Major Parties Agree to Rate Case Plan

Share this content:
The U.S. Postal Service likely will file its rate case settlement proposal with the Postal Rate Commission by Monday, said Dan Foucheaux, chief counsel for the USPS and settlement coordinator, after major mailing groups and companies signed on to the proposal this week.

Twenty-six of the 60 parties involved in the settlement talks have agreed to the increase. Many of the others have not been active in the discussions, Foucheaux said, and are not expected to oppose the plan.

The proposal would increase postal rates 8.7 percent as of June 30. The postal service had wanted the increase to take effect June 2, but pushed that back to June 30 late last month after strong opposition from many business groups.

Groups that have agreed to the proposal include the Direct Marketing Association, the Alliance of Nonprofit Mailers, the Magazine Publishers of America, McGraw-Hill Companies Inc. and Dow Jones & Co.

"The economic situation has changed since the postal service filed its case in September, and the postal service needs more money," said Jerry Cerasale, senior vice president of government affairs at the DMA.

The USPS has threatened to file for a much higher rate increase that likely would take effect in September or October if the settlement proposal were not approved. Cerasale said the postal service likely would seek a rate increase of 12 percent to 15 percent if the settlement did not go through.

"This was unconscionable to us, so we decided to move forward and see if we could get the settlement," he said.

The DMA also decided to go along with the proposal, Cerasale said, after postmaster general John E. Potter said the USPS would not ask for additional rate increases before October if the settlement proposal went through. Potter left the possibility of an earlier increase open a crack, however, saying that a final decision was up to the Board of Governors. That has left some groups wanting further assurances.

"We are on board," said Neal Denton, executive director at the Alliance of Nonprofit Mailers, "but subject to a positive statement by the Board of Governors that they do not intend to file [another rate increase proposal] again until the end of the fiscal year (which is in September)."

Sign up to our newsletters

Company of the Week

USAData helps businesses find new customers and grow their current customers through a combination of data and digital marketing services, and easy-to-use SaaS technology products. We enrich customer data so businesses can more effectively target and communicate with customers, and connect them with their best look-alike prospects through digital and traditional channels. We make it easy through simple, self-serve applications and APIs, as well as through full-service programs managed by our Data and Digital experts. 

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