July 29, 2009
The
following amendments were adopted to S. 1507 Postal Service Retiree Health
Benefits Funding Reform Act of 2009 on July 29, 2009 at the Senate Committee
on Homeland Security & Government Affairs bill mark-up business meeting.
- Coburn # 1 Would require any binding arbitration in the negotiation
of postal contracts to take the financial health of the Postal Service
into account.
- Coburn #3 Would prohibit the Postal Service from issuing bonuses in
any year that it reports a yearend net loss.
- Collins #2 Would require GAO to expedite the reporting requirements
for its study of USPS's options and strategies for the long-term
structural and operational USPS reforms. The Postal Enhancement and
Accountability Act of 2006 requires that GAO conduct this study by 2011.
This amendment would require that the study be complete by March 31,
2010, so that USPS can benefit from this study sooner.
- Collins #3 Would limit USPS's total outstanding debt to $15 billion,
as required under current law. The underlying bill would allow USPS to
borrow an additional $2 billion in fiscal years 2009 and 2010 (increases
annual borrowing from $3 billion to $5 billion), but exempts the $2
billion from being applied to USPS's total debt ceiling of $15 billion.
This amendment would require that any additional amount of the
additional $2 billion USPS borrows apply to the $15 billion debt
ceiling.
The
American Postal Workers Union (APWU) has told its members that
"amendments to a Senate bill providing short-term temporary financial relief
to the USPS would weaken the legislation, harm the Postal Service, and hurt
postal workers, APWU Legislative and Political Director Myke Reid said. He
urged union members to contact their senators if they serve on the Senate
Committee on Homeland Security and Governmental Affairs and ask them to
reject the amendments. Amendments offered by
Sen. Tom Coburn (R-OK) and Sen. Susan Collins (R-ME) would require
arbitrators to consider the financial health of the USPS when ruling on
collective bargaining agreements,
and an amendment submitted by
Sen. John McCain (R-AZ) would increase the share postal employees pay for
healthcare coverage. An amendment
submitted by
Sen. Coburn would repeal the requirement in appropriations law that
requires the USPS to deliver mail six days per week.
A total of 11 amendments were submitted as of the deadline for submissions,
but additional amendments could be offered when the committee meets on July
29 to vote on the bill, Reid said. A summary of the amendments can be found
on the
APWU web site.
The
Connexion has reported that "unions have promised to fight the
privatisation of La Poste after the cabinet met this morning to discuss the
procedure. The first stage, the transformation of the group into a 'société
anonyme', was put on hold last November as the government dealt with the
financial crisis."
The
Washington Post has reported that "it looks as if the U.S. Postal
Service is getting its bailout. The House Oversight and Government Reform
Committee has advanced legislation to relax the Postal Service's obligation
to prepay its employee retirement benefits, an action that would save it an
estimated $2 billion annually. But even this may not be enough to save mail
service as we know it....The USPS's own proposed remedy for its fiscal woes
involves limiting its universal service obligation to five days of delivery
a week. Shocking as this change may sound, the requirement to deliver mail
six days a week dates back only to the early 1980s; this does not have to
remain the model. As people depend less and less on mail for their critical
communications, even five days may not be the most efficient delivery level.
Changing the USPS's costly obligations must also mean
reconsidering its lucrative monopoly on mail delivery, which no longer
makes sense.
The Postal Service's status must be adjusted to fit its changing role in
communications. Otherwise, this bailout will not be the last."
CEP News (Courier-Express-Postal), published by the MRU Consultancy, has reported that:
Thanks to drastic savings, Deutsche Post managed to stay in the profit
zone in the first half of the year.
The economic crisis is further afflicting TNT.
Slight turnover decrease and profit collapse have characterised business
for the Finnish post Itella in the first half of 2009.
The Austrian minister of infrastructure, Doris Bures now plans to
enforce the new postal act before the summer break after all.
Sweden plans to enforce the general VAT liability for mail services in
the Community during its presidency of the council of the European
Union.
The Norwegian department of transport has instructed the national
Institute for Research in Economics and Business Administration (SNF) to
compile an additional report on the potential consequences of opening up
the postal market.
The China Post Group’s company performance continued to improve in June.
During the half-year press conference, Deutsche Post confirmed plans for
its so-called online letter. The service hardly differs from
conventional e-mailing. Nonetheless, receivers only receive post from
identified senders, thus avoiding spam mail. Meanwhile, postal
businesses in other countries are choosing different directions when it
comes to electronic services. For example, Schweizerische Post has been
providing its Swiss Post Box since mid-June, which allows customers in
Switzerland and Germany to have physical mail sent to them in digital
form. And the Finnish post Itella (NetPosti), as well as Post Danmark
(eBoks), have long since established so-called portal solutions, which
allows customers not only to receive mail, bills and offers
electronically, but at the same time also to arrange the payment of
bills.
Lietuvos Pastas, the Lithuanian post, has issued an international bid to
tender to find an investor with which it can develop and offer financial
services.
Employees of the Brazilian ECT demonstrated in the centre of Rio de
Janeiro against the privatisation of the post.
The French CEP market regressed significantly in the first quarter.
The
US CEP market is facing a weak financial year 2010. The consulting and
market research company Colography Group is forecasting growth of less
than 120m new consignments next year, with parcel services and air
freight exports expected to make up almost the entire growth. Sales are
expected to rise by almost 4.6bn euros, an increase of 6.4 per cent.
