Hughes Electronics Corporation

            Aviles Engineering Corporation

            Texwood Furniture

The two co-chairs have distinguished themselves in their respective industries. Pearce had a prosperous career at General Motors before rising to his current position as chairman of Hughes Electronics Corporation (a subsidiary of General Motors) that is best known for Direct TV.

Johnson is vice chairman of Perseus, LLC, a merchant banking and private equity firm. For the previous 10 years, he worked at Fannie Mae, including serving as chairman and CEO. Like Pearce, Johnson serves on numerous boards, and is chairman of the John F. Kennedy Center for the Performing Arts.

The commission doesn't submit its report until July 31, 2003, so no one can predict its impact on the Postal Service. But even the appointment of this commission should hearten those in the print/mail industry. For several years, we've witnessed Rep. John McHugh (R-NY) and senior members of the Postal Service attempt to pass postal reform legislation. Those bills were killed in congressional subcommittees, away from the public eye.

A presidential commission will bring public scrutiny to the issue of postal reform. The commission isn't front page news yet, as it's been overshadowed by global and military events. But the mainstream media has begun to give the subject more attention. (A recent story on page B1 of the Wall Street Journal, for starters.)

At the press conference announcing the executive order, Postmaster General Jack Potter expressed his support for the commission. Potter noted that the Postal Service has already taken aggressive steps to avert a postal crisis, reducing expenses last year by $2.8 billion. He also pointed out that establishing a presidential commission is consistent with the Postal Service Transformation Plan.

A Fast Track to Privatization?

At the press conference, administration officials declared, "Our goal is not to privatize the Postal Service." And they later stated that the commission "is not a stealth project to privatize the Postal Service." In his comments, Johnson said that he and Pearce have no bias on the issue of privatization and that their initial focus is to listen and learn in the hearings to be held around the country. However, past experience usually contributes to a certain viewpoint, whether we admit it or not.

Johnson's tenure at Fannie Mae is noteworthy. Fannie Mae is a commercial government-sponsored enterprise (GSE): an entity created by law for an important public policy purpose. Established by Congress in 1938 to bolster the housing industry in the aftermath of the  Great Depression, Fannie Mae was originally funded through the U.S. Treasury. In 1954, Fannie Mae became a mixed-ownership (combination of public and private) corporation. And in 1968, all federal ownership was removed, and Fannie Mae was transformed into a private corporation.·

I'm not being an alarmist. I'm simply pointing out the facts. For years, conservative pundits have called for the privatization of the Postal Service, arguing that competition would make the Postal Service more efficient and keep prices stable and that universal service wouldn't be threatened because carriers like UPS and FedEx deliver to every household today. However, these carriers charge more for residential deliveries and have raised rates every year, even while postal rates have remained stable.

Another argument for privatization is that over 90% of the mail carried by the Postal Service is business-related bills, payments and direct mail sent between the business and the consumer. However, this mail maintains an important link in the economic chain, allowing all citizens to participate in society, regardless of location or wealth. And universal service with universal rates levels the playing field across geographic and economic lines.

In the Transformation Plan, the Postal Service proposed a better option a Commercial Government Enterprise (CGE), a government-owned enterprise that operates more like a business in the marketplace. By becoming a CGE, the Postal Service would manage itself like a commercial company but wouldn't alter its mission of universal service. This is the right direction for the Postal Service.

What Can You Do?

With only seven months to prepare its report, the commission probably won't produce a detailed plan for the future of the Postal Service. I expect they'll submit comments on the existing Transformation Plan and plans submitted by other parties, like Rep. McHugh and the CATO Institute. The commission will include broad suggestions on the direction the Postal Service should take, with general recommendations on issues like universal service and post office closings. The commission may even submit legislation to Congress.

Because of this commission, we in the mailing community have the attention of the public and the media. Take advantage of this opportunity. Stay up to date on the published testimony of industry leaders. Inform your management team of any reports or comments released by the commission. They can be reached at www.treas.gov/offices/domestic-finance/usps. Be prepared to explain how any changes will impact your company.

Write and call your congress members and senators with your professional opinion on the commission. Demand that they take a stand on this issue. Respond to newspaper editorials with a "Letter to the Editor" and become part of the debate. If the commission holds a hearing near you, attend and ask to give testimony.

The President's Commission on the Postal Service will be a watershed moment for our industry. Don't sit on the sidelines and let others dictate your future.

Mark M. Fallon is president and CEO of the Berkshire Company, a consulting firm specializing in mail and document-processing strategies. For more information, visit www.berkshire-company.com.