Post Office Proposes (another) Stamp Rate Increase (because of gas costs)

[UpInArms]

http://news.yahoo.com/news?tmpl=story&cid=513&e=4&u=/ap/20060503/ap_on_go_ot/postal_rates

WASHINGTON - The Postal Service said Wednesday it wants to raise the price of a first-class stamp by 3 cents — to 42 cents — and proposed a "forever" stamp that people could use as hedge against future rate increases.

The changes would take effect in the spring of 2007 if approved by the independent Postal Rate Commission.

<snip>

Postmaster General John E. Potter said the agency would not be making a rate change if it were not necessary.

"The Postal Service is not immune to the cost pressures affecting every household and business in America," he said.

For example, each penny increase in the price of a gallon of gasoline costs the post office $8 million, and payroll, health expenses and other costs also have been rising.

...more...

[ayeshahaqqiqa]

1. If you could afford it

you could get the "forever stamps" in quantities enough to last forever.

[sarcasmo]

2. Pay all your bills online and do away with the U.S.P.S.

One of the poorest run companies in the country.

[Maddy McCall]

5. Please explain.

:shrug:

[CountAllVotes]

11. you can pay your bills online

You can do this with credit cards, etc.

You can have it set-up so they charge your credit card automatically every month rather than write out a check and mail it to the creditor. I have a 1.25% cashback credit card that gives you the 1.25% at the end of every billing cycle so I actually make money and save time, effort and money being I don't have to spend much on stamps!

You can do this with utility companies, phone companies, power and water companies (if you happen to have a home) and also with many other places like your auto insurance, etc.

.....

btw ...

I thought the U.S. Postal Service had a surplus at the end of 2005 if I am not mistaken!

:kick:

[Maddy McCall]

13. Still doesn't answer my question.

Why is the postal system so "poorly run?"

[Tandalayo_Scheisskopf]

23. From my old friend...

Who was a rural carrier, I learned that one of the biggest reasons they have so much trouble is poor, incompetent management, from the postmaster level all the way to the top.

Used to be that the job of postmaster was more or less a well-paid but largely honorary position. Many still treat it as such. Disengaged, not showing at work for days and even weeks on end, ad nauseaum.

[Maddy McCall]

27. My father was a rural mail carrier for nearly 4 decades.

He only retired a couple of years ago. He's still close to all of his fellow employees...he's related no such similar opinions from his friends, and he certainly doesn't hold the same opinion as your friend.

Sure, some supervisors are assholes. But if a postmaster doesn't show up for work, he or she can be canned--perhaps your friend should consider reporting his postmaster to one of the district supervisors.

Let me tell you how diligent the postmasters are with whom I am acquainted. After Katrina, we had NO power. The postmaster here took her own money and bought a generator, and drove 100 miles to buy gas out of her own pocket--the day after Katrina, so that she could provide lights for her employees to work, so that they could sort and deliver mail.

If your friend knows of a postmaster who doesn't show up for "days and even weeks on end," it is the duty of your friend to report that postmaster to his supervisor--and supervisors and postal inspectors are easy to find, since they frequently stop in unannounced at post offices, to make sure that everyone is observing protocol.

[Born Free]

28. 3 billion in escrow

The USPS has 3 billion dollars in escrow that bush will not release because it makes his deficit look 3 billion less - they also did something with military retirement not too long ago. There are many veterans that work at the post office. I am not sure of the deal but it has something to do with the vets that get some types of military retirement, their military retirement is paid by the USPS so the the military costs are less, once again this offsets some of the bush deficits. The GOP has been working to eliminate the postal service for many years, the USPS currently has Fed Ex doing packages, the only thing the postal service does is take it from the local office to your door to save Fed Ex costs. There was another company doing it but it costs too much so they switched to Fed Ex. It costs the postal service millions of dollar subsidizing them so they could eliminate postal facilities. The USPS is being privatized, they are doing it slowly as not to alarm the public, facilities are being closed, some employees are being told them must go to another facility ( long distances from their home) or quit. The goal is to completely eliminate the USPS in a timely fashion that does not alarm the general public. The most profitable part of business, package delivery has been given away.

Most people think of the post office as the little place where you send and receive your mail, but the heart of the postal service is the distribution centers where they actually sort the mail.