Parcel volumes and sales may have fallen at UPS, but this has shown no
impact on the integrator’s lobbying expenditures.
In order to make up for losses in current core activities, TNT plans to
become active on the European parcel market in the future.
Russian consumer advocates have called on the country’s supreme court to
overturn the law on the access to mail consigments.
TNT plans to expand in Borneo.
Thanks to growth of between 8 and 9 per cent, DHL has secured a market
share above the 50 per cent mark in the Philippines.
Royal Mail will invest an additional 120m pounds, equivalent to 138.9m
euros, in modernising the business.
TNT Express has expanded its capacities in Vietnam.
The Swedish Posten AB plans to reduce the number of letterboxes.
UPS has opened up a new operations base in the centre of Moscow.
Schweizerische Post is reacting to the collapse of the mail and parcel
volume. The company is calculating a scenario that means the loss of
hundreds of jobs.
According to reports from Washington, the US post appears to be
considering an unscheduled price increase. The post and the Direct
Marketing Association initially discussed raising the postage for first
class letters by six cents to 50 cents and to carry out similar price
increases for other mail services. Now, however, the parties are
discussing increases of just 2 to 3 per cent, or 1 cent for first class
letters. An increase in rates requires the Postal Regulatory
Commission’s approval.
The MRU, founded in 1992, is the only consultancy in Europe, which has specialised in the
market of courier-, express- and parcel services. For large-scale shippers and CEP-services in particular, the MRU provides
interdisciplinary advice for all major questions of the market, as there are for example market entry, product design,
organisation, and EDP.To learn more about the stories reported
above, contact CEP News. (We appreciate the courtesy extended by CEP News to help whet your
appetite for more of what CEP offers.)
Today
from Hellmail:
From the Federal Register:
At the Postal Regulatory Commission:
Canadian Driver has reported that "Japan’s postal service has agreed to
become the first major customer for a modular, globally-available integrated
electric vehicle (EV) drivetrain."
Reuters has reported that "a U.S. court on Monday rejected an appeal
filed by FedEx Corp employees who were seeking federal class-action status
in a wage-and-hour dispute with the package delivery giant. A three-judge
panel of the Atlanta-based 11th Circuit Court of Appeals upheld a lower
court's ruling that blocked the hourly employees in Florida from forming a
class. The appeals court ruled the lower court had not abused its discretion
in ruling against the employees."
July 28, 2009
Mark-up of the Senate bill on the Postal Service's retirement obligations is
tomorrow, 10 a.m., Senate Dirksen SD-342.
Logistics Manager has reported that "UPS said today it has rolled out a
new service for shipping small packages via ground from Mexico to the United
States. Dubbed UPS Standard, UPS said this offering, which went live on July
13, provides shippers with a new tool for managing their transportation
costs."
According to the
Muskegon Chronicle Editorial Board, "The Post Office is on the right
track to saving money."
Bloomberg
has reported that "FedEx Corp. must face more state class-action lawsuits by
contract drivers who claim they deserve benefits because the company treats
them as full-time workers by mandating their clothing, hours and prices, a
judge said. U.S. District Judge Robert Miller in South Bend, Indiana,
yesterday granted drivers’ request to sue as groups on behalf of workers in
Arizona, Georgia, Ohio, Utah, Louisiana, Nevada, North Carolina and Oregon.
In the same ruling, Miller denied similar requests by drivers in Colorado,
Connecticut and Vermont as well as claims that some of the lawsuits should
cover all such FedEx drivers in the U.S."

CNJOnline has reported that "A Clovis city commissioner is hopeful that
a public effort can save the Gidding Street post office like it helped save
Cannon Air Force Base. In the days following the second public meeting about
the post office, which the U.S. Postal Service wishes to close for financial
reasons, Commissioner Len Vohs said he hopes a public effort can convince
the USPS to find other solutions."
The
DM Bulletin has reported that "Royal Mail is to reduce the price of
Mailsort 3 - the primary tariff used by direct mailers - by three per cent,
in a move likely to anger competitors TNT Post, UK Mail and DHL. The price
drop is designed to maintain mail’s competitiveness as a communications
channel, a spokesperson for Royal Mail said. "
Reporting that broad restructuring is urgently needed, the
U.S.
Government Accountability Office
(GAO) today added the financial condition of the U.S. Postal Service
(USPS) to its High-Risk List
of federal areas in need of transformation. See also the
Washington Post, the
Federal Times, and the
Washington Examiner.
The
Wall Street Journal has reported that "Bank of America Corp. Chief
Executive Kenneth Lewis told investors last week he is planning to shrink
the company's 6,100-branch network by about 10%, a pullback from the
two-decade expansion that took the bank from coast to coast."
Information Week has reported that "Researchers from MIT's Media Lab
have created a new optical tag that can store a million times more data than
a similarly-sized barcode, without the privacy risks of RFID tags. The tag,
called a Bokode, is only 3mm, much smaller than a typical barcode. It relies
on a new way of encoding data: measuring the brightness and angle of light
rays coming from a Bokode tag."
The
APWU
has told its members that "Quick action is expected on a Senate bill that
would provide the Postal Service emergency, short-term financial relief, and
APWU President William Burrus is urging union members to ask their Senators
to support the legislation. The Postal Service Retiree Health Benefits
Funding Reform Act of 2009 (S. 1507), which was introduced by Sen. Tom
Carper (D-DE) on July 23, would restructure the USPS obligation to pay
retiree healthcare benefits, and would generate savings of billions of
dollars over the next several years. The USPS is projecting a loss of $7.1
billion in Fiscal Year 2009, despite predictions that it will cut costs by
$6.1 billion this year."
