LEGISLATIVE UPDATE: POSTAL REFORM!

PIA/SD and others in the communications industries are very concerned about the harm that could be done to our industries and the economy if Congress fails to address the problems facing the USPS.

Congress must pass postal reform legislation in 2011. This legislation is critical to the health of millions like it in the U.S. We are part of a mailing industry that contributes nearly one trillion dollars to the economy and employs over nine million people. Over one million of those jobs are in California.

While the Postal Service is an important part of our industry, it is crucial for businesses and individuals who rely on USPS to deliver a wide range of products including bills statements, invoices, insurance information, periodicals, greeting cards, prescriptions and advertising for large and small businesses.

The Postal Service is a user fee based system. Except for a very small amount of appropriation for services mandated by Congress, USPS is funded by postage and 90 percent of that postage comes from commercial sources. Action is needed to insure the viability of the Postal Service.

Key elements to consider in any postal legislation include:

• In 2006 congress mandated that the USPS pre-fund its retiree medical system on an accelerated schedule. Those payments exceed $5 billion per year for a ten year period that began in 2007. In the severe recession we have faced, these payments have assured the USPS incurs annual deficits.
• In 2010, two independent actuarial studies showed that the portion of federal retirement attributed to postal employees is over funded by between $50 and $75 billion.
• The USPS will not be able to make its scheduled retiree medical payment this year and will literally run out of cash before the end of the year if no action is taken.
• If the USPS collapses, the impact on the mailing industry will be severe. This industry includes paper, printing, mail service, equipment manufacturers, software developers, internet sales, publishers, greeting card manufactures and the millions of businesses that rely on mail to communicate with customers and potential customers.
• If Congress takes no action and the USPS collapses, the taxpayer will be obligated for the entire failure of the system since previous Congresses guaranteed all of the retirement benefits of postal employees.
• Congress created the Postal Service as an independent federal service forty years ago. At the same time, it created an arbitration system that compromises the ability of the USPS to reduce labor costs, limits the ability of the USPS to close and consolidate facilities while requiring universal service six days per week.

Legislation is pending in the House and Senate to address many of these critical issues. PIA/SD is currently working on a strategy to mobilize the print, mail and communication industries. Below you will find the next steps you can take to impact postal reform.

PIA/SD members and staff recently met with Congressman's Issa's office on this important issue. Our groups have gotten together to create a postion statement that offers short term suggestions to restore fairness to USPS obligations and long term suggestions to create a modern, more efficient USPS. You can download PIA/SD's position statement here.

Also download PIA CEO, Michael Makin's letter to the Postmaster General Patrick Donohoe.

We need your help to bring this issue to the attention of our elected leaders. We need you to urge your customers, and urge your employees to write about preserving jobs in this industry by cutting costs rather than raising postal rates.

The quickest and easiest way is to go to www.capwiz.com/printing where you can simply input your zip code and the district contact match for both federal and state elected officials will display. Simply copy the letters below and paste into the body of the form. Hit send and your email will be sent. We also encourage you to copy the letters below on your letterhead, sign and send in the mail.