates based on market realities and may hinder fixing a number of the serious flaws in the business model and regulatory framework that must be changed."

At the Postal Regulatory Commission:

• In comments provided to the Postal Regulatory Commission, the Association for Postal Commerce noted the adverse impacts that Postal Service's filing for an exigency increase already have had on businesses that use or provide services to users of mail for business communication and commerce. PostCom noted that these adverse impacts will be made considerably worse, if the Postal Regulatory Commission approves the Postal Service's exigency rate request.

• R2010-4 Affordable Mail Alliance Mailer Impact Statements
  http://www.prc.gov/docs/69/69792/10-08-18%20AMA%20IMPACT.pdf
• CP2010-72 Reply Comments of United States Postal Service
  http://www.prc.gov/docs/69/69800/Final%20USPS%20Reply.pdf
• MC2010-29 Reply Comments of United States Postal Service
  http://www.prc.gov/docs/69/69800/Final%20USPS%20Reply.pdf
• Responses of USPS Witness Masse to the Presiding Officer of Docket No. R2010-4: Some highlights. (1) Regarding FSS, for FY2010, the net savings are $43 million. For FY2011, the net savings are $242 million. (2) With an additional $4B RHB pre-funding deferral in Sep 2011, we would have sufficient cash during 2011 under both scenarios. (3) Delivery unit costs grew faster than wages. (4) There are many factors that affect the cost measurements, and it is not necessarily possible to pinpoint the exact causes of changes over time. (4) Regarding flat sequencing, the Postal Service is determined to make the most of the new FSS technology in the face of unprecedented changes in volume. (5) In 2011, we expect 4,500 of the non-bargaining employees affected by the freeze to attrite.

• Federal Employees Retirement System Overfunding (Report Number FT-MA-10-001). The Postal Service has opportunities to use at least $5.5 billion5 of the $6.8 billion in Federal Employees Retirement System (FERS) surplus funds to address its current and future financial condition. We found the Postal Service continues to overfund its retirement obligations and there is no present legislation to resolve surpluses. Further, it is vital that the Postal Service’s responsibilities be clearly delineated and separated from those of the rest of the federal government. Although we did not review the current actuarial valuation of the FERS pension liability, we did find that known or future changes to the valuation will impact funding of the FERS pension.

The Associated Press has reported that "he top executive at FedEx Corp. saw his total compensation package drop by about 4 percent in the latest fiscal year, an Associated Press analysis shows. President and CEO Fred Smith took home a salary of about $1.19 million for the fiscal year ending in May, according to a filing late Monday with the Securities and Exchange Commission. That's about 12 percent lower than his 2009 salary of nearly $1.36 million — the result of FedEx's companywide pay cuts it made when the recession was at its worst point. FedEx announced broad-based cost cuts about halfway through its 2009 fiscal year, which included a 20 percent pay cut for Smith, a 7.5 to 10 percent cut for other executives and a 5 percent cut for thousands of others. The pay cuts were permanent; other benefits including retirement plan contributions and bonuses have been reinstated."

August 17, 2010

PostCom Members!! The latest issue of PostCom's PostOps Update has been posted on this site.

• IMb Full-Service Usage Continues to Increase
• USPS to Migrate to New FAST Help Desk August 30
• USPS Delays eDoc Non-Compliance Postage Consequences until Jan. 2011
• USPS to Begin Enforcement of IMb Full-Service Address Correction Requirements in November 2010
• Customers Present Revenue/Volume Growth Ideas to USPS
• Mail Acceptance Still a SOX Compliance Issue
• Majority of Mail in Compliance with Move Update
• Full-Service IMb for Mailers Using TMS
• IMb Requirements for Reply Mail in May 2011
• USPS Continues to Pursue Cost Savings Strategies
• MLNA/BCNO Policy Modification
• New Pub 363 to Contain Move Update Official Regs
• SuiteLink Reminder
• Folded Self-Mailers Test Results Still Pending
• Optional FSS Preparation Rules Take Effect Jan. 2011
• USPS Not Pulling Plug on Advance/ ePubWatch Programs...(Yet?)
• New MTAC User Groups and Task Teams
• USPS Lays Out Policy for Mailings with January 2011 Prices

At the Postal Regulatory Commission:

• Presiding Officer’S Ruling Scheduling Witnesses - Docket No. N2010-1

Docket No. R2010-4:

(1) The Association for Postal Commerce (PostCom) has filed its comments with the Postal Regulatory Commission (PRC) in the docket concerning the Postal Service's exigency rate increase request. PostCom told the PRC:

