Written by Donna E. Hanbery | Executive Director

Saturation Mailers Coalition

On December 13, 2011, the Postal Service issued a press release that it had made an agreement with multiple US Senators to delay the closing of post offices and mail processing facilities until May 15, 2012. The same announcement continued that the delay would not stop the Postal Service from pursuing all actions necessary to review facilities previously announced for closure and to take all steps necessary to help the Service reduce costs and increase revenue.

The pressure for the delay came from a group of Senators from states with significant rural geography and ties to postal labor groups. Postal experts commenting on the agreement noted that the Postal Service was presumably promised that the delay would give the Senate time to pass postal legislation. If legislation is not completed by the end of the moratorium on May 15, 2012, the Postal Service could move forward with its closure and consolidation plans.

The Postal Service Senate agreement and press announcement led to a flurry of comments from others in Congress and the Postal Service community. Representative Darrell Issa (CA Rep) and Dennis Ross (FL Rep) criticized the Postmaster General as caving in to political pressure. Issa has introduced a bill that would give a to-be created agency the power to take over the Postal Service, and run the agency as if in a receivership, under circumstances where it was in default on any amounts owed to the federal government. Senator Carper (DE Dem), also an author of a pending postal reform bill, acknowledged the concerns of his fellow Senators about Postal Service plans to cut costs by closing facilities and reducing headcount, but stated it would be irresponsible for Congress to prevent the Postal Service from making the operational decisions it needed to downsize its operations.

Practical commentators stated that the moratorium would only mean a postponement of four to six weeks of time before the Postal Service is free to resume, once again, its announced measures of closing retail and processing facilities to cut costs. Some commentators noted that Postal Service management had little choice but to yield to Senate pressure. The Agreement was reached on the same day that the Senate passed its appropriations bill to pay the Postal Service almost $80M for revenue foregone on free and reduced rate mail. An expert on postal matters, Alan Robinson, calculated that “the delay in closures may increase the Postal Service’s costs by any where from $150 to $450 million.” Others commented that the delay allowed elected officials to tell their constituents they “did something” to stop the Postal Service from downsizing” but speculated the senators would do little to help bridge the gap between the vastly differently proposals pending in the House and Senate. Seasoned cynics and postal watchers predict that the likelihood of this Congress passing any consensus legislation to help the Postal Service in an election year seemed dubious at best.

Meanwhile, the Postal Service has stated in industry meetings and in filings with the Postal Regulatory Commission (PRC) that it will continue all necessary steps required for the review of post office closures during the interim period. For cases where a closure was previously announced, and an appeal before the PRC is pending, the Postal Service asked the Commission to continue adjudicating appeals as provided in its schedule for each proceeding.

Donna E. Hanbery, Executive Director

Saturation Mailers Coalition

33 South Sixth Street, Suite 4160

Minneapolis, MN 55402

(612) 340-9350 Direct Line

(612) 340-9446 Fax

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