[Occulus]

30. They're busting the unions in the process

The USPS now utilizes "casual" employees. These do exactly the same job as full-time employees, except that they regularly work casuals up to 12 hours (sometimes more), pay them only half as much as full-time employees make, change their schedules at the drop of a hat, pay no sick leave or vacation time, sometimes do not pay them in full, etc., and etc.

If you've been noticing a drop in the level of service you usually get from the USPS, it's because it's exploiting the casuals to the point that the casuals DO NOT CARE about getting the job done right. Often, casuals are completely untrained, and are thrown alone on automated equipment designed for two or more people, for hours at a time.

USPS is, to be quite honest, the most fundamentally mismanaged company I've ever seen.

[Lance_Boyle]

7. no effin' kidding!

How long has it been since the last increase? Not even a year, has it?

[Maddy McCall]

12. And how much has gas gone up in that time?

They pay the same amount for gas that you and I do. They are independent of the federal government, and are supported solely on the postage we pay. When the price of gas goes up so vastly, of course they are going to have to increase the stamp price.

And it's still pretty amazing that you can put a 39 cent stamp on a letter in Los Angeles and it will arrive in Boston in less than a week.

Even at 42 cents, it's a good deal. And it's one of the few purely American institutions that we have that the Republican-led government hasn't tried to contract out and privatize.

[katmondoo]

14. I do not know why you say that

I prefer the US Post Office over the thieving UPS and Fed ex leaves me cold. When I send a package that must be there overnight it is and a lot cheaper than UPS. I stopped using UPS years ago. I never lost or had a late package. I depend on these mailings to be on time for my business.

[Maddy McCall]

17. Yes. You can't email legal papers, packages, and Christmas cards.

And if the people in this thread think that the USPS increase is unnecessary, just wait until they see the increases at UPS and FEDEX.

[DUHandle]

18. The Post Office is a Value and an Asset

U.S.P.S is the least expensive way I have found to ship a package.

I used to use U.P.S. and when I discovered the differences in rates I had to kick myself for not doing any more research on shipping. I've found the difference in delivery times to be within hours.

The cost of a stamp is less expensive to delivery something under an ounce than driving most anywhere.

Getting rid of the U.S.P.S, as well as being a neocon dream that begun during the Reagan era, also regrades America to the level of a Third World Nation that can't afford a postal service.

Understandably, the volume of service dropped with online bill payment, but no call lists will help it rise.

There's also the matter of providing jobs, which pay a living wage and offer tolerable benefits.

Last time I looked, the Post Office was self supporting or nearly self supporting, so I really can't see a big deal about a postage increase.

I also can't see the calls to kill the post office, unless one works for a private carrier and is afraid of cost effective competition.

[Maddy McCall]

19. It is completely self-supported.

Thank you for your brilliant post.

My father was a rural letter carrier for over 30 years. I know the workings of the postal service, and it's a GOOD THING. If it were to disappear tomorrow, the people in this thread who wish its demise would be back here posting their anger about that, too.

[Blue_Tires]

35. well said n/t

[AndyA]

3. This is just the beginning of so many things going up in price.

Fuel costs touch literally everything in our lives. There will be an across the board increase in prices if oil remains high, or goes higher.

This is almost a new tax on Americans, because it hurts everyone, especially those who already have strained budgets.

[0007]

4. But....but.....but we have such a strong economy so why worry?

We also have very low unemployment.....argh!!

[Jivenwail]

10. Couldn't prove it by me

I've been unemployed for 8 months, unbelievable as that sounds. It's been a nightmare for me on so many levels. Unemployment ran out at end of February and I've had to scrounge around for temp work that puts me at the "underemployment" level because the jobs pay squat.

Strong economy my cute ass...

[AndyA]

15. I hope things get better for you soon.

I know a few people in similar situations. They've been unemployed for so long, they don't count any longer. The fact they are still unemployed, or work part time or on a temp basis, doesn't count any longer. Of course, it does to them, but not for purposes of reporting.

People have been living on credit cards, home equity loans, and draining savings accounts for a long time. This cannot last forever, and when the bottom falls out, it will be a hard fall. Bush will likely blame Clinton for that, too.

Sending good thoughts your way for a new opportunity to present itself to you soon.

[0007]

20. I know the feeling. Been there myself a time or two.

Here's hoping things turn around for ya.

