Release No. 06-6                                     September 8, 2006

Contact:        Robert E. McLean

                    bmclean@mailers.org

                    703-418-0390

Mailers Council Asks Congress to Let the Postal Service Manage Its Operations to Ensure Affordable Postage

WASHINGTON, DC, September 8, 2006— In letters to every member of the House and Senate, the Mailers Council today asked Congress to oppose any legislation that would prevent the Postal Service from closing outdated and inefficient mail processing facilities in its campaign to keep postage affordable despite continuing declines in mail volume.

Mailers Council Executive Director Robert E. McLean notes in the letter that the Postal Service is coping with lower First-Class mail volume, which contributes more than half of postal revenue, at the same time that fuel costs and employee wages are increasing. This September the Postal Service must also contribute $3.1 billion into a congressionally mandated escrow account—the primary reason why postage rates will increase an average of 8.5% next year.

To reduce its costs the Postal Service has already eliminated nearly 100,000 jobs—without laying off one employee. Eliminating excess capacity in its mail processing system is the next step in the campaign to reduce costs. The Council believes that Congress must “let the Postal Service continue with its plans to consolidate unnecessary and outdated facilities. Such closings are the only way we can retain affordable postal service in this country.”

Some postal employee groups have predicted service declines if facilities are consolidated. However, McLean notes in the letter that although mailers share such concerns, they believe that service disruptions would be limited and temporary.

The United States Postal Service is the focus of the $9 billion mailing industry that supports more than 9 million jobs. It maintains 37,000 post offices and 450 mail processing facilities that collectively employ more than 704,000 individuals in every state in the country.

“Postmaster General Jack Potter has assured us that he is committed to cutting costs without reducing service to postal customers and is working with the Council to identify and resolve any service problems caused by plant consolidations. We believe Congress should allow the Postal Service to manage its operations—as was intended with passage of the 1970 Postal Reform Act that created the independent Postal Service.”

The Mailers Council is a coalition of corporations, nonprofit organizations and major mailing associations. Collectively the Council accounts for 70 percent of the nation's mail volume. The Mailers Council believes that the USPS can be operated more efficiently, supports efforts aimed at lowering postal costs, and has the ultimate objective of containing postal rates without compromising service.

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