Summer Postal Rate Increase Approved

[Guest guest]

Get ready for the rate hike folks!

 

Have a great weekend anyway!

 

*Smile*

Chris (list mom)

 

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Summer Postal Rate Increase Approved

http://dailynews.netscape.com/mynsnews/story.tmpl? & table=n & cat=51180 & id=20020322\

1144000113323 & cp=srttnsprt & dpt=main

 

WASHINGTON (AP) - Americans will be paying an additional 3 cents to mail

a letter this summer.

 

The independent Postal Rate Commission on Friday gave its approval to an

unprecedented agreement on postage prices, reached by the post office

and nearly all of the businesses and organizations that normally fight

rate changes vigorously.

 

All that remains now is for the postal governing board to set the date,

probably around June 30.

 

``This decision will allow the Postal Service an immediate influx of

revenue while holding rate increases to a reasonable percentage for

postal customers,'' rate commission George Omas.

 

The approval means a first-class stamp will rise 3 cents to 37 cents,

there will be a 2-cent boost in post cards to 23 cents, and most other

mail charges will also rise.

 

Without the usual opposition, the rate commission was able to give

speeded-up consideration to the Postal Service's request for new rates.

 

Battered by declining business in a slow economy, the post office lost

$1.68 billion last year and was anticipating a $1.35 billion loss this

year after freezing new construction and cutting 12,000 jobs.

 

The agency announced Sept. 11 it would seek higher rates to take effect

this fall.

 

Then the terror attacks, followed by the anthrax-by-mail infections,

socked the agency with hundreds of millions of dollars in additional

costs for cleanup and preventing future mail contamination.

 

Knowing that would plunge the post office into even worse financial

straits, Rate Commission Chairman George Omas suggested the post office

and 60 or so organizations that usually fight it out over rates to reach

an agreement all could accept.

 

In the end all but the American Postal Workers Union signed on to the

deal, which avoided months of hearings and arguments before the agency

and permitted the rapid rate decision.

 

The union, which represents workers who sort mail, argued that the rate

increases offered giant mailers discounts for presorting mail that

exceed the amount the Postal Service would save by not doing that work.

 

The post office responded the contention was fallacious, ``based on

speculation regarding postal revenues, finances and capital investment

plans.''

 

Organizations that would benefit from the discounts defended them. ``The

settlement rates are well within lawful limits,'' argued a group

including the Association for Postal Commerce, the Mailing and

Fulfillment Service Association and the Recording Industry Association

of America.

 

While many that normally oppose rate increases accepted this one, it was

not always cheerfully.

 

Longtime rival United Parcel Service said that while it ``could find

fault with a number of the rates set forth in the settlement,'' it

joined in the agreement to help the post office ``respond to recent

extraordinary events and return to financial stability.''

 

One group of businesses commented that if the case had been fully

argued, its members would have fought for different rates.

 

``The settlement agreement represents, we believe, the best result that

is possible to achieve under current circumstances,'' said the group,

which included the Alliance of Nonprofit Mailers, AOL Time Warner,

Coalition of Religious Associations, Magazine Publishers of America and

the National Newspaper Association.

 

``However,'' the group added, ``the circumstances themselves - the need

for so much additional revenue so soon after the last two rate

increases, based on estimates developed prior to Sept. 11, 2001 -

reflect poorly on the Postal Service.''

 

In addition to the 37-cent rate for the first ounce of first-class mail,

other increases requested by the post office include:

 

Increase the postcard rate 2 cents to 23 cents.

 

A 1-pound priority mail item would rise 35 cents to $3.85.

 

Increases in parcel post, with a 5-pount item costing $4.19 to $7.25

now, depending on distance, would rise to $5.03 to $9.43.

 

A half-pound Express Mail item would jump $1.20 to $13.65.

 

Certified mail would increase 20 cents to $2.30.

 

Insurance charges would go up for most mail, depending on amount of

insurance, but would be reduced for Express Mail.

 

The charge for a return receipt would go up 25 cents to $1.75.

 

On the Net: Postal Rate Commission: http://www.prc.gov

 

U.S. Postal Service: http://www.usps.com

[Guest guest]

In honor of this announcement, I have finally started re-stuffing my

pre-paid/return junk mail envelopes (being sure my name/address or

any codes are removed first) and mailing them back. They may get a

free ride sending me garbage, but they can just pay up and have it

right back. There are pros and cons to this, of course, but I feel

like I'm sending a message back to them to quit sending it to me in

the first place - and if everybody did it, the postal service would

probably quit having to raise our rates all the time.

 

Jonee

 

 

> Get ready for the rate hike folks!

> Chris (list mom)

 

> Summer Postal Rate Increase Approved

 

> WASHINGTON (AP) - Americans will be paying an additional 3 cents to

mail

> a letter this summer.