Mailers Council`s New White Paper Calls for Legislative Reform to Avoid Postal Service Insolvency

ARLINGTON, Va.--(Business Wire)--
The Mailers Council, the nation`s largest coalition of mailers and mailing
associations, has published a new white paper that warns of United States Postal
Service insolvency without significant new legislative reform. The paper
suggests other non-legislative steps to avoid collapse of the nation`s postal
system.

The white paper is available on the Mailers Council`s website:
http://www.mailers.org/News_Releases/news_releases.html.

According to Mailers Council Board of Directors President James R. O`Brien, "The
mailing industry, and the nearly nine million jobs it represents, and every
American who depends on a reliable, affordable postal system, need Congress`
help now. Our research shows that recent legislation offers only temporary
relief of the agency`s financial problems. Without more significant measures,
such as those outlined in our white paper, the Postal Service will soon be
unable to meet its financial obligations."

The Postal Service was recently put back on the General Accountability Office`s
High-Risk List, a reflection that the agency`s future is in jeopardy. It ended
FY 2009 with a net loss of $3 billion and is expected to report a nearly $7
billion deficit for FY 2010. Mail volume declined by approximately 26 billion
pieces in one year. Next year, the Postal Service will be close to its statutory
borrowing limit of $15 billion, with no sign of being able to repay these funds
anytime soon.

Legislation approved on September 30 gave the Postal Service a one-year reprieve
from the large annual payments required to prefund its retiree obligations.
However, because of staggering declines in mail volume, changing communication
patterns and the ongoing recession, the USPS may be unable to pay its bills or
its employees by the end of FY 2010.

The Mailers Council`s white paper offers these recommendations for addressing
the Postal Service`s problems:

1
The Postal Service needs to be allowed to reduce its head count.
2
It must be allowed to close unneeded facilities and consolidate its
retail network.
3
The Postal Service needs greater control over compensation.
4
It should be allowed to adjust its pre-funding schedule for retiree
health benefits when economic conditions dictate.
5
An arbitrator should consider the financial health of the Postal
Service when making a decision in the collective bargaining process.
6
The Postal Service should complete its study of five-day-a-week
delivery and fully present its findings for further discussion.

The Mailers Council is a coalition of corporations, nonprofit organizations, and
major mailing associations. Collectively, the Council accounts for 70% of the
nation's mail volume. The Mailers Council believes that the USPS can be operated
more efficiently, supports efforts aimed at lowering postal costs, and has the
ultimate objective of containing postal rates without compromising service.

Note to Media: For general background information on the Postal Service or the
Mailers Council, or to arrange an interview with Jim O`Brien, contact Executive
Director Bob McLean by email (bmclean@mailers.org) or phone (703-418-0390).

The Mailers Council
Robert E. McLean, CAE
703-418-0390
bmclean@mailers.org

www.mailers.org

Copyright Business Wire 2009