•  It urges the Commission to dismiss the Postal Service’s filing on the grounds stated in AMA’s July 26 motion to dismiss and the further AMA comments filed separately today.
• The Commission should dismiss this case in its entirety.
• The Postal Service has impermissibly comingled changes in Standard Mail products, rate design, and rate incentives with the unrelated request for additional overall revenues because of supposedly exigent circumstances. The Postal Service has made no attempt to show that the product and rate changes, many of which have never been submitted to the Commission for review, meet the criteria of the Postal Accountability and Enhancement Act (“PAEA”) or the Commission’s rules.
• The Postal Service has packed into its exigent rate request changes in products and rate relationships that have not heretofore been presented to mailers or reviewed by the Commission.
• The Postal Service’s circumvention of the rules and procedures specifically established by the Commission for these types of changes has deprived mailers of the opportunity to meaningfully review and comment on the changes, amounting to a denial of due process.
• The Postal Service has eliminated the Standard Mail Not Flat-Machinable/Parcels product, as evidenced by the elimination of the Not-Flat Machinables price category, and added the Marketing Parcels, Fulfillment Parcels, and Regular Marketing Parcels products; has changed the breakpoint for certain letters, effectively blurring the distinction between letter-shaped and flat-shaped products; has altered the rate relationship between basic ECR and 5-digit automation, presumably to induce migrations of flats between two heretofore distinct subclasses; has eliminated the procedure for allowing rigid flats to mail at automation flats rates; and has heightened the Move Update Performance Based Verification requirement. These changes are far more extensive than the clerical or ministerial changes to the Mail Classification Schedule contemplated by section 3020.90.
• Considering the Postal Service’s proposed changes to market dominant products and the rate relationships between these products not only would violate Congressional intent and the Commission’s own rules, but it also would contravene the fundamental notions of due process embodied in the Constitution and the Administrative Procedure Act.
• The Commission should order the Postal Service to initiate a separate docket for consideration of these changes. The instant docket should be focused solely on the need for an exigent rate increase for products as they currently exist.

(2) A coalition of flat mail users has told the Commission that:

• The failure of Periodicals and Standard Mail Flats to cover the costs attributed to them by the Postal Service is primarily a function of the Postal Service’s inability to gain control of its operating costs, which have outpaced the rate of inflation for years. Rather than try to price its way out of negative contribution, the Postal Service should focus on reducing its costs.
• The Postal Service has grossly overstated the costs properly attributable to these products by ignoring the effect of excess capacity on cost causation during the period until the proposed rates are raised again. Contrary to the Postal Service’s assumption, Periodicals and Standard Mail Flats are not the cause of the large amounts of excess capacity in the operations where they are processed, and in fact cover the attributable costs they actually cause.
• Rather than accept the Postal Service’s proposed increases, the Commission should make clear that it expects the Postal Service to focus on bringing its costs in line with inflation.

(3) The Parcel Shippers Association has told the Commission:

• In this case the Postal Service makes a serious miscalculation visiting excessive “rate shock” on mailers of NFMs/Parcels by unexpectedly increasing prices in an unreasonable and inequitable manner. It professes a “cautious approach”3 with respect to Standard Mail Flats prices, but abandons all caution when it comes to increases for NFMs/Parcels.
• The huge, disproportionate, unexpected increases for NFMs/Parcels are unnecessary, will not materially improve the Postal Service’s financial position, and will cause significant economic harm to its customers.
• The Commission should not approve the proposed price increases. Rather it should order the Postal Service to resubmit a reasonable and equitable price schedule with an average increase no more than the largest average “moderate” increase for other products. Reasonable is rational, in accord with common sense, not exorbitant.
• These huge increases are not necessary. They are not required by law. They are not necessary to prepare the product for transfer to the competitive product list. They 10 will not significantly improve the Postal Service’s financial situation. They are based on data that inspires no confidence.
• From FY 2008 to FY 2009, NFMs/Parcels unit costs increased by 12 percent. One-third of the cost increase in dollar terms came from a nearly thirty 4 percent increase in city carrier costs, an area where the Postal Service had “material excess capacity.”
• From FY 2008 to FY 2009, the level of worksharing in the NFMs/Parcels product increased substantially, reducing unit costs.
• PSA urges the Commission to disapprove the price increases proposed for Standard Mail NFMs/Parcels and order the Postal Service to submit a reasonable and equitable and necessary price schedule for NFMs/Parcels with an 10 average increase no more than the largest average “moderate” increase for other products.

More on the Postal Service's proposal to move Standard parcels to the competitive product category:

• In fiscal year 2009, the four currently existing Standard Mail parcel categories – commercial Standard Mail Parcels, nonprofit Standard Mail Parcels, commercial Standard Mail Not Flat Machinables (NFMs), and nonprofit Standard Mail NFMs – collectively had a cost coverage of 75.23 percent.

• Given the somewhat confusing distinction between parcels and NFMs, the Postal Service has also sought in Docket No. R2010-4 to segment its parcel offerings into two main categories – “Marketing Parcels” and “Fulfillment Parcels.” Commercial and nonprofit Standard Mail NFMs would become Standard Mail Marketing Parcels, while commercial and nonprofit Standard Mail Parcels would become Standard Mail Fulfillment Parcels.

• Outside of the Postal Service, parcel shipping is a seamless marketplace. The Postal Service’s competitors make no significant distinctions in their parcel offerings based on weight.

• The proposed transfer will allow the Postal Service to provide comprehensive shipping solutions to its customers, including through contracts that cover all parcels regardless of weight.

Media Daily News has asked: "Will tablets save the magazine business? Nope. But if the industry's hopes for the iPad and its ilk pan out, digital editions could give the industry a billion-dollar boost in a few years. That's the conclusion of a new study sponsored by Next Issue Media, that's supposed to determine the industry's future, reports All Things Digital. It says iPad magazines and similar stuff will generate $3 billion in advertising and circulation revenue in 2014, assuming that the market expands beyond Apple to include Google and other competitors. But after you account for print dollars the digital versions will cannibalize, that nets out to $1.3 billion in incremental revenue." [EdNote: Who knows? The Postal Service soon may have fewer automation-compatible flats to kick around any more.]

