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Direct Mailers May Face Postal Rate Increase

Postmaster General Jack Potter told attendees of the National Postal Forum that the USPS will file a case for a proposed rate increase as early as later this month, according to Multichannel Merchant. The increase will likely be only a single-digit percentage, he said, but it’s necessary because the Postal Service cannot cut costs fast enough to offset inflation. He pointed out that, while mail volume reached a new high of 212 billion pieces in 2005, more than 100,000 jobs had been eliminated.

Potter was joined by the president of the USPS Board of Governors, Jim Miller, to talk about postal reform. Miller said that the Board feels it is “crucial to negotiate an equitable contract with postal unions so that an outside arbitrator would not be granted the right to choose the fate of reform.”