Sky News has reported that "Post Staff Strike Again As Pay Row Worsens."
From the Federal Register:
Radio New
Zealand International has reported that "The American Samoan Post
Master, Smitty McMoore, from Pago Pago says there is no plan to downsize
staff of the local Post Office. The United States Postal Service in Hawaii,
of which the local post office comes under is reviewing whether to close any
of its 104 post offices as part of a national effort to make up for billions
of US dollars in losses due to reduced use of postal services. Mr McMoore
says since American Samoa has only one post office, he’s confident that the
local postal facility will be spared from the cuts."
Hellmail has reported that "the Romanian postal service announced
yesterday that a proposal for the future of the service has been finalised
and is being forwarded to the Romanian Ministry of Communications and
Information. The proposal will form the basis for further public debate and
a framework for legislative change needed to ensure the service can compete
in a more competitive market."
GovExec.com has reported that "A Senate panel on Wednesday will consider
a bill that would restructure how the financially-strapped U.S. Postal
Service pays for its employees' retirement health benefits. S. 1507 would
reduce the amount of money USPS must pay to the Treasury Department's Postal
Service Retiree Health Fund, which covers future retirement payments, and
provide the agency with a larger borrowing limit to meet its current
payments. The legislation also would allow USPS to tap into the retiree
health fund to cover retirement benefits for postal workers beginning in
2009 instead of 2017 -- the current date set by law. Faced with a decline in
printed mail during the recession and fiscal shortfalls in its budget, the
Postal Service has been trying to cut costs and streamline operations. In
its fiscal 2009 second quarterly financial report, USPS officials said they
did not expect to meet a scheduled $5.4 billion payment for future
retirements on Sept. 30, the end of the fiscal year. The 2006 Postal
Accountability and Enhancement Act requires that payment."
Transport Topics has reported that "FedEx Corp. said it has named Mike
Moss as president of FedEx National LTL, the parcel carrier’s long-haul
less-than-truckload unit."
July 27, 2009
FoxNews has reported that "The FBI is investigating 11 suspicious
letters containing a white powder that were sent to various New Jersey
government offices this month. The letters have been received at police
departments and government offices throughout northern New Jersey. The first
one came July 17. Letters have been received in Totowa, Clifton, Wayne,
Ringwood, Fair Lawn and Woodland Park. All the letters are being tested. The
FBI says first three letters tested came back negative for biological agents
and no injuries have been reported."
The Subcommittee on Federal Workforce, Postal Service, and
the District of Columbia will hold an oversight hearing entitled “ Making
Sense of It All: An Examination of USPS’ Station and Branch Optimization
Initiative and Delivery Route Adjustments”
on Thursday, July 30, 2009 at 10:00 a.m. in room 2154 of the Rayburn House
Office Building.
The
latest entry on the blog posted on the U.S. Postal Service Office of
Inspector General’s Internet site “Pushing
the Envelope.” The public, mailers, postal employees, and other
stakeholders are invited to weigh in on the online discussions taking place.
To view the site, visit
http://blog.uspsoig.gov/.
The Postal Service operates as a businesslike entity, but it is also part
of the government. Should the Postal Service be allowed to freely award
employees for a job well done? To recruit, retain, and reward talented
employees, what do you think is appropriate for the Postal Service?
You can visit Office of Inspector General’s public website at:
www.uspsoig.gov. If you have additional questions, please contact
Communication and Work Life Director Agapi Doulaveris at 703.248.2322.
There will be a meeting of the Committee on
Armed Services on Thursday, July 30, 2009 9:30 AM in Room SD-106 Dirksen
Senate Office Building to consider the nominations of:
Honorable John M. McHugh to be Secretary of the Army.
[EdNote: Saaaaaaalute!!]
Makfax has
reported that "Representatives of the state-owned companies in Croatia held
a meeting today with the Prime Minister Jadranka Kosor, at which they vowed
for keeping the prices of goods and services at the current level, despite
the recent increase of the VAT tax. Representatives of the Croatian electric
power and water supply companies, postal offices, railway and maritime trade
companies, Croatian Roads and Zagreb Holding, held talks with the prime
minister in Zagreb on Monday. After the meeting, Kosor confirmed this
information, adding that Zagreb Holding will maintain the prices during the
next year also."
The
Press Association has reported that "The postal workers' union has
announced plans to escalate strike action across London in a worsening
dispute over jobs, pay and services. Members of the Communication Workers
Union (CWU) took industrial action on Saturday and are due to walk out again
on Tuesday and Wednesday, disrupting deliveries to homes and offices."
DMM
Advisory:
Intelligent Mail® Services Weekly Update.
-
PostalOne!®
Patch Release 20.1 (July 19):
The July 19 software upgrade was implemented on Sunday. The
functionality supported in this upgrade is explained in the
Post-Release Notes
posted on
RIBBS™.
The
User Access to Electronic
Mailing Information and Reports Guide,
Appendix B illustrates the Full-Service address correction data
elements that are provided by the software update.