Seeing the light . . . . After disparaging the Affordable Mail Alliance for its efforts to hold the USPS accountable for its dismal response to the current economic situation, it appears as if the Greeting Card Association has seen the light. In its filing with the Postal Regulatory Commission, it said that "apart from institutional considerations such as the lag between collective bargaining agreements and movements in the economy and some constraints PAEA imposes, it is astonishing that the Postal Service should be asking for any rate increase when 80 percent of its cost structure, i.e. its labor costs, should be stable or falling in a free and open market. Postal rates should be steady or falling because labor rates should be steady or falling in this macroeconomic environment. It is natural to ask why they are not, by comparison with the private sector, which the Postal Service has been shaped by Congress to emulate since the Postal Reorganization Act of 1970, and even more under PAEA." [EdNote: And why do you think what you believe should have been happening has not happened?]

More signs of a digital sea-change . . . . PhoneArena has reported that "for years now, universities have given their incoming freshmen iPods and laptops as ‘Welcome-to-college!’ perks. Now, some universities are offering more focused educational tools. At USC Annenberg’s school of journalism, students of professor Bill Celis’ “Specialized Reporting: Education, Youth and Learning” course will receive Apple iPads, audio recorders, and cameras in order to capture the news when and where they occur. Rather than lug around a full-size laptop dependent on Wi-Fi, students can carry the 1.6 pound iPad which will provide Internet anywhere in range of AT&T’s service. The iPad is also coming to the medical sector. Students of UC Irvine’s medical school will receive iPads in order to digitally maintain their notes, textbooks, recorded lectures, and even professor-produced podcasts. Even more exciting are the new digital stethoscopes and ultrasound machines which will connect to the iPad, allowing students to compare their recordings with digital libraries, aiding accurate diagnosis."

From PR-CANADA: "Letter Carriers union President Fredric V. Rolando was elected by acclamation to a four-year term as head of the 295,000-member postal union by delegates to the 67th Biennial Convention of the National Association of Letter Carriers, the union announced today."

Press Release: "First-Class® and Standard mailers who seek to improve the effectiveness of their mailpieces and optimize their operations are showing great interest in BÖWE BELL + HOWELL’s (BBH) recently introduced BBH® MAILStream™ Inveloper – an innovative system that provides nearly unlimited potential for mailpiece customization. The process behind the MAILStream Inveloper utilizes blank white roll material to create either closed-faced or windowed envelopes for the new patent-pending “Invelope™” format, eliminating the need for traditional envelopes."

Postal Technology International has reported that "Royal Mail’s director of corporate and government affairs, Mary Fangan, is leaving the organisation after seven years. Fagan is expected to depart by the end of the year without a new role lined up. A spokesman for Royal Mail said the search for a successor was under way."

The APWU is asking union members to boycott USPS “Voice of the Employee” surveys in order to prevent management from manipulating the results to undercut the union during upcoming contract negotiations.

From PRLog: "Buying Solutions is the national procurement partner for all UK public services and is part of the Efficiency and Reform Group within the Cabinet Office. The four year appointment means that CFH is now able to supply hybrid mail services for public sector contracts throughout the UK."

Postal Service as a National Asset. As the financial crisis drags on into its third year, governments are trying to find ways to finance or pay off mounting deficits. Greece plans to sell off part of Hellenic Post as a condition of its financial rescue package. Is this a good strategy? Link to the blog to tell us what you think.

At the Postal Regulatory Commission:  In a separate communication (and a truly extraordinary one for), the Envelope Manufacturers Associaton told the PRC that "we think there is an important precedent here that should not be violated. That precedent is that the Postal Service must operate under the parameters that were set up in PAEA for an important reason; to incentivize the USPS to operate in a businesslike manner. If we want to have our Postal Service here in the future, it must operate its business under these parameters. We cannot return to the previous system of ratemaking. If we allow the United States Postal Service to breach the intent that was put in place in 2006, we believe we do long-term harm to ever operating the Postal Service as a business. We believe that a recession is not an exceptional circumstance under the law as we understand it, and we should not set a precedent for future generations to have to deal with by breaching an important protection for postal customers that was designed to ensure the Postal Service would be here in the future."

FedEx today announced plans to strengthen the company’s international and domestic services across India. FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX), and the world’s largest express transportation company, has launched a new flight from Bengaluru establishing direct connections to Europe and the Middle East and the U.S. With this, Bengaluru becomes the third Indian gateway for FedEx joining Delhi and Mumbai and enhancing FedEx customers’ access to the global marketplace.http://news.van.fedex.com/intl/in?node=16845

Government Executive has reported that "In an interview with Government Executive, USPS Chief Human Resources Officer and Executive Vice President Anthony Vegliante said having a strong workforce succession planning process to identify employees to fill important leadership vacancies is the key to managing the agency's 500 executive and 40 officer positions."

