House Committee Grills Henderson, USPS

Share this content:
WASHINGTON -- Postmaster general William J. Henderson answered many tough questions from the House Committee on Government Reform yesterday and offered more bad news for direct marketers.

Committee members -- including chairman Dan Burton, R-IN, Rep. Danny Davis, D-IL, and Rep. Bob Barr, R-GA -- asked Henderson whether a rate increase of 10 percent to 15 percent could be avoided next year, whether cutting back on Saturday delivery is a possibility and why the U.S. Postal Service is predicting a $2 billion to $3 billion loss this fiscal year.

Henderson, who appeared nervous, basically delivered more bad news.

When Burton asked whether there was any way the agency could postpone the rate case for the benefit of small businesses that could be forced to fold, Henderson said he has asked deputy postmaster general John Nolan to find ways to avoid a high rate increase. "But we are in a vise right now and we are seeing declining volumes, so that's a problem," he said.

He also said the USPS is launching an internal study "to see how much Saturday delivery costs us." Lawmakers didn't seem pleased with the notion.

Henderson said he understood that many groups would be hurt by eliminating Saturday delivery, especially newspaper mailers, who rely on Saturday delivery, and remittance mailers, who believe that people receiving bills on Saturday are more likely to pay them that day than other days of the week.

As for why the USPS is facing a loss of $2 billion to $3 billion next year, and maybe more, Henderson said the agency is a victim of the slowing economy, declining demand and a lack of postal reform.

Speaking passionately about reform, he said, "The biggest disappointment I experienced during my time as postmaster general was that we didn't get postal reform passed."

Sign up to our newsletters

Company of the Week

Brightcove is the world's leading video platform. The most innovative and respected brands confidently rely on Brightcove to solve their most demanding communication challenges because of the unmatched performance and flexibility of our platform, our global scale and reliability, and our award-winning service. With thousands of customers and an industry-leading suite of cloud video products, Brightcove enables customers to drive compelling business results.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above