-
Full-Service Intelligent Answers:
On July 31, we are initiating Full-Service Intelligent Answers, a
weekly telecon to answer questions and resolve issues for mailers
migrating to the Full-Service application. If you are participating
in the Full-Service process, join these calls to exchange
information with postal and industry stakeholders to get answers to
your Full-Service questions. The dial-in information will be posted
on
RIBBS, Intelligent Mail®
Services, Latest News
on Thursday.
-
Full-Service Mailings in Production:
Over 15 mailers mailing across 125 sites have successfully executed
the Full-Service test scenarios in the Test Environment for Mailers
(TEM). Several of these mailers have begun submitting Full-Service
mailings.
-
Webinar Schedule: We
will conduct a series of webinars on Intelligent Mail topics. The
webinar on August 21 from 2:00-4:00 EDT, entitled "Full-Service
Benefits: Full-Service ACS™" will describe the address correction
information available under the Full-Service option. This webinar
will describe the contents of the address correction information,
how it is provisioned and the flexible data distribution options
available. It will demonstrate how to optimize the use of Service
Type Identifiers and Mailer IDs in the Intelligent Mail barcode and
how to construct the electronic documentation to derive the greatest
value from Full-Service ACS. It will describe how Full-Service ACS
is different from the other address correction services and how
mailers can use these in conjunction with Full-Service to ease the
transition to Full-Service ACS. Watch for more details and links to
the webinars in future Intelligent Mail Weekly Updates and on the
Intelligent Mail calendar
on
RIBBS.
-
Intelligent Mail Full-Service Feedback Sample Data Files:
With the Full-Service
option, mailers receive address correction information to include
Change of Address and Nixie records at no charge, according to the
limitations defined for the class of mail and the frequency of
notices provided. This data is available via downloadable reports
and Mail.XML® electronic messages. Mailers also receive
Start-the-Clock and Container Visibility/Induction Scans data at no
charge. This data is available via online reports and Mail.XML
electronic exchange messages. Sample data files illustrating
Intelligent Mail Full-Service feedback formats are posted on
RIBBS.
We also posted sample
Customer Supplier Agreement files. This data is accessible via the
Important Links on the
Intelligent Mail
Services, Guides
page and the
Intelligent Mail
Services, Latest News
page. The
sample data
provided includes:
-
Full-Service ACS
Nixie Data in comma delimited (CSV), Excel (XLS), and Mail.XML.
-
Full-Service
Start-the-Clock Data in Mail.XML.
-
Full-Service
Container Visibility Induction Scan Data in Mail.XML.
-
Full-Service Customer/Supplier
Agreement (CSA) Data.
-
Intelligent Mail Symposium:
The next IMb University is scheduled for Tuesday,
October 6, in Columbus OH. The presentations from
the July 16 symposium are posted on
RIBBS
under
Presentations, Intelligent Mail Symposium 7/16/2009
Ft. Worth TX.
-
Save the Date:
April
11-14, 2010 National Postal Forum, Nashville TN.
-
Assistance:
Please call the PostalOne! Help Desk at 1-800-522-9085 if
you have any questions or problems accessing the
Business Customer Gateway, your accounts, or
submitting electronic documentation.
As
The Packer has noted, "With budgets stretched thin and margins tight,
environmental stewardship might have taken a backseat to other concerns.
Sustainability, however, has never been more top of mind. What has changed
is its definition. Sustainability is more than going green. It is about
sustaining a business."
From the Congressional
Research Service: " Post Office
and Retail Postal Facility Closures: Overview and Issues for Congress,"
by Kevin R. Kosar, Analyst in American National Government. July 23, 2009.
Transport Intelligence has reported that "FedEx Express, a subsidiary of
US-based FedEx Corporation, last week announced that Mexican operation FedEx
Express Nacional planned to introduce a new domestic delivery before the
beginning of the working day service option. "
Advertising
Age has noted that "even the recession can't explain this many lost ad
pages -- the dominant source of magazine income and measure of their
financial health. Monthlies' ad pages through their August issues had
already sunk 22%, according to the Media Industry Newsletter, with drops
topping 40% at Dwell, Ebony, Men's Journal, Town & Country, Gourmet,
National Geographic Traveler, Veranda, Saltwater Sportsman, Teen Vogue,
Sound & Vision, Wired and others. Then ad pages in fashion and beauty
titles' big September issues -- the most important month for them and for
their advertisers -- fell by double digits for nearly everyone. Some of
those pages will return with a broader recovery, but many, sadly for the
industry and many devoted readers, probably won't."
Hellmail has reported that "Dutch-owned TNT NV, has reported 60% a fall
in net profit for the second quarter, mirroring a similar fall to that of
Deutsche Post DHL as the global economy continues to depress express
deliveries. A drop in consumer spending, the collapse of some retailers and
restructuring of supply chains has had a significant impact on both German
and Dutch operators and it is unclear just how much the economic crisis will
affect the Royal Mail Group in the UK."
Associated Press of Pakistan has reported that "All Pakistan Postal
Circles and Regional Offices Employees Union has condemned the decision of
the government to privatise Postal Department and said that it will be a
great economic loss for the employees of the department."
According to
DM
News, "Despite rising postage and paper costs, direct mail remains an
important part of apparel marketers' multichannel mix. Developments in
variable data printing and database marketing enable these marketers to send
targeted messages to their best customers that feature high-quality imagery
and creative that attracts buyers."
