September 2004
Amendments To Postal Reform Bill
In June, the Senate Governmental Affairs Committee unanimously approved the Postal Accountability
and Enhancement Act. However, before the vote, several amendments to the bill were approved.
Amendments to the bill were introduced to make the bill more uniformly accepted. For example,
competitors of the USPS have long complained about the post office's unfair advantage in pricing parcels
and overnight products since they are able to subsidize a loss in those products with
money gained from First Class postage. And postal worker unions have complained about special discount pricing the
USPS has negotiated with large mailers.
This postal reform bill, which could become legislation as early as this year, addresses those issues
with rate caps for market-dominant products like First Class mail and limits negotiated rate discounts to
be no more than the cost savings. Also, while the USPS Board of Governors would have
authority to set rates for competitive products like parcel post and Express Mail, they cannot subsidize those products
with market-dominant products.
Senator Richard Durbin (D-IL) introduced an amendment ordering a study on potential rate incentives for
mailers that use recycled paper.
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Let's be honest. The people and systems of the USPS possess a plethora of information. The problem,
though, is there is not one place or one person that has all the data. While we've found that every USPS
employee is diligent in helping to solve problems, like any bureaucracy, answers are
sometimes just beyond our reach.
CCI has always tried to fill in the blanks and educate our customers in the
mailing industry. Our latest endeavor is the best yet. There has always been
a shroud of mystery around Sectional Center Facilities (SCF) - what they are,
where they are, what they do, and why they are important to mailers.
I know you'll find these services invaluable, so to help you get started, we're
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