August 13, 2010

 
The latest issue of the PostCom Bulletin is available online. In this issue:

• The Postal Service released its unaudited third quarter financials for Fiscal Year 2010 which showed a loss of $3.5 billion for the three months ending June 30, and $5.4 billion year-to-date loss. It has experienced a negative operating results in fourteen of the last sixteen quarters.
• Senator Susan Collins (R-ME) submitted a letter to the Postal Regulatory Commission (PRC) to comment on the circumstances under which an exigent rate case is authorized under the Postal Accountability and Enhancement Act of 2006 (PAEA). The purpose of the letter, according to Senator Collins, is “. . . to make the congressional intent regarding the provision completely unambiguous as the Postal Regulatory Commission considers the pending the Postal Service request.
• A synopsis of some of the questions and answers posed to postal witnesses at hearings conducted by the Postal Regulatory Commission in the matter of Docket No. R2010-4.
• Dead Tree Edition has told its readers that "the U.S. Postal Service proved this week what mailers have been saying for weeks -- that it is seeking exigent rate increases without first having done everything it can to reduce costs."
• America. The bulwark of free-market economics and capitalism being hamstrung by a postal system that is functioning with all of the certainty of some third-world utility. It's not only enough to make you weep; it's pathetic. It's high time something happen to bring about some very much needed change. And whatever change there might has darn well be for the better. An opinion by postal commentator Gene Del Polito.
• The USPS Office of Inspector General (IG) has released the results of its self-initiated audit of the fiscal year (FY) 2010 PostalOne! outages and how it impacted the Postal Service’s operations and revenue collection. The IG considers all $298 million in late postage as revenue at risk.
• The Postal Service, as well as its customers and regulators, are anxiously looking forward to the Q4 FY 2010 service performance reports – which will be the first quarterly reports to reflect performance using the live Intelligent Mail Full-Service data, rather than the limited data provided by pilot participants. Unfortunately, according to the USPS, the transition to live IMb Full-Service data is not without challenges, and a large percentage of the live IMb data is being excluded from the service measurement system.
• The USPS last week posted its Quarter 3 results which reflect service performance between April 1, 2010 and June 30, 2010. According to the USPS’ measurement reports, First-Class Mail service performance improved in all measured categories; Standard Mail service performance improved in all measured categories – including an unexplained jump of over 25 percentage points for end-to-end Standard Mail compared to the previous quarter (and nearly 13 points higher than the same period last year); Periodicals service continued a gradual improvement; and Package Services service performance continued to significantly improve.
• The Postal Service’s Innovation Symposium held this week in Washington, DC, was further testament that there is no shortage of ideas on how the Postal Service could grow revenue and volume. In just a few hours, hundreds of business customers were able to brainstorm and produce a slew of ideas on how the USPS could grow. Over 30 of the key ideas were presented to the Postmaster General and senior postal officials at the end of the symposium. While some of the ideas were not new, customers hope the USPS will look at them with the fresh eyes needed in a rapidly changing business and technology environment.
• USPS to delay loss of discount for IMb eDOC non-compliance. USPS publishes optional FSS preparation rules. Rumors of ADVANCE demise premature. Proposed 2011 MTAC meeting dates. More information from MTAC. USPS publishes Move Update Data Collection Report. The dance of legislation? Is the USPS really broke? Global Address Data Association up and running. Direct Mail Dead? Say it ain’t so. APWU urges members to support pre-funding reform.
• An update on DMM Advisories issues by the U.S. Postal Service.
• An update on postal rules and notices published in the Federal Register.
• An update on business before the Postal Regulatory Commission.
• An update from the USPS Office of Inspector General.
• A review of postal news from around the world.
• Postal previews.

The PostCom Bulletin is distributed via NetGram

At the Postal Regulatory Commission:

• R2010-4 Volume 3 - Official Transcript of Hearing Held on August 12, 2010 in Docket No. R2010-4 (pages 251-488)
  http://www.prc.gov/docs/69/69685/0812_PRC.pdf
• http://www.prc.gov/prc-docs/home/whatsnew/Hearing R2010-4 08-12-2010--1.mp3

According to the Courier, Express, and Postal Observer, "Now is the time to start contacting retailers before they realize how serious their need is likely to be. this is particularly true for smaller retailers that have the least sophisticated sales tracking systems that most major chains now have. Now is the time to develop ideas for using the mail to boost sales earlier in the season to reduce the risk that items in the supply chain from overseas suppliers will need to be sold at a large end-of-season discount and begin presenting these ideas to potential customers."

From GlobeNewswire: "SkyPostal Networks, Inc. has changed its name to SkyShop Logistics, Inc. to better reflect its positioning as a cross border shopping facilitator. Capitalizing on SkyPostal's efficient and low cost international delivery network, SkyShop has developed integrated shopping solutions which allow U.S. merchants to offer their international customers a simplified and cost effective buying experience from the moment of purchase to the cross-border delivery."

Channel Online has reported that "Jersey's branch of the Communication Workers Union are petitioning the States to stop proposed cuts to the island's postal service."

Inavate has reported that "Posten Norge, Norway’s postal service, has installed 1000 induction loop systems throughout its branches. It chose Ampetronic CLD1-CT counter systems as part of a wider programme of upgrades to its counters and retail furniture."

DM News has reported that "The US Postal Service needs to play in the digital world, major postal customers told the organization's executives August 11 at the USPS' Innovation Symposium. Attendees recommended the USPS offer electronic services similar to those of Deutsche Post, which is building a trusted platform for businesses and consumers to conduct electronic business. Other customers suggested the USPS offer a PayPal-type service, building off its reputation as a trusted brand to offer secure online bill presentation and payments. Others said the USPS should create secure e-mail addresses linked to physical addresses, which would open the door to a host of hybrid mail services."

American Banker has reported that "Israel Postal Company Ltd. plans to offer Visa debit cards in the first quarter of 2011, adding to its existing financial services operations."

Packaging Essentials has reported that "Printing Industries of America’s members from across the country are gathering on Capitol Hill next month to oppose an emergency postal rate hike proposal that would dramatically bust caps on postal rate increases imposed by Congress in 2006."

