USPS Warns: We May Hike Prices
'We are loathe to pursue this approach'
By Kevin Spak, Newser User
Posted May 10, 2013 1:28 PM CDT
A first class envelope is shown at a U.S. Post Office in San Jose, Calif., Monday, Dec. 5, 2011.   (AP Photo/Paul Sakuma)

(Newser) – The USPS board intends to "evaluate" the possibility of hiking all of its postage rates, its head said today, admitting, "We are loathe to pursue this approach," according to CNN. But the postal service has been backed into a corner by Congress' refusal to allow it to stop Saturday mail delivery and a 2006 law requiring it to prefund health care benefits for future retirees.

Stamps rose to 46 cents in January. The agency lost $1.9 billion last quarter, despite massive cost-cutting moves—the service now has fewer career employees than at any time since 1966—and a 9.3% jump in package delivery revenue over Q1 of 2012. Of course, actual letter volume continues to drop as email replaces it. "It's extremely difficult to compete with free," USPS' top financial officer said.

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Showing 3 of 97 comments
KooKooforCocoPuffs
May 13, 2013 12:14 PM CDT
"May" hike prices? It's a virtual certainty. Can't wait for the time when it will cost five bucks to mail a simple letter and be told that that's a good deal "under the circumstances." You can't give employees a ridiculous level of benefits and pay—far out of line of national average—and expect to be solvent forever. Also, there is the problem of Congress having sliced the budget of the USPS to near nothing to serve their own ends. The USPS has become a political football, not to mention a poster child for crappy management and customer service. I was harangued one day by a postal employee about the fact that once they got their overtime and budget issues sorted out and ruled upon, if it went his way, he would stand to profit—after overtime, penalties, pension and some very ridiculous regulations and benefits—nearly $750,000 would be owed him. He mopped the floors and washed the windows at a local USPS branch. Something very wrong there, not to mention the USPS is under the government model as opposed to a big business model. Under those circumstances they cannot compete with the big carriers - UPS, Fedex,etc.
NorCalHal
May 12, 2013 5:22 PM CDT
I'd should have a rubber stamp made - so that every time this subject comes up I wouldn't have to type everything over! Before you force everyone, but those that use your service for FREE, to stop using the USPS, get rid of FREE franking for politicians and double the bulk (junk mail) rate. While your at it how about having your employees (whether direct employees or contractors) wear the postal service uniform when they are working?
GoAway
May 11, 2013 7:03 PM CDT
I mail three letters a month, and if I can find a way to do that electronically, I won't be mailing anything. I also try to have all my packages delivered by UPS or FedEx because of the universally bad service we get from the USPS! Let them go broke! Then their employees can learn what it's like to WORK for a living!