The
Moderate Voice has noted, "This month, for the first time in decades, a
payment I sent did not reach its recipient. This rare mishap was a reminder
that good old reliable snail mail is in its death throes after 234 years of
creating a national community out of isolated places thousands of miles
apart, making a daily visit to the mailbox an adventure that brought the
world to us with words on paper, many of them in the handwriting of people
we love. The decline now is even faster than it was during the Great
Depression as the Postal Service projects 10 billion fewer pieces of mail in
each of the next two years, from a high of 213 billion in 2006 to an
expected 170 billion next year. The price of stamps will rise, of course,
and there will also be less frequent deliveries and more closings of small
post offices as Americans e-mail, text-message and tweet one another instead
of dropping envelopes through narrow slots. It’s so much more convenient to
pay bills online and have instant communication with friends and family that
there will be few mourners for snail mail but, as with all progress,
something will be lost....Newspapers and magazines have migrated to the Web
as well, trying to make sense of the world from minute to minute."
The
Financial Times has reported that "When Canada Post set out four years
ago to reshape the way it handled employee engagement, it knew that, with
its staff dispersed across a vast country, it faced a difficult task. But
the government-owned postal service did not expect that one of its greatest
challenges would be with its top 400 senior managers. In its annual employee
survey, Canada Post found that in spite of progress in trust, leadership and
work environment, the company had slipped on providing career development
and training for its top staff."
World Radio Switzerland has reported that "Swiss customs officials have
seen a rise in the amount of anabolic steroids being confiscated—the number
doubled from 2007 to 2008. And that spike, according to the government, is
because more amateurs in Switzerland are turning to the drugs to build
muscle and better their sports performance. In fact, customs officers and
sniffer dogs go through the mail at the Swiss postal service’s sorting
centre in Mülligen, near Zurich, every day to seek out drugs, fake goods and
other contraband. So far this year, they’ve sniffed out 130 packages
containing class-A drugs and confiscated around 60 fake identity documents.
WRS’s Catherine Allen called on Swiss customs officer Max Gerber to find out
more about their daily work—and some of the more unusual contraband that
passes through."
Forexyard has reported that "TNT's quarterly core profit fell 45
percent, its fourth consecutive year-on-year decline, and the Dutch mail
company boosted its cost savings target to cope with weaker demand for
delivery services." See also
EasyBourse.
Polish
Market has reported that "Polish Minister of Infrastructure Cezary
Grabarczyk has signed an agreement concerning the privatisation of Polish
Post, the Ministry has informed in a communiqué. Poczta Polska will be
converted into a company wholly owned by the Treasury called Polska Poczta
SA. The move is intended to prepare the company for the full liberalisation
of the postal market planned for 2013, the Ministry explains. The current
director of Poczta Polska Andrzej Polakowski became the President of the
Board of the new entity which has 100,000 employees in over 8,000 offices.
The company closed 2008 with a negative financial result – its losses came
to PLN 291 million."
The
New York Daily News has reported that "The United States Postal Service
is considering closing as many as 40 post offices throughout Brooklyn,
according to union officials. The prime targets are 18 retail stations in
storefronts around the borough, said Brooklyn American Postal Workers Union
president Jim Musumeci."
Delmarva Now has reported that "Post offices at the beach have stopped
accepting bulk mail, forcing business owners to travel to Georgetown when
they need to send flyers, brochures and the like." At the Postal Regulatory Commission:
According to
The Ledger, "Technology and our dependence on it is getting more
prevalent, not less. The volume of mail sent is going to continue to
decrease. Mail service is incredibly labor intensive. It burns up an
extraordinary amount of fossil fuel and human labor, demands a tremendous
number of vehicles and uses an awful lot of paper. It will probably always
exist in this country, because, while information can be sent via computer,
objects cannot. Over time, though, that service will inevitably decline to
five days a week and, eventually, to fewer days than that. This all will be
a change, and a big one, but it won't be a bad. In truth, e-mails and texts
are better, cheaper, faster and more environmentally friendly ways to
communicate in most cases. The sooner we stop depending on the Postal
Service, the better off we will be."
July 26, 2009
If
you're up to reading a description of today's arguments over health care
reform written as if the discussion had to do with the Postal Service, read
the
Daily Kos.
The
Memphis Commercial Appeal has reported that "FedEx shed upwards of
10,000 jobs globally over the past year in response to weak demand and
declining revenues. The Memphis-based company's annual report said FedEx
ended its fiscal year May 31 with more than 280,000 team members, compared
with more than 290,000 on May 31, 2008. Revenues were down 6 percent, to
$35.5 billion, for the year. About 3,100 job cuts were announced at various
times during the year, while the rest resulted from normal attrition and a
hiring freeze, spokeswoman Sandra Munoz said. When FedEx announced a
1,000-job cut across all operating companies in early April, officials said
that included an estimated 500 jobs in Memphis, where the company employs
more than 30,000 people. The annual report said FedEx Express, the largest
operating company, had 5,000 fewer workers. The only FedEx unit showing
employment gain was FedEx SmartPost, a business-to-consumer service that
uses the U.S. Postal Service for the final leg of delivery."
NZTV has reported that "Mail makeover spruces up the posties."
RIMarkable has reported that "TIME Magazine has just launched a new
mobile application for the BlackBerry simply called the TIME BlackBerry App.
