Rate Case Settlement Decision Expected This Week

Share this article:
Officials involved in postal rate case settlement negotiations expect a decision by the end of the week.


The settlement proposal calls for an average 8.7 percent rate increase to be implemented in June. Without the settlement, the next postal increase likely would occur in September or October.


If industry businesses and trade groups do not approve the settlement, the postal service has said it will ask for a higher rate increase.


Meanwhile, a joint House-Senate committee may reach a decision today on a defense appropriations bill that includes up to $600 million for the USPS.


The USPS wants the June date because it estimates it will raise an additional $500 million for each month of higher rates. If industry businesses and trade groups do not approve the settlement, the postal service has said it will ask for a higher rate increase.


The postal service's Board of Governors set a Dec. 28 deadline for a decision on a settlement. Participants in the discussions include the Direct Marketing Association, ADVO Inc., McGraw-Hill, Postcom and the Alliance of Nonprofit Mailers.


Share this article:

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Direct Mail

Ricoh Strikes a Blow for Multichannel on a Small Scale

Ricoh Strikes a Blow for Multichannel on a ...

The company introduces a creative service to help print shops augment direct mail with email and pURL landing pages.

Delivered: Insurance Mailers

Delivered: Insurance Mailers

What's in our mailbox this month: Insurance mailers. See which ones cover all their bases—and which ones, not so much.

Marketing Challenge: Defending Direct

Marketing Challenge: Defending Direct

The new CEO wants to cut direct mail because of postal increases—even though DM is great for ROI. What would you do? Email your answers to ginger.conlon@dmnews.com by June 30 ...