October 15, 2015

Over the past five years, USPS management has made multiple attempts—at the regulator, at the federal appeals court, and in Congress—to price well above the rate of inflation because it lost volume during the 2007-2009 recession. U.S. Postal Service leaders need to know that this is more than an academic exercise. It is anathema to retaining existing mail customers.

Most USPS customers lost volume and revenue in the recession. Most customers cut budgets and reduced staffing. Many laid off or fired workers, including unionized employees. These customers are wondering why the USPS believes it requires a permanent, government-mandated surcharge on its existing customers. Customers also wonder why the USPS does not accept the due process of the regulator and the appeals court that the law prescribes. Instead, the USPS seeks legislation that would overrule the legal due process it is supposed to live by.

The exigent campaign says to customers: we don’t want your business, except by monopoly and legal/legislative mandate. It is tantamount to telling employees: we’re going to break our contract with you, overruling collective bargaining, and cut your pay by 4.3 percent.