Get the latest news, read opinion and analysis from TIME influential
bloggers, while also having the ability to browse through award-winning
photography and TIME’s hugely popular Lists. You can also customize the
content to easily view headlines from your favorite sections. You’ll get
updates automatically pushed out to your BlackBerry® smartphone, so you can
read it on the subway or on a flight. It’s the fast and easy way to have
TIME with you to read and peruse, no matter where you are. Best of all, it’s
FREE!"
According to Dead Tree
Edition:
-
Postal officials are spreading the word that they may
seek emergency rate increases next year.
-
Quebecor World went back to the future today, emerging
from bankruptcy protection under the new but old name "World Color
Press". World Color Press and Quebecor Printing merged a decade ago to
form Quebecor World. The company is changing its name to distinguish
itself from its former parent, Quebecor Inc., a Canadian media company
whose stake in the old Quebecor World is now worthless.
July 25, 2009
According to
Marketing Profs, "Smart direct marketers are obtaining dramatic lift in
results with "the new direct mail," which uses new relevance technologies to
deliver digitally generated, one-to-one messages to prospects through the
mail that link to a corresponding Web component. The new direct mail moves
away from batch-blast campaigns—where every recipient gets the same
mailer—and instead delivers customized, relevant offers to each customer,
driven by customer relationship management (CRM) data systems."
Equimedia has reported that "Marketers are optimistic about the second
half of 2009, with two-fifths of business leaders planning to boost
marketing spend over the next six months. The 2009 Marketing Trends Survey
released by StrongMail Systems revealed that 42 per cent of firms will look
to increase marketing spend in the coming months, while 43 per cent are
planning to keep budgets at current levels. In particular, firms appear to
be looking at
increasing investment in email marketing,
with 81 per cent of those polled saying they will be putting more money into
this area. Bill Wagner, executive vice-president of business operations at
StrongMail, said: "The fact that planned investments in email marketing have
actually increased in the past six months at the expense of more traditional
marketing channels speaks to email´s status as the most economical and
effective tool in a direct marketer´s tool box." [EdNote: Have the Postal
Service file an exigency case, and watch interest in alternative channels
soar. The feet beating away from mail will sound like a stampede.]
In
response to the question: "With so many ways to communicate with consumers,
which medium do you think would be most effective?" Here is what
National Mortgage Professional had to say: "Due to the recession, media
costs have gone way down. This is a great opportunity for small businesses
to advertise at rates never before this low. And during a recession, media
rates are all negotiable. A radio station, for example, would rather run
your advertisement rather than a public service announcement. My preference
for the mortgage industry would be radio, the Internet and direct mail.
Radio is cheap, reaches a wide audience and with repetition, could make a
big difference in your awareness and response."
Air Cargo World has reported that "Scott Davis, UPS chairman and CEO
told analysts that UPS is a company “that can weather this recession,
positioning ourselves well to benefit when economic recovery occurs." UPS
Chief Financial Officer Kurt Kuehn said, "We are exceeding targeted cost
savings, without compromising our high levels of service, while also
investing for the future," Kuehn said. "We are managing our business with a
keen eye on balancing cost cutting with strategic investment."
Here
are three stories. All about the same. At a time of dwindling mail volume
and high unemployment, you would think that the thing to do would be to do
the right thing. Just deliver the mail!
The
South Bend Tribune has reported that "Bruce Graybill, 56, of Goshen, has
been charged in a three-count indictment, according to Jesse Barrett,
assistant United States attorney. Specifically, the counts are
obstruction of mail, unlawful delay of mail by postal employee, and
embezzlement of mail by postal employee. The charges were filed as the
result of an investigation by the United States Postal Inspection
Service. "
The
Northampton Chronicle & Echo has reported that "A Northampton
postman who stole more than £50,000 worth of packages from his depot in
11 months has failed in an Appeal Court challenge to his prison
sentence. He appealed against the term yesterday, but was told by top
judges, Mr Justice Butterfield and Sir Geoffrey Grigson, that the
seriousness of his offences warranted the tough sentence."
The
Press Association has reported that "ustralian police have arrested
a postal worker who they say delivered thousands of customers' letters -
to himself. Residents in the Sydney suburb of Roseville had complained
for months that they weren't receiving their mail, New South Wales state
police Detective Inspector Peter Yeomans said on Thursday. Police began
surveillance on one mailman based on a tip from Australia Post."
The Gazette has noted that "Sorting mail by hand and delivering it on
foot, Canada Post remains a low-tech operation - faster than a carrier
pigeon, but lagging well behind email. And as electronic communications of
all kinds continue to ravage the postal industry - think texting, faxes,
e-vites and e-bills, not to mention cheap long-distance calling - some have
begun to wonder whether "snail mail" will rise to the challenge and reinvent
itself, or slowly but surely disappear."
The
Malta
Independent has reported that "In a company announcement yesterday, the
directors of MaltaPost advised that, for the period 1 April to date, there
were no material events and transactions which would impact, in a
significant manner, the operational performance of the company. As was
previously advised, and in accordance with the changing characteristics of
the current market, MaltaPost has continued to witness encouraging growth in
the parcel, as well as the package post business, while at the same time as
experiencing a volume reduction in the traditional postal mail. All other
revenue streams continued and are expected to continue to perform as had
been expected."
Postal
snippets from around the nation:
The
BBC
has reported that "Postal workers in London have begun a three-day strike in
a row over jobs and pay cuts. The walkout, by an estimated 12,000 members of
the Communication Workers Union (CWU), will continue on Monday and Tuesday.