[area51]

29. "...unemployed for 8 months, unbelievable as that sounds."

For anyone who's been unemployed in this dying economy, it's very believeable. From reading DU, average unemployment time is between 1-5 years. Most of us don't have 1-5 years worth of money set aside for food, rent/mortgage, etc. There is no booming economy.

[Maddy McCall]

6. I don' t think it would ever be a good thing for the Postal Service to...

disappear.

[taught_me_patience]

8. It couldn't be because of horrible mismanagment,

horrible service, or the simple fact that snail mail is becoming obsolete? Of course its gas prices!


:sarcasm:

[Maddy McCall]

16. It IS because of gas prices.

Why wouldn't it be? Doesn't the postal service put mail in a gas powered vehicle and deliver it from one point to the other?

[taught_me_patience]

21. good management absorbs these costs as much as possible

before passing it to the consumer. If fuel costs were so important to the usps, then they should be hedging their fuel costs (much like SouthWest Airlines)! Or they should be trying to save money in other areas to help offset the rising gas prices. They have a monopoly, so they have no incentive to do this.

[Maddy McCall]

26. Maybe a 10% increase in two years...but we are talking about a...

50%+ increase. And if you think that you won't pay higher fares, related to higher gas prices, on Southwest Airlines in the very near future, you are much more confident in Southwest than I am.

USPS certainly has no monopoly. They have competition, in the form of UPS and FedEx.

In which "other areas" do you propose that USPS should be trying to save? Certainly you don't advocate reducing postal employees' wages, or cutting their retirement or insurance, do you? Maybe you think that they can use cheaper adhesives on their stamps? Or use cheaper boxes or envelopes for their Priority Mail service?

Let's hear some real solutions!

[Occulus]

32. How about making management follow the damn contracts it signed

Postal management COSTS USPS money. Case in point: casuals-in-leiu-of. ANYONE involved in the USPS or the APWU will know what I'm talking about. If they don't, they're not paying attention very well, or their local isn't making as big an issue out of it as it ought to!

Our contract says some very interesting things about casuals. Among those things is when and how casuals can be used in the workforce. As I understand things, casuals are supposed to only be employed during the November/December "exception period", a time when nobody is allowed vacation time, sick leave use is frowned upon more than at other times, and a few other things.

Again, as I understand what's happened, USPS has had to fork over millions of dollars- in some cases above ten million- to settle grievances brought about by its abusive use of tyhe 'casual workforce'. Locals in (I think) PA, MI, and a couple other places have received settlements for their members amounting to thousands per employee, all because management insists upon refusing to honor the contract as written.

Postal management is a fucking nightmare. And I will state, without any sort of doubt or question in my mind, that quite literally everything "bad" about the USPS is the result of utterly incompetent management from the bottom to the very top. It is pervasive, it is institutionalized, and it is a very fundamental problem for the USPS.

There are far too many managers, and most of them seem to be concerned more about attendence than performance. Another thing: every supervisor must be obeyed, even if in contradicts what we've been told by another supervisor- even if that second supervisor is that day in charge of a diferent area than the one in which you're working. "Turf wars" are a constant battle, the latest in my building being we're no longer allowed to go out onto the loading dock to get our own work for our own areas. No, that's the mailhandler craft's "space"- and they get paid extra for us even stepping into their area.

The associate offices are a little better, from what I'm told by people who have worked in them... but not by very much.

Every problem associated with USPS is the fault of postal management. The employees in my building and elsewhere are in general agreement that, were it a private company, most of postal management would be fired by the end of the month.

[DUHandle]

31. How the U.S.P.S. can help save America from dependence on Foreign Oil

http://listserv.repp.org/pipermail/bioenergy/1998-September/007036.html

According the above, they are starting already and there is another good opportunity, simply, switch delivery vehicles from gasoline to E85 at larger post offices where there are refueling facilities.

So far as hedging fuel costs like Southwest, the good time $26 per barrel fuel costs they enjoy will end 12.31.06: insightful work, I’ll freely admit, although what Southwest did is the exception and not the rule.

[enlightenment]

22. You must have had some horrible experiences with the

post office. My sympathies.

I guess I've been very fortunate, because I have never had a lost letter or package, never had to find the 'central receiving station' because they wouldn't deliver my package to my door, never worried that my bills and personal mail wouldn't reach their destination. My mail carrier is a real person, who has a real job that provides a decent wage and real benefits -- which is something we can all hope for. She's a very nice person, as well.

