From: Mailers Council Executive Director Robert McLean

For those who missed it, today's Postal Service media event with Dick
Strasser and Tom Day was a collection of confusing, circular comments and
more than a few misstatements. I've taken calls from several reporters who
left the briefing more confused than when they arrived.

In the short briefing, postal officials warned that passage of S 662 would
guarantee one last, huge rate case under current law, followed by years of
additional high increases. Questions about how such increases would be
possible under a price cap were answered by confusing rhetoric and warnings
about the Statement of Administration Policy (rather than the bill the
Senate will, we hope, soon consider). Strasser warned, "I'm not sure our
mailers and employees understand the full ramifications of these bills."

Day, responding to a question about whether postal officials were violating
the laws prohibiting them from lobbying, stressed that he wasn't even close
to such a violation, but instead was fulfilling an obligation to educate the
Senate and correct misimpressions on the Hill. Most notably, he wanted to
let the Senate know that not all the postal employee groups support S 662.
The APWU, which he said was the largest postal employee union, opposes the
bill. APWU President Bill Burrus, Day stressed, believes the legislation is
flawed and "not in the best interests of the members he represents." (And
that is wrong; last year the NALC became the largest union because most of
the 100,000 postal jobs eliminated belonged to APWU members.)

Late today Sens. Collins and Carper reacted to postal letters, news releases
and media statements with the following statement. As you'll see, they are
not happy. The Postal Service has damaged its relations on the Hill in a way
that may be impossible to repair, at least with the current oversight
committee leadership.

*****

For Immediate Release Contact: Jen Burita (Collins) 224-9229
January 26, 2006 Bill Ghent (Carper) 224-8395


SENATORS COLLINS AND CARPER: THE POSTAL SERVICE HAS SUNK TO A NEW LOW

WASHINGTON, DC-Senators Susan Collins (R-ME) and Thomas Carper (D-DE), are
disputing false, misleading, and inaccurate claims made today by the US
Postal Service regarding S. 662, the Collins-Carper postal reform
legislation. In addition, the Senators today said that recent comments made
by the postal service are confusing and troubling given the fact that
Postmaster General, John Potter testified before the Homeland Security and
Governmental Affairs Committee in support of the bill.

On April 14, 2005, Potter said, "The escrow requirement established by
Public Law 108-18 should be eliminated and the military service retirement
payment obligation returned to the Dept. of Treasury. In its place, we
support the creation of a payment stream to prefund retiree health benefits.
The Postal Accountability and Enhancement Act, S. 662, addresses both of
these concerns." Senators Collins and Carper also pointed out the following
inaccuracies about the Postal Services claims:

* With their latest release, the Postal Service appears to have sunk to a
new low.

* The Postal Service claims that S. 662 could lead to a 20 percent increase
in stamps. In reality, there is nothing in this bill that would lead to rate
increases. In fact, S. 662 includes a strong rate cap that would prevent the
Postal Service from raising rates each year by more than the Consumer Price
Index. It also requires that the Postal Service maintain "predictability and
stability" in rates. Finally, it includes language that would shore up the
Postal Service's finances and keep rates stable for years to come by
permanently fixing its flawed pension formula.

* The Postal Service at one time was saying repeatedly that they needed the
reform in our bill to head off rate increases. Without the reforms in our
bill, postal rates will skyrocket as the Postal Service is forced to make
higher pension payments. The lack of a rate cap and strong oversight will
allow the Postal Service to push all of these costs onto its customers.

* The Postal Service claims that S. 662 would force it to "absorb retirement
benefit obligations for former military personnel who now work for USPS but
did not incur those benefits under the Postal Service's employment." This is
completely false. We've fought side by side with the Postal Service for
years to return the obligation for military pensions back to the U.S.
Treasury. Our bill includes language ensuring the postal ratepayers will not
be saddled with these costs. It's disappointing that the Postal Service is
now distorting our position and blatantly misleading our colleagues and the
public on this issue.

* They complain that S. 662 would make them pre-fund its retiree health
obligations. We do this because the Postal Service currently owes its
employees and retirees upwards of $45 billion in health care benefits. They
are largely ignoring these costs, knowing that future ratepayers or even the
taxpayers will pick up the tab when the bills come due. The reforms in our
bill are hardly an unfair burden. Rather, they force the Postal Service to
be more financially responsible.

* They suggested that unions do not support this legislation. This is false.
S 662 had been endorsed by the National Assoc of Letter Carriers, the Rural
Letter Carriers Association, both postmaster associations, and the
supervisor associations.

In addition, the Senators released this statement last night:

"We are extremely troubled and disappointed that at the very last minute,
the Postal Service is attempting to block action on our bill - the first
attempt at modernizing our postal system in more than three decades. While
no legislative product is perfect, we believe this bill, which is the
product of years of debate and compromise among a number of interested
parties, gives the Postal Service the tools necessary to survive and thrive
in the 21st Century.

"We're also outraged that the Postal Service would mislead Senators about
what's in S. 662 in an effort to block it. Nothing in the bill would lead to
rate increases. In fact, S. 662 includes a strong rate cap that would
prevent the Postal Service from raising rates each year by more than the
Consumer Price Index. It also requires that the Postal Service maintain
"predictability and stability" in rates. Finally, it includes language that
would shore up the Postal Service's finances and keep rates stable for years
to come by permanently fixing its flawed pension formula. It's ironic that
the Postal Service - which has been forced to raise rates 4 times in 5 years
because of its inability to control its costs and respond to the new
economic landscape - is accusing us of putting the health of the postal
system at risk.

"The Postal Service is the only entity out there right now standing in the
way of progress on this issue. We join the dozens of groups who've endorsed
S. 662 in urging the Senate to move this process along and to put us on the
path toward reforming the Postal Service for the 21st century."

*****

Mailers Council
2001 Jefferson Davis Highway, Suite 1004
Arlington, VA 22202-3617
p 703-418-0390
f 703-416-0014
www.mailers.org