The union said Royal Mail was cutting jobs and pay against a national
agreement which it said was affecting postal services. Royal Mail insisted
the union stood in the way of modernisation."
Kiplinger has reported that "another big hike in the cost of a
first-class stamp looms -- to 50¢ from the current 44¢. That follows a 2¢
hike earlier this year. Odds are better than even that regulators will
approve an emergency jump next year, as USPS mail volume continues to slump
and revenues continue to shrink. The 2006 postal reform law says that USPS
can boost postage each year in line with hikes in the Consumer Price Index
in the preceding 12 months, but it provides an escalation clause if the
Postal Service is drowning in red ink. The jump in stamp prices could be
averted with help from Congress and the Obama administration, but they
remain intransigent. Lawmakers and the White House insist that USPS should
continue overpaying around $3 billion a year toward its retirees’ benefits.
The money is held by the Treasury, helping to offset the federal budget
deficit. It’s part of a larger budget shell game that’s been used for
decades, counting Social Security and nuclear waste cleanup trust funds as
revenue, for instance."
According to the
Washington Post, "the U.S. Postal Service says it removes
"underperforming" mailboxes -- those that collect fewer than 25 pieces of
mail a day -- after a week-long "density test." Snail mail is a dying
enterprise because Americans increasingly pay bills online, send Evites for
parties and text or give a quick call on a cellphone rather than write a
letter. Combine the impact of new technologies with the gut punch of the
recession, and in the past year alone, the Postal Service has seen the
single largest drop-off in mail volume in its 234-year history, greater even
than the decline from 1929 to 1933 during the Great Depression. That
downward trend is only accelerating. The Postal Service projects a decline
of about 10 billion pieces of mail in each of the next two years, going from
a high of 213 billion pieces of mail in 2006 to 170 billion projected for
2010."
Reuters has reported that "Shares of United Parcel Service Inc, rose on
Thursday as the world's largest package delivery company said its domestic
and global businesses appeared to be stabilizing."
Forbes
has reported that "UPS Inc., the world's largest shipping carrier, spent
more than $1.4 million in the second quarter to lobby on Federal Aviation
Administration reauthorization, aviation technology and safety, and
competition issues, according to a recent disclosure form."
The July
24, 2009 issue of the National Association of Postal Supervisors
Legislative & Regulatory Update has been posted on this site.
July 24, 2009
The latest copy of the
National Association of Postmasters of the U.S. electronic governmental affairs newsletter is available on the NAPUS web site.
Press Release:
"BCC Software: Mailing Industry News (available at
http://blog.bccsoftware.com), will
feature key insights on postal and mailing topics, the most up-to-date
product release information, updates about appearances at industry events
and tradeshows, and other topics of interest to the professional mailing
industry."
Barron's has reported that "Netflix shares are plunging this morning
after the company last night reported Q2 revenue in line with estimates and
profit per share better-than-expected, and forecast the rest of the year to
be about in line with estimates. Caris & Co.’s David Miller sticks with his
“Buy” rating on the shares and raises his price target to $54. He’s most
interested in the outperformance in earnings before interest and taxation
(EBIT), which came in at $52.9 million, ahead of his $50.6 million estimate.
Miller thinks this shows
the benefits of lower cost to “stream” movies over the Internet,
which the company is offering in addition to its postal mail disc delivery.
Miller says the Street is spooked about the effects of giving away streaming
video rentals to subscribers for free even thought Netflix still has to pay
studios for the rights to stream movies. But miller says higher EBIT shows
that doing so is
cheaper than supporting postage."
Logistics Management has reported that "DHL will be moving its U.S. hub
operations from the Wilmington Air Park to the Kentucky-based
Cincinnati/Northern Kentucky International Airport this weekend, according
to various reports."
According to
Courier, Express and Postal Observer, "with the Dow climbing above
9,000, it appears that investors believe that the financial panic that began
with the Lehman bankruptcy is over. Much of the recovery in stock prices
reflect 2nd quarter earnings reports that are coming in higher than analysts
projected. Unfortunately for the general economy, and in particular the
consumer-driven segments of the economy that the drives the Postal Service's
business, the improvement in company earnings come from aggressive efforts
to cut costs, capacity and employment to match lower demand levels and not
from growth in sales and revenue. Similar stories exist about how small
businesses are surving by cutting capacity and employment."
Sen. Tom Carper (D-Del.) today introduced legislation to help address the
dire financial situation facing the United States Postal Service. Carper's
“Postal Service Retiree Health Benefits Funding Reform Act of 2009” would
restructure the postal service’s retiree health payment schedule to produce
significant cost savings over the next several years. The Carper bill also
gives the postal service more borrowing authority to meet its financial
obligations and get through this current fiscal year and next. (See the
story on the OMB-backed idea in the PostCom Bulletin.)
The latest issue of
the PostCom Bulletin is available online. In this issue:
-
CBO told Congress that granting the U.S. Postal Service relief from its
PAEA-imposed employee health retirement payments would remove some of the
pressure that is currently causing the Postal Service to reduce costs and
become more cost-efficient.
-
The USPS OIG has reported that "if the Postal Service continues the payment
schedule required by the Postal Accountability and Enhancement Act of 2006
(the Act), our calculations indicate that the Postal Service could over fund
its retiree health care liability by $13.2 billion by the end of fiscal year
2016. The Postal Service could pay on average $4.0 billion less each year
from FYs 2009 to 2016 to prefund its retiree health benefits and still
achieve the same level of funding anticipated under OPM's assumptions. The
net present value of the interest savings from the reduced payments is $5.95
billion. The funds should be put to better use.
