Association for Postal Commerce
"Representing those who use or support the use of mail for Business Communication and Commerce"
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JUST WHAT THE USPS DOESN’T NEED

The following is a postal perspective by Reader’s Digest postal consultant and former PostCom Chairman Cary Baer about the process by which appointments should be made to the Postal Regulatory Commission and the governing board under the new postal law. The views expressed are solely the author’s.

A couple of weeks ago I was sitting in my office thinking about the current quandaries facing the Postal Service. The most prominent among them is the weak U.S. economy and its resultant impact on mail volume. Volume continues to decline, most significantly First-Class Mail. First Class is getting a double whammy; the economy and the unrelenting movement of more bill presentment and bill payment to the Internet. This volume decline, together with continued population growth and the Postal Service’s universal service obligation, means the Postal Service is delivering less mail to more locations. Basic economics tells us this trend just doesn’t compute. Indeed, the Postal Service has indicated that they will have lost more than $2 billion in the just- ended FY 2008.

As luck would have it, at this most unpropitious time, there is a vacancy, a Democratic seat, on the Postal Service’s Board of Governors [BOG]. Into this breach the Bush Administration has nominated, for the BOG seat, an individual who is the elected property assessor from Washoe County, Nevada. That’s right, an individual, without any obvious experience in dealing with large corporate issues, including labor/management, technological changes, marketing, corporate finance, and numerous public policy issues.

I’m sure that this BOG nominee has a stellar professional and personal background and has passed muster with Senator Harry Reid, the Senate Majority Leader, also of Nevada. In another time, perhaps this BOG nominee would be approved by the Senate as a favor to whomever is behind the nomination. But this is a different time. The mailing industry and the Postal Service need a board member who can provide relevant advice, direction and oversight in this difficult and trying time. It’s been suggested that to fight the nomination, the mailing industry needs to provide an alternative to the nominee. I reject that contention. By law this is a political appointment. I’m suggesting the political process be restarted to find a qualified nominee.

A study conducted a number of years ago by a joint Postal Service mailing industry task force found that the mailing industry accounted for nine million jobs and nine percent of the GDP [gross domestic product]. The Board of Governors oversees the USPS, which is the most important element underpinning this industry. Can we please find someone qualified for this role?

I trust the mailing industry will unite to petition the Administration to withdraw the nomination, or as an alternative, urge the Senate to reject the nominee.