Postage Rate Increase and Worksharing

Postage Rate Increase Continues Disturbing Trends "... There are some troubling aspects of the most recent rate case:

* Although the Postal Service price structure trims some of the excess, discounts for “workshare” mail continue to exceed the costs the Postal Service avoids when mailers perform some mail-sorting duties themselves. By the Postal Service’s own calculations, workshare discounts for 3-digit and 5-digit automation letters and 3-digit automation cards exceed the costs avoided.

* The Postal Service calculations understate the excess. USPS uses a calculation method that was rejected by the Postal Regulatory Commission during the last rate case. The Postal Service should use methods and data that appropriately measure the costs it avoids when mailers engage in worksharing — and then set prices accordingly.
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[Reference: www.apwu.org]

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