-
Word has it that the green eyeshades over at the Office of Management and
Budget have examined more closely the ideas that have been advanced thus far
to help the Postal Service address the issue of its prefunding obligations
retiree health benefits. A redraft of what today is know as H.R. 22 ("Postal
Service Retiree Health Benefits Funding Reform Act of 2009") is being
circulated and discussed within the Washington postal community.
-
The Postal Regulatory Commission (PRC) has issued a notice of public forum
on two issues it would like to further explore, to be held on August 11 at
1PM.
-
The U.S. Postal Service is facing the biggest deficit it has ever seen since
it left the cocoon of being supported by tax revenues and became the
self-supporting USPS we know today. A fixed cost idea to consider is the
actual pay that postal employees receive, whether they are unionized or EAS,
compared to that of their counterparts in the other government agencies.
Here are the facts.
-
White House pressured to fix postal budget crisis. USPS debuts largest green
roof in NYC. Direct mail volume flattens out. USPS gateway district profits
with sox. Pharmaceutical returns program extended. UPS profits fall.
-
Updates on dockets at the Postal Regulatory Commission.
-
An update on DMM Advisory notices issued by the U.S. Postal Service.
-
Short list of the many stories focusing on the potential post office and
distribution center consolidation or closing.
-
A review of postal news from around the world.
-
Postal previews
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The
BBC
has reported that "postal workers in London who are concerned about jobs and
pay cuts will launch a strike on Saturday. About 12,000 Communication
Workers Union (CWU) members will return to work on Wednesday."
As
Inside Retailing has noted, "Australia Post has lodged a draft
notification with the Australian Competition and Consumer Commission (ACCC)
proposing to increase the basic postage rate by five cents, effective from
early 2010." See also
The Western Australian.
The
Winchester Star has reported that "After months of study, the U.S.
Postal Service has decided to move its local mail-processing operation to
Northern Virginia. The Winchester Post Office at 340 N. Pleasant Valley Road
will no longer sort the mail. That function will be combined with the
sorting operation at the Dulles Processing and Distribution Center about 50
miles to the east."
According to
IOM Today, "disruption to mail services, mainly in the London area, is
set to continue this weekend after the Communication Workers' Union (CWU)
announced further stoppages. All London postcodes will suffer disruption to
collections and deliveries tomorrow (Saturday) with the majority of postal
staff returning to normal working by Monday."
Brazzil
magazine has reported that "The experience of Brazil with exporting through
the Postal Service is being reproduced in other countries. Peru and Uruguay
have already created systems that emulate the Brazilian initiative. Colombia
should do the same next month, and Argentina, Ecuador and Venezuela are also
interested, according to the International Business manager of the Postal
Service, Djalma Lapuente da Rosa. Exporta Fácil (Easy Export), as the Postal
Service export system is called, was established in 2002 as part of an
effort of the Brazilian government to simplify the exporting process,
granting micro and small businesses access to the foreign market and
decentralizing foreign sales in the country, which are too focused on the
South and Southeast regions of Brazil. Postal Service agencies are spread
throughout the entire country, so the Exporta Fácil has made exporting
easier for companies based in small Brazilian cities."
The Sri Lankan
Ministry of Defence has noted that "Postal services in the East mainly
in Trincomalee district are being developed under the "Eastern Reawakening"
("Neganahira Navodaya") Programme which is launched by the government after
liberating the entire Eastern Province from the LTTE terrorists.
Accordingly, new buildings for the post offices are now being constructed in
Pulmodai, Kuchchaveli and Kurinjankerni areas, Trincomalee district Postal
Superintendent Ranjith Karunanayake said. 70 million rupees are being spent
for the development of the postal services in the east, the Postal
Superintendent added. Massive postal development projects come under the
Eastern Reawakening Programme to restore the administration in the east to
normalcy."
From the Federal Register:
The
New York Times has reported that "United Parcel Service, the world’s
largest package delivery company, said on Thursday that its second-quarter
earnings fell 49 percent as the recession cut business demand. It forecast
that its profit in the third quarter will be lower than analysts’
projections."
From
PR Newswire: "The U.S. Postal Service's international mail facility at
New York's John F. Kennedy (JFK) Airport has earned its second consecutive
Certificate of Excellence from a leading international association dedicated
to improving service for postal customers around the world."
The
Daily Mirror has reported that "The Department of Postal Services had
issued around 1737 postal identity cards to school children through the
mobile service held in the Vavuniya and Jaffna on the 11th and 12th of this
month with the collaboration of the Ministry of Public Administration and
Home Affairs, the Deputy Minister of Posts, M. S. Sellasamy said. The Deputy
Minister said the mobile service conducted under the “Uthuru Wasanthaya”
programme, introduced by the President Mahinda Rajapaksa to develop the
Northern Province, which has been badly affected by war, is done to improve
the public service in the area. The Deputy Minister also said the general
public of the area had been facing various difficulties due to the delays in
the post and lack of telecommunication facilities as well."
According to the
Prarie Post, "Although officials with the Canadian Union of Postal
Workers (CUPW) are pleased to see an independent advisory panel has not
recommended the deregulation of public postal services, they are still
concerned about the future of rural post offices."
At the Postal Regulatory Commission:
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