Latest News and Highlights
OFFICE OF INSPECTOR GENERAL:
- Peeling the Onion - the Real Cost of Mail. When Congress passed the PAEA in 2006, it established a new set of regulatory incentives designed to increase the U.S. Postal Service’s efficiency. As the PAEA’s 10th anniversary approaches, we revisit postal cost trends to evaluate how well the Postal Service has been managing its costs.
The number and cost of workhours are down, even with the increase in delivery points. The less expensive noncareer employees have increased by 3 percent each year on average since 2006. Prefunding of future retiree health benefits can cause labor cost to appear as a disproportionally high percentage of the Postal Service’s total cost. The Postal Service has actually decreased its labor expenditures by about $10 billion since FY 2006, when adjusting for inflation and removing pretending. Future Postal Service success hinges upon providing excellent service and making needed capital expenditures to modernize its existing network’s capabilities to support 21st century postal demands. The Postal Service must continually seek to improve customer service and make appropriate capital investments to fully integrate its network with the digital world. USPS stakeholders and management need to develop ways and means for generating adequate revenue so that the Postal Service can build for the future.
POSTAL REGULATORY COMMISSION:
- RM2016-9 Order No. 3237 - Order Holding Petition in Abeyance
The Postal Service’s filing requests the Commission to “clarify its position . . . as to which aspects of the current market-dominant regulatory structure fall within the “‘system for regulating rates and classes for market-dominant products established under [Section 3622]’ . . . and thus are subject to potential modification or replacement.” The Postal Service requests the Commission address this “threshold issue in advance of the beginning of the review proceeding, to allow parties to efficiently prepare for the review and ensure it can be conducted in a timely manner . . . . ”
The Commission finds the Postal Service’s Petition premature, and it will be held in abeyance until after the 10-year review docket is established later this year, and the Commission determines it is appropriate or necessary to define the scope of the “system . . . subject to potential modification or replacement” and its authority in the context of the 10-year review proceeding.
Hear ye! Hear ye! The latest PostCom postal podcast on some of the issues that will be a part of the Postal Regulatory Commission review of the PAEA rates process has been posted on the PostCom web site.