As Maddy has pointed out so well, the service for the price is more than reasonable. I probably spend $10-$15 a month on postage and mailings, if I include packages and stamp purchases. Some months are closer to $3-$5.
My ISP costs considerably more than that, and they won't help me catch my cat when he escapes into the street.

I like the USPS.

Still, I'm sorry you have had such bad experiences.

[Duer 157099]

9. "The Forever Stamp" -- learning from Bush's deficit spending

I mean... wouldn't this eventually catch up with them? I can see people selling these on ebay...

Or maybe they just think armageddon will wipe us all out before any of that happens (the Bush plan)

Or the government will bail them out (savings & loan)

Or they'll go back on their promise to honor them "forever" (like airline pension plans)

[zann725]

24. Every time postage increases, I've asked local P.O. employees if recent

wage increase for them was the cause? Each time, they've laughed heartily at THAT one!

Agreed...the cost of rapidly-rising gas costs COULD account for PART of THIS raise, but generally speaking the other increases...for what did THEY go?

Has anyone noticed all the P.O. "marketing" gimmicks at their local P.O.'s recently, or is it just locally here? At least around here, the P.O.'s now have at least 10 different colored/designed bubble-envelopes, at least 10 different stuffed little "bears" with recently-issued "Postage Stamp Designs" embroidered on them, etc., etc. The degree of this marketing, at least at local post offices the last few years, is absurd. Each time I see such fancy mailing envelopes, or decorated mailing boxes, or stuffed "postage" bears, I immediately think...
"If ONLY the P.O. officials had taken even PART of the money it took to design and manufacture these "marketing gimmicks"...including the zillions of new postage stamp designs they issue each year... and gave EVEN a portion of this cost to all the HARD WORKING, not-often-thanked P.O. workers in the form of a raise...

On the issue of the HUGE multitude of newly-designed postage stamps each year...who exactly profits from this...or even cares...as long as postage bought is "valid?" The cost of the design & manufacture of even a couple of these "newly-issued stamps" I'm sure FAR exceeds the salary of a dozen P.O. carriers!

I for one am daily in awe, and greatly thankful for the efficiency and hard work of the many postal workers who I forever find it mind-boggling how they get ALL that mail from one point to another continuously, efficiently, and in a timely manner. My grateful thanks to them, and wish that THIS YET- ANOTHER postage hike would even PARTLY go for a pay and benefit hike for them. If only....

[Occulus]

33. Dental coverage would be nice.

As it is, we have to get our union's dental plan, which we cannot actually use- at all- for six months after we sign up.

No letters of warning for parents who have epileptic kids would be nicer (yes, that actually happened). Honoring FMLA certifications would be nicer yet.

I would have loved for my FMLA certification to have been honored when my dad was dying. I got a letter refusing the request... some days after his funeral.

[robcon]

25. Gas prices have little to do with the request for an increase, IMO.

The problem with the post office is the severe decline in first class mail that is not offset by the steady business in third class mail.

Over the years, faxes, internet billing/payment, and the impatience/cost of waiting for a letter vs. the immediacy/no cost of email have led to declining volume in that segment. The Post Office has a lot of fixed costs, and finds it difficult to keep overheads, labor and other costs in line with revenues.

"... And since first-class mail has long made up over half of USPS' revenues , which hit $69 billion last year, fears are growing that it's only a matter of time before total revenues start to shrink. If so, the ever-growing tide of discounted junk mail won't be sufficient to buoy USPS. ..."
http://www.businessweek.com/magazine/content/05_15/b3928015.htm

[TexasLawyer]

34. Thank goodness there's no inflation...

no inflation... no inflation... no inflation...

[Blaze Diem]

36. Could We Have A Raise In Minimun Wages Please ( To Offset Gas Prices)

Prices have risen everywhere due to high gasoline costs.
Except our ability to pay for the increases.
One job-holders now need two...two need a third...bla bla bla..

Do American workers also have the right to ask for a reasonable wage increase due to the effects of higher gasoline costs?

Time to push for wage increases..(to offset higher gasoline prices)

[Megahurtz]

37. EVERYTHING'S Going Up

because of stupid gas costs.:(