Joe Schick
Director of Postal Affairs

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Sausage Making 101

Thursday 4/26/2012

Who would have thought that CSPAN would be appointment TV? But that's the case this week as the Senate finished debating, and ultimately passed, S. 1789 (21st Century Postal Service Act of 2012),  bipartisan (really!) legislation intended to ensure the future viability of the USPS.

While we do support this legislation, it is not perfect and doesn't go far enough for the long term. However, it is a start and would give the Postal Service time to make some of the changes they have been asking for, hopefully helping lead to financial stability. The legislative process needs momentum, and most in the mailing industry are willing to accept a moderate proposal at this time with the hope that something more substantive can be developed later in the legislative process.

As anyone who watched School House Rock knows, it takes more than a bill passed through the Senate to become law. Let's review: http://www.youtube.com/watch?feature=player_detailpage&v=H-eYBZFEzf8

The House of Representatives must pass postal legislation as well, and if not exactly the same as the Senate, a Conference Committee is formed to create a single bill. That bill is then voted on by both the Senate and the House, and if passed, goes to the President for his signature.

Needless to say, there is still more work to be done. Quad and the mailing industry have been working to ensure that the final bill coming out of the Senate and/or the House provides opportunities for the Postal Service to manage healthcare and retirement costs; right-size the network and employee compliment in a manner that is the least disruptive to postal employees, states and local communities; and allows for a new USPS business model to be implemented.

At the same time, a clear message has been sent that our industry is not in a position to absorb higher-than-CPI price increases, which in some Congressional minds is the way to resolve all that ails the USPS. We all know that raising prices in a still-struggling economy would not increase postal revenue, but instead would drive more volume and business away from the Postal Service, adding to the downward spiral. Thankfully, it appears as though our message has been received and understood.

Now that S. 1789 has made its way through the Senate, we're left to watch what the House of Representatives does. There is legislation that has been passed through Committee – H.R. 2309 (Postal Reform Act of 2011). However, as it stands right now, it’s a safe bet that no action on that bill will take place until after the November elections … maybe in a Lame Duck session of Congress?

Let's hope that the House of Representatives surprises all of us and decides to quit playing politics and do their job. The uncertainty surrounding the Postal Service's financial position has and will continue to hamstring our industry. That's the message that should be sent to all members of Congress.