From Canada NewsWire: "Following an announcement by Canada Post that Israel Post has suspended mail delivery to Gaza, the union is encouraging people who wish to send mail to Gaza to get their mail onto the Canadian boat bound for the blockaded Palestinian territory."

WINK News has reported that "The US Postal Service may have fixed the absentee ballot envelope problem, but for now, all envelopes are being sorted by hand. The envelope barcodes were not being recognized by the sorting machine and being sent back to the return address. Post Office officials are in the process of redesigning the problem envelopes before the November election."

The Louisville Courier-Journal has reported that:

• UPS is launching a program that allows customers of participating retailers to return merchandise by dropping it in any U.S. Postal Service mailbox or at any post office in addition to thousands of UPS stores and drop boxes. After a return package is dropped off at a Postal Service location, a UPS driver picks it up and the UPS ground network transports it back to the retailer.

• The U.S. Postal Service announced Thursday that it is changing its policy that effectively banned cigarettes from being mailed to troops in Afghanistan and Iraq. The policy, which took effect at the end of June, was created in an effort to comply with a new federal law aimed at ensuring mail-order cigarette sellers pay taxes and don’t send them to minors.

New at the Postal Journal: "Rethinking the Mailbox Monopoly" By John S. White Executive Director, The Association Of Alternate Postal Systems
 

At the Postal Regulatory Commission:  The Postal Regulatory Commission invites press and interested parties to a briefing on the actuarial report of The Segal Company regarding calculation of U.S. Postal Service pension liability for former Post Office Department employees. Questions will be entertained following the briefing.

What: Public briefing on the actuarial analysis of liability related to funding of Postal Service pensions. The Commission report finds that an adjustment of roughly $50-$55 billion in favor of the Postal Service would be equitable.
Who: Commissioners and Commission staff The Segal Company representatives
When: 10:00 a.m. Monday, August 16, 2010
Where: Hearing Room, Postal Regulatory Commission, 901 New York Avenue, NW, Suite 200, Washington DC 20268

August 12, 2010

At the Postal Regulatory Commission:

• CP2010-84 Order No. 514 - Order Approving Six Additional Global Expedited Package Services 3 Negotiated Service Agreements
  http://www.prc.gov/docs/69/69671/Order514.doc
  http://www.prc.gov/docs/69/69671/Order514.pdf
• CP2010-85 Order No. 514 - Order Approving Six Additional Global Expedited Package Services 3 Negotiated Service Agreements
  http://www.prc.gov/docs/69/69671/Order514.doc
  http://www.prc.gov/docs/69/69671/Order514.pdf
• CP2010-86 Order No. 514 - Order Approving Six Additional Global Expedited Package Services 3 Negotiated Service Agreements
  http://www.prc.gov/docs/69/69671/Order514.doc
  http://www.prc.gov/docs/69/69671/Order514.pdf
• CP2010-87 Order No. 514 - Order Approving Six Additional Global Expedited Package Services 3 Negotiated Service Agreements
  http://www.prc.gov/docs/69/69671/Order514.doc
  http://www.prc.gov/docs/69/69671/Order514.pdf
• CP2010-88 Order No. 514 - Order Approving Six Additional Global Expedited Package Services 3 Negotiated Service Agreements
  http://www.prc.gov/docs/69/69671/Order514.doc
  http://www.prc.gov/docs/69/69671/Order514.pdf
• CP2010-89 Order No. 514 - Order Approving Six Additional Global Expedited Package Services 3 Negotiated Service Agreements
  http://www.prc.gov/docs/69/69671/Order514.doc
  http://www.prc.gov/docs/69/69671/Order514.pdf
   

• The transcript for the 1^st day of Hearings on R2010-4 http://www.prc.gov/Docs/69/69643/100810_web.pdf

• The transcript for 2nd day of Exigency Case Hearings http://www.prc.gov/Docs/69/69672/PRC_081110.pdf

FROM TODAY'S HEARING AT THE PRC ON DOCKET R2010-4.

Witness: Frank Neri, USPS (regarding the USPS Flats Strategy)

• The USPS has no projections on savings for FY2011 that will come from its FSS program.
• The flats strategy (as a whole) is still under consideration by Postal Service engineers. There has been no determination thus far that its flats strategy merits moving forward.
• The Postal Service provided no estimates of cost savings from the flats strategy or when they would be actualized.
• There's no decision analysis report yet for reconfigured package and bundle sorters.
• Ultimately, decisions as to when to run periodicals on automation are made by local facility managers.
• There's a whole lot of "expectations" by management that may not be actualized in facilities that are provided considerable operational discretion.
• Witness Neri, who is in charge of overseeing FSS operations, has not yet read completely the OIG study which concluded that the FSS program may be not cost justified.
• Commissioner Acton and the Chairman felt compelled to recommend that Witness Neri take the time to review the OIG study.
• Neri said that he has been aware for about ten years that the USPS was having cost-efficiency problems with the processing of periodicals and non-carrier route Standard flats.
• Neri said he does not know whether any of the programs or concepts that currently under focus by the Postal Service will lead to any real measurable savings.
• Chairman Goldway said that there did not appear to be any projected savings associated with the Postal Service's planned strategies.
• Commissioner Blair said he could not discern anything from what the Postal Service has offered that indicates that there is a clear link between the flats program's success or lack of success and its budget allocations.
• Neri said he could not today say definitively whether the flats program was achieving hoped-for savings.
• Neri said that the Postal Service's decision to pay for all 100 FSS machines even though the final determination on savings that could come from the program was due to "contractual procurement obligations."

