Senior USPS management has come out against major postal reform
legislation that it worked with senior lawmakers to draft, saying
that it believes Bush administration demands to fund military
retirement costs would be attached to the bill in conference,
and that a manager’s amendment wouldn’t do enough to give it
promised flexibility.
The Office of Management and Budget issued a policy statement
last summer threatening a veto if responsibility to fund military
pensions of postal employees were to return to the Department of
Treasury, among other measures USPS opposes, and last week Sen.
Jeff Sessions, R-Ala., had placed a hold on the bill.
The Postal Service said in a statement that the bill grants a new
postal regulatory commission broad “authority to override
practically any operational decisions” it makes, and that no one
entity would be accountable in such a divided system.
“Under current law, the Postal Service has managed to keep the
cost of postage below the rate of inflation,” said Tom Day, senior
vice president for government relations.
“But this bill not only strips the Postal Service of much of its
management authority but almost guarantees a hefty rate increase,”
he said, adding that postage rates may need to go up 20 percent
if it is ordered to pre-fund retiree health benefits and retain
a $27 billion obligation to fund military retirement benefits.
USPS already raised rates in January to collect $3.1 billion
needed for an escrow account.
The Postal Service’s Board of Governors also wrote the full
Senate expressing opposition to the Senate bill, and expressed
similar concerns about the House version passed in 2005.
In the letter from senior management addressed to Senate Homeland
Security And Governmental Affairs Committee chairman Susan Collins,
R-Maine, USPS said it appreciated the efforts of her committee to
craft reform legislation, but that it regretfully now opposes the
bill.
“We believe there are critical elements missing from this bill,
as well as numerous burdensome provisions that would make it
extremely difficult for the Postal Service to function in a modern,
competitive environment,” the letter said.