US AG says proposal to slow down USPS should be rejected

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Prosecutors in 20 states have asked the US Postal Regulatory Commission to reject plans to slow some first-class deliveries, saying allowing that to happen could harm local governments’ ability to perform essential functions. (Carlos Barria, Reuters)

WASHINGTON (Reuters) – Prosecutors in 20 states have asked the U.S. Postal Regulatory Commission to reject plans to slow some first-class deliveries, saying allowing that to happen could harm local governments’ ability to perform essential functions.

Postmaster General Louis Dejoy proposed in March that current service standards be revised from one to three days for first-class mail to one to five days as part of a plan to cut $160 billion in red ink expected over the next decade.

The USPS said 61% of the current first-class mail volume will remain at its current standard.

State attorneys general, led by New York, joined by the District of Columbia, New York City and San Francisco, called on the commission to urge the USPS to “abandon this misguided effort and instead focus its attention on improving its performance in delivering first-class mail and other market-dominant products.”

In official comments submitted to the commission, states said the proposal would harm states and cities’ ability to “perform essential government functions…the USPS sacrifices speed for reliability, slowing down a large portion of mail.”

The USPS has also proposed raising mail rates for most mail by 7%. Earlier this month, a coalition of retailers, newspapers, printers, greeting card companies and others opposed the plan.

The USPS said price increases are needed because over the past decade, volume of mail has fallen by 46 billion pieces, or 28%, while first-class mail of one piece has fallen by 47%.

The plan will increase first-class postage by 3 cents to 58 cents. DeJoy also suggested cutting some retail hours and closing some locations.

United States Post Office Director General Louis Dejoy at a hearing on “Legislative Proposals to Put the United States Postal Service on a Sustainable Financial Basis” on Capitol Hill in Washington, D.C., United States, February 24, 2021. (Photo: Graeme Jennings/Pool via REUTERS)

In May, a bipartisan group of 20 US senators introduced legislation to provide the USPS with $46 billion in financial relief over 10 years.

The legislation would eliminate the requirement for USPS retiree health benefits for 75 years and require postal employees to enroll in the Medicare state retiree health plan.

The USPS has struggled with poor delivery performance over the past year, as it has faced a surge in packages and staffing issues due to the pandemic.

(Reporting by David Shepardson; Editing by Jonathan Otis)

© Copyright Thomson Reuters 2021

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