Witness: James M. Kiefer, Pricing Economist, USPS

• Pricing decisions in this case were developed under "tight guidance" provided by the very top of the Postal Service. There were specific "management directives."
• Most products were to be set around the 5.6% average. Periodicals were to be kept within 10%. Standard parcels were allowed to rise above 20%.

House postal subcommittee chairman Stephen Lynch told Wicked Local that "he’s opposed to the Postmaster General’s plan to save money by eliminating Saturday delivery. He favored closing some post offices to cut costs instead. Another way to save money would be a online program to let citizens choose which mail gets physically delivered to their homes. “You go on your computer and look at your mail, and you click on what you don’t want delivered,” Lynch said. “That’s the wave of the future.”

InTheseTimes has a story on "USPS to Struggling Publications: Take a Hike." It said that "a familiar foe is once again threatening the future of many U.S. magazines and newspapers—and it’s not the Internet. The U.S. Postal Service’s recent proposal to hike postal rates has print publications even more worried about their future.

If you're one of those who think the future of ink on paper is bleak, then you've got to take a look at Timothy McSweeney's evaluation of the printed newspaper as an e-reader.

Stuff.co.nz has reported that "A dispute over a Wellington postie's insistence on wearing a blue T-shirt under his uniform has brought NZ Post's uniform policy under question. The Employment Relations Authority (ERA) has criticised New Zealand Post for giving postie Karl Oakes an unjustified written warning after a tiff over a blue sweatshirt and T-shirt he wore while on his rounds. Mr Oakes succeeded in getting a black mark removed from his work record but his behaviour was seen as confrontational by the ERA. He first had a run-in at work because he wanted to wear a blue hoodie instead of the postie uniform." [EdNote: Oh, the "stuff" we worry about.]

Azerbaijan Business Center has reported that "The State Program for Development of Communications & Information Technologies 2010-12 (Electronic Azerbaijan) endorsed yesterday by the relevant order of Azerbaijani President Ilham Aliyev says of drastic change in quality of Internet network and telecommunication services in the country. Under the Program, the Ministry of Communications & Information Technologies will take measures on introduction of wideband Internet services will be taken in Azerbaijan in 2010-12. At that, the Program stipulates plans on introduction of universal postal services in the country, upgrade of communication network in the Nakhchivan Autonomous Republic, improvement of services on the basis of modern information technologies."

The Washington Post has published a fine piece on the late senator from Alaska, Ted Stevens, who for years was widely recognized as a force with which one had to be prepared to reckon when it came to postal policy in America.

Dead Tree Edition has told its readers that "The U.S. Postal Service proved this week what mailers have been saying for weeks -- that it is seeking exigent rate increases without first having done everything it can to reduce costs. Specifically, it demonstrated that it still has excess career employees – many of whom are eligible for retirement – yet is doing nothing to reduce those numbers. Before the Postal Service is granted rate increases that require bending, if not breaking, the law that governs postal rates, postal executives need to explain why they are discouraging employees from retiring when they should be encouraging early retirement."

Editor's Note: When it comes to envisioning the role a postal system in the 21st century, there are some who can forsee ways to use more creatively the assets that already are a part of the American postal system. We commend the following paper to you for your review. "Offering Sensor Network Services Using the Postal Delivery Vehicle Fleet" by  Michael J. Ravnitzky. Mr. Ravnitsky serves on the Postal Regulatory Commisson staff. There are slides that accompany this paper, and they can be found on the Postal Regulatory Commission web site.

The Pakistan Observer has reported that "The Public Accounts Committee (PAC) on Wednesday directed the government to approve computerization project of Pakistan Post (PP) to check cases of financial irregularities."

KETK has reported that "The U.S. Postal Service says it recently lost $3.5 billion. Now, they are doing studies across the nation to see which offices they can consolidate to save money. As a result, the downtown post office in Tyler may close. Tyler citizens gather downtown today as they rally to save the post office. As they sign petitions and wave signs, people give several reasons to keep the office open. Several businesses say they rely on the office, and most agree that having a post office downtown is convenient. One person says the other post offices are already congested enough."

The Postal Service™ is revising the Mailing Standards of the United States Postal Service, Domestic Mail Manual (DMM®) to provide optional mail preparation standards for flat-size Standard Mail, Periodicals, and Bound Printed Matter mailpieces prepared for delivery within ZIP® Codes served by Flats Sequencing System (FSS) processing. DATES: Effective January 2, 2011.

The New York Times has reported that "A small group of former magazine journalists and editors, including a former president of Newsweek, plan to publish a weekly digital magazine this fall, seeking to create content specifically for mobile technology. The magazine, called Nomad Editions and created by a New York start-up of the same name, will feature the work of freelance journalists with expertise in a specific area, like surfing or movies. Every Friday, starting in October, subscribers will receive through a mobile application what amounts to a mini-magazine, focused on their area of interest. Each edition is expected to each take 20 to 30 minutes to read."

Media Daily News has reported that "U.S. media and communications spending is poised for big growth from 2009-2014, according to a new forecast from Veronis Suhler Stevenson, a private-equity firm in the media business. In fact, VSS expects media and communications revenue to grow faster than the economy in general, due largely to the rapid expansion of Internet and mobile media. However, VSS draws an important distinction between media and communications revenues overall, and advertising revenue in particular, predicting significantly lower growth in ad spending. DM News noted further that "direct marketing spending and revenue will experience slower growth than other communications sectors." Among the significant adverse factors: the prospect of higher postal rates and postal service cutbacks."

