Commercial mail producers and others whose businesses have regular contact with postal services may be aware of a price increase but not really understand why it happens or what it means.  As we did last year, in an attempt to offer answers, below are some of the questions that commercial mail producers and their clients may have.

Price changes generally

Commercial mail producers continue to express concerns that, despite having protocols to screen visitors for virus exposure, postal employees coming into their facilities to work at detached mail units refuse to comply, often citing instructions from their union (the American Postal Workers Union).

As much as such a position may seem counterintuitive and potentially dangerous, it appears that the Postal Service sanctioned it in a policy statement issued last spring.  The April 1 Industry Alert itself (below) offered no explanation for the agency’s refusal to cooperate with screening practices, instead referring to a Q&A document (Coronavirus Updates for Business Customers).  Although that cited document referred to letter carriers, the same policy presumably was applied to all craft employees:

A commentary in the August 3 issue of Mailers Hub News opined on the Postal Service’s failure to offer meaningful communication during times when the popular media is regularly publicizing rumors, leaked documents, and union allegations about what’s going on in the agency.  In concluding that commentary, we urged the USPS to provide accurate and timely information before other parties told their story first.  Similar messages for better communication by the Postal Service came from others in the mailing industry before and since that commentary was published.

From all appearances, the urging has had little effect, and the consequences of the Postal Service’s silence continue.

The possibility of Postal Service price changes was usually an issue discussed only within the mailing industry, but the politicization of the agency over vote-by-mail and other matters has resulted in postal news appearing in the general media.  However, this phenomenon has resulted in articles being published that are based on incomplete information, rumors, or speculation, derived from “unnamed” or unofficial sources, and produced by writers inexperienced in dealing with the arcane world of the USPS.

Changes ahead

As has become all too apparent in the popular media, the viability of widespread voting by mail, and the Postal Service’s ability to timely process and deliver the associated volume, have become intertwined with other political controversies.

On one side, notably by the White House, vote-by-mail is portrayed as flawed or corrupt, and that regardless of its use, the Postal Service isn’t capable of handling the volume.  Concurrently, for that and other reasons, the administration is continuing its spiteful objection to any funds for the USPS being included in a COVID-related relief bill.

There was a TV quiz show in the late ‘50s and early ‘60s with the grammatically incorrect title Who Do You Trust?  (The show became the springboard for Johnny Carson and Ed McMahon, who later spent the next three decades together as fixtures on late-night TV.)  The premise was simple: three couples would appear on the program, and Carson would ask the male a question and he’d have to decide whether to answer it himself or ask the female contestant.  (Attitudes toward gender roles were different back then.)

Though that format may not be applicable in today’s postal world, the title question is very relevant.

Changes to mail processing and delivery procedures being adopted by the Postal Service have been met with criticism in the general media.  News articles frequently cite customer and labor union concerns over delays in mail delivery and fault the USPS for placing budgets ahead of service.

Many examples

The current level of negative publicity about the Postal Service – notably for slow or infrequent delivery, the impact of reported changes in mail processing and delivery procedures, and the potential consequences of these changes on election mail – might not have to be what it is if the USPS simply were more communicative.

Institutional Reticence

As if to illustrate that running the Postal Service as Postmaster General isn’t like running a corporation as its CEO, Senator Gary Peters (MI), ranking member of the Senate Homeland Security and Governmental Affairs Committee, wrote PMG Louis DeJoy on July 17 asking for “information about operational changes at the US Postal Service that have the potential to affect the quality of service for Americans.”

Peters’ letter was inspired by the reports of plans to modify delivery procedures that were contained in a PowerPoint leaked by a USPS manager in Ohio and other documents. (For more on this, see the July 25 post.)

When the new Postmaster General took office last month, it was widely assumed that he would make significant changes, though the nature of what those changes would be was then no more than speculation.  However, if the information in a leaked PowerPoint presentation that appeared on postalnews.com last week is credible, change may be starting and is focused on cost reduction.

Quick reference links: "The Source", "Document Two", "Publicity", "Another Talk" 

The 400-year-old Scottish proverb used for the title simply translates into how easily things could be attained if nothing more than wishing for them were needed to make them real.

That adage was brought to mind when reading the documents discussed in the preceding articles of the July 20 issue of Mailers Hub News.  Assuming they’re legitimate, they first reveal a determination to act to reduce costs, the need for which cannot be disputed. However, at the same time, they also reflect not only an attitude that whatever is needed or desired will be made real by simply commanding it, but – of greater concern – a misunderstanding of the people to whom the order is being given.

Today's commentary was contributed by Scorecard expert, Mailers Hub webinar presenter, and all-around industry guru, Tom Glassman. 

When a new leader is appointed to any significant government entity, it’s not unusual for groups to contact that individual to urge action on the writers’ key issues.  So it was when Tom Schatz, president of Citizens Against Government Waste, a conservative DC think tank, wrote on June 19 to new Postmaster General Louis DeJoy, urging DeJoy to take his recommendations on topics of interest to that group.

In the latest installment in what’s become a years-long rulemaking by the Postal Regulatory Commission, a trio of industry associations has asked the PRC to delete a provision of its most recent proposal.

A brief recap

In its May financial data (see the article on page 8), the Postal Service reported mail processing costs that were 8% over plan and workhours that exceeded plan by 8.5%.  The agency commonly attributes this situation to the workload associated with higher parcel volume.  However, while it’s reasonable that more work hours are needed to handle surging parcel volume, there’s been no indication whether the USPS is concurrently capturing workhour savings because of greatly decreased letter and flat mail volume.

Last Tuesday, June 16, Louis DeJoy was sworn in as the 75^th Postmaster General. Since his May 6 appointment by the Postal Service’s Board of Governors he’d spend weeks working with retiring PMG Megan Brennan, getting briefed on the agency he would be leading. Now the job was his.

Thanks and greetings

Just last month – on May 1 – the Postal Service filed a request with the Postal Regulatory Commission seeking to delete Customized Postage as a service.  Among the reasons it offered was that “the eligibility criteria have become the source of customer complaints and the subject of legal disputes.”  (Authorized Customized Postage vendors are required to apply criteria “to ensure that the types of content included in customized postage are appropriate in light of the purposes of the program and the potential audiences, in order to safeguard the Postal Service’s legal, financial, and brand interests.”)

In that filing, it didn’t mention that, as if to support its statement, it was in court at that time with a customer whose design had been rejected.

Last April, the Postal Service, and its commercial customers feared the decline in mail volume driven by pandemic-related business shutdowns would turn into a freefall.  Early in that month, the agency shared initial volume and revenue projections with members of the House and Senate committees having postal oversight responsibilities.

Billions in losses

According to Google Maps, someone driving from Inglewood (CA) to Ft Myers (FL) at a steady 70 miles per hour would need 38 hours to complete the 2,659-mile trip.

Of course, in the world of commercial shipping, an item being sent from Inglewood to Ft Myers wouldn’t travel like that, instead taking a slower, likely longer route, perhaps through intermediate transfer points along the way.

The article below was produced by Merry Law, Mailers Hub’s expert, and consultant on international mail. Merry may be reached at [email protected].

COVID-19 closures, lack of transport capacity, self-declared inbound rates, expiring USPS consolidator contracts, no bilateral agreements with other countries: Taking this a piece at a time can make sense of what is happening, who it affects and how. Let’s start with the more temporary effects of the current pandemic crisis and move on to the longer-term matters.