USPS News Link--In a series of letters to the editor in several media outlets, DPMG Ron Stroman explains the steps the Postal Service is taking to restore its financial stability.
In his editorial responses to Adweek, The Hill and Post and Parcel, the DPMG describes the need for pricing adjustments. Stroman notes that a request for moderate price increases was necessary and adheres to a 2006 federal law that allows the Postal Service to seek increases in the wake of "exceptional or extraordinary circumstances."
In his editorial responses to Adweek, The Hill and Post and Parcel, the DPMG describes the need for pricing adjustments. Stroman notes that a request for moderate price increases was necessary and adheres to a 2006 federal law that allows the Postal Service to seek increases in the wake of "exceptional or extraordinary circumstances."
The Great Recession qualifies as one of these circumstances, Stroman argues. "The Postal Regulatory Commission has reached this conclusion as well," he adds.
"Since the end of 2007 mail volume has been declining rapidly," he explains. "In fact, by the end of 2010, approximately one out of every five mail pieces disappeared primarily due to the Great Recession."
"Since the end of 2007 mail volume has been declining rapidly," he explains. "In fact, by the end of 2010, approximately one out of every five mail pieces disappeared primarily due to the Great Recession."
Stroman also notes that the Postal Service has pursued every responsible avenue of cost reduction available to us under the law to address its financial condition. The Postal Service Board of Governors' request to increase prices was a decision they "reluctantly came to . . . as a last resort," Stroman explained.
The DPMG closes his letter by noting that the Postal Service would reconsider its pricing strategy if these financial challenges were alleviated by the timely enactment of laws that close a $20 billion budget gap.
"Without the legal authority to close the budget gap, these price adjustments are necessary," Stroman says.