Canada Views has reported that "Congressman Maurice Hinchey (D-NY) today called on the Untied States Postal Service (USPS) to enter into an agreement with a willing landholder and take necessary steps to ensure funding is in place to begin site development for a new post office in Willow, New York. The current postal facility, which has been housed in a trailer on a rental property for nearly 10 years, must be removed to accommodate the needs of the private property owner. The current location also fails to comply with USPS workplace and Americans with Disabilities Act (ADA) standards. "

The Star-Telegram has reported that "More letters containing white powder are expected to arrive in the mail this week at various locations in North Texas, an FBI official said Tuesday. Two of them were delivered Tuesday in the region, increasing the total to 21 in the last four days, the FBI said Tuesday. Field tests have indicated that the letters contained cornstarch, according to FBI reports. According to the FBI, they were sent to five churches, two mosques, 13 businesses and one residence. Local hazardous-materials teams have been sent to handle and analyze the letters, authorities said. The FBI and U.S. postal inspectors are leading the investigation, with help from local law enforcement agencies."

Automated Trader has reported that "Austrian postal service provider Oesterreichische Post AG, or Austrian Post (POST.VI), said Wednesday its second-quarter 2010 net profit fell 8.4% in spite of higher sales and core earnings, as it was dragged down by a higher tax rate. The majority state-owned postal firm reiterated it expects full-year sales to decline by 1% to 2%, as the general migration from letters to electronic post continues to cut into handled domestic volumes, and the margin on earnings before interest, tax, depreciation and amortization, or Ebitda, to come in between 10% and 12%."

China Radio International has reported that "China Post on Tuesday formed a partnership with Internet company Tom Group to jointly launch an online shopping website, in an effort to cash in on the nation's booming e-commerce industry. The new online platform, Ule.com.cn, will be 51 percent owned by China Post. Tom Group will be the exclusive IT systems provider for the business and will invest an additional 200 million yuan ($29.53 million) to market the new website. China Post is a fully owned company of China's State Post Bureau. It has 46,000 post offices and nearly 36,000 postal savings bank branches." See also People's Daily.

The Wall Street Journal has reported that "The U.K. government Wednesday said it has appointed investment bank UBS AG (UBS) to advise it on options for the future ownership of Royal Mail, Britain's state-run postal delivery service."

Postal news from Hellmail:

• Zumbox Announces Mailfeed HVTO Partner Program
• OPEX Releases New Document Capture Platform With Integrated Extraction
• Value Your Mail
• Document Specialist Transactis Secures Avis Europe Contract

According to D. Eadward Tree, "Most of what’s wrong with the Postal Service is the fault of Congress. Congress has been bleeding billions of dollars annually from the supposedly independent and self-sustaining Postal Service in the form of overpayments for retiree health benefits and pensions. It also blocks reasonable efforts to close obsolete post offices and to streamline the organization. That being said, as a “print guy” in the magazine industry, the Postal Service often seems like the main foe. Through mismanagement and bad cost accounting, it has made the Periodicals class look like a big money loser that should get huge rate increases. Perhaps postal executives are bluffing and just making publishers the focus of a “Washington Monument strategy.” But they are still making publishing companies even more nervous about their reliance on the Postal Service, which is causing all of the publishing industry’s product-development resources to go to non-postal products — such as Web sites, apps, and printed publications that can be distributed solely through newsstands and alternative-delivery vendors." [EdNote: Unfortunately, instead of merely shooting itself in the foot, it's shooting customers in the head. It's time to bring the madness to an end.]

August 10, 2010

From the NALC Convention: "“NALC President Rolando’s job now includes saving the Service from its own shortsighted arrogance. This union will be ready to push, prod and kick the Postal Service to do the right thing.”

According to The Motley Fool, "As if financial reform hasn't given credit and debit card companies enough to worry about, they must now grapple with an entirely new threat. The billion plastic payment cards we carry may soon be obsolete, their functions incorporated into cell phones."

The Associated Press has reported that "Netflix Inc. will pay nearly $1 billion during the next five years for the online streaming rights to movies from Paramount, Lionsgate and MGM in a deal that could help Netflix attract even more subscribers. The agreement announced Tuesday marks another breakthrough in Netflix's bid to stock its online streaming library with more compelling material, so it can keep its subscription service relevant as more households order entertainment through high-speed Internet connections. The online streaming push also helps the company reduce its postage bill for mailing DVDs to its 15 million subscribers."

At the Postal Regulatory Commission:  

A recording of this hearing has been posted on the PRC web site.

• USPS CFO Joseph Corbett has testifed before the Postal Regulatory Commission that, even if the Postal Service receives the billions of relief it is seeking from Congress, the Postal Service says it still needs a greater-than-inflation postal rate increase in order to survive. [EdNote: If this is true, the USPS as an institution is moribund. There is no way it can survive in its current guise. As they would say in German "das ende."]
• Former PRC chairman Blair told Corbett that it seems as if he's laying a foundation for the argument that even more future exigent rate increases will be needed.
• Corbett said the USPS expects continuing mail declines, but could offer no insight as to how the Postal Service would raise the needed revenue to stay viable. The USPS would continue to bet its future on cost-cutting. Short of that, he said he really had no idea as to what more the Postal Service would do.
• Corbett said that the total dollars that could be saved by closings and consolidations would be relatively modest when figured annually. [EdNote: In short, the only pot of gold at the end of the Postal Service's rainbow is the additional rate increases it could wring from customers. So much for the prospect for any future mail volume growth.]
• Commissioner Langley noted that it is a matter of direct testimony before the PRC that the National Association of Letter Carriers had offered the Postal Service the opportunity to negotiate a separate delivery force to be used on Saturdays and that the Postal Service had turned down the offer.
• In response to a question posed by Commissioner Dan Blair regarding the letter submitted by Senator Susan Collins, Corbett said "How someone outside the organization who spends a couple of hours a month on this would have any clue I have no idea."
• CP2010-78 Order No. 512-Order Approving Six Additional Global Expedited Package Services 3 Negotiated Service Agreements
  http://www.prc.gov/docs/69/69619/Order512.pdf
  http://www.prc.gov/docs/69/69619/Order512.doc
• USPS Preliminary Financial Information (unaudited), June, 2010
  http://www.prc.gov/docs/69/69633/Letter-PrelimFinInfo-June2010.pdf
  http://www.prc.gov/docs/69/69633/JUN-10_PRC_-_Final.pdf

Advertising Age has reported that "Time Warner today made it official: Jack Griffin, the well-regarded former Meredith executive, will succeed Anne Moore as CEO of its Time Inc. magazines division at the end of September."

Postal news from Postal Technology International:

Australia Post fair work agreement finalised
An Post appoints Prime Vision
SNP request UK government reveals privatisation plans

From the Philadephia Daily News:

• As President of the Philadelphia-area local of the American Postal Workers Union (which represents the sales and service associates with whom the public comes in contact with every day), I totally agree with columnist Stu Bykofsky when he said that Benjamin Franklin would be ashamed at what transpired during his recent encounter with the Post Office. But I don't think he'd be ashamed of the Post Office - he'd be ashamed of how management is running it now.

• Although the Postal Service has nominal authority over closures, Congress ultimately decides which facilities will stay and which go. Lawmakers have also introduced legislation that would raise the bar for closures by expanding comment periods, requiring impact studies and encouraging customers to appeal. Members of Congress may believe they're protecting their constituents' interests by obstructing the closure of offices in their district, but as the USPS points out in its Action Plan for the Future, "postal consumers are ultimately required to absorb the costs of political decisions that keep redundant facilities open."

UPS has filed its 10-Q.

According to Reliable Plant, "The U.S. Department of Labor's Occupational Safety and Health Administration has cited the U.S. Postal Service for alleged willful and serious violations of safety standards following an inspection at the Boston Processing and Distribution Center. The Postal Service faces a total of $357,000 in fines, chiefly for exposing workers to electrical hazards."

Express India has reported that "The Tax Assessment & Collection department of BMC will employ private courier services and not the India Post as usual to deliver bills, which would translate into an estimated loss of Rs 78 lakh for the postal department. Calling the India Post services ‘unstaisfactory’, the tax Assesment & Collection department has roped in four private companies to deliver the property tax bills and all other correspondence to citizens."

The Courier, Express, and Postal Observer wants to know: "Is the Postal Service facing bankruptcy?"

The inquiring mind at the Courier, Express, and Postal Observer has asked the question just about everyone else is asking: why are the Postal Service's finances worse than expected?"

DMM Advisory:  IMb™ Services Update. Guides and Specifications Updates: A Guide to Customer Supplier Agreements (CSAs) has been updated. Version 4.5 of the guide has been posted to the RIBBS^® website.  FAST Release 14.3.0 and Scheduled Outages (August 15-16, 2010): FAST^® Release 14.3.0 will deploy to the production environment on Sunday, August 15, 2010. Updated release notes for FAST 14.3.0 are available on RIBBS>Site Index A-Z>FAST/Surface Visibility>Important Links>FAST Release Notes. The FAST production system will not be available from 4 a.m. through 8 a.m. (CDT) on Sunday, August 15, 2010. FAST Release 14.3.0 will deploy to the Test Environment for Mailers (TEM) on Monday, August 16, 2010. The FAST TEM system will not be available from 8 a.m. through 12 Noon (CDT) on Monday, August 16, 2010. Customers experiencing problems related to CSAs should contact the PostalOne!^®/FAST Help Desk via 1-800-522-9085 or FAST@usps.com for assistance. The Help Desk will activate a remedy ticket and submit it to the CSA Remedy Team.

The Affordable Mail Alliance today responded to the United States Postal Services’ earnings report. The report contends that the USPS will not have the capital to continue operations into FY 2011. This claim is false. As the Postal Service said just a month ago in its rate filing, even after making this year’s Retiree Health Benefit payment, USPS will end FY 2010 with $1.3 billion in cash. Further, on October 1, the first day of FY 2011, the USPS will have access to another $1.8 billon. In addition, a potential shortfall could be eliminated by waiving either the FY 2010 or FY 2011 Retiree Health Benefit payment of $5.5 billion.  “We’re saddened to see these dubious claims by the Postal Service and would hope for a more constructive dialogue with customers instead of misleading public statements,” Tony Conway, Affordable Mail Alliance Spokesperson and Executive Director of the Alliance of Nonprofit Mailers. “Unfortunately, the Postal Service seems to be attempting to justify their proposed rate hikes of ten times the rate of inflation – a move that would drive away more consumers and worsen the financial situation they’re highlighting in this report.”