Association for Postal Commerce

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"Apres Moi Le Deluge"

The following is a perspective by postal commentator Gene Del Polito, which was prepared for publication in Target Marketing magazine. The views expressed are the author's and do not necessarily reflect the views of the association.

Women talk about having a biological clock. We, within the mailing community, have what is known as a "legislative clock." That's the clock that's ticking off the minutes and seconds that are left in this congressional legislative session. This ticking clock should be of concern to anyone who uses or supports the use of mail as a medium for business communication and commerce. The "why" is simple.

Some six years ago, Rep. John M. McHugh (R-NY) took seriously the concerns we at the Association for Postal Commerce (PostCom), then called the Advertising Mail Marketing Association, expressed regarding the viability of the U.S. Postal Service (USPS) in a hotly competitive, electronic age. After two years of careful study, McHugh, as chairman of the Subcommittee on the Postal Service for the House Committee on Government Reform, proposed a far-reaching bill to "modernize" the legislative and regulatory underpinnings of the Postal Service. His proposal was subjected to considerable scrutiny by postal users and competitors, and, in subsequent congresses, he reshaped his proposal to reflect some of the disparate views that had been expressed by supporters and critics alike.

Despite Mr. McHugh's efforts to address appropriately the legitimate concerns of those most affected by his bill, competitors of the Postal Service and their lackeys have remained strident opponents of anything that promises to make the Postal Service a more efficient competitor within the hard-copy message and package delivery business. Meanwhile, "supporters" of his bill (and I say the word "supporters" with tongue in cheek) have been most lackluster in their efforts to convince members of Congress and, in the case of some trade associations, members of their own to support congressional passage of Mr. McHugh's bill.

So, here we are, some six years and three Congresses later, and the matter of postal legislative reform is still languishing at the House committee level. In the meantime, absolutely nothing has been done on the matter of postal reform within the U.S. Senate.

Under rules adopted by the Republican House leadership in 1995, the maximum number of years any one person can serve as chairman of a particular committee or subcommittee is six. This year is Mr. McHugh's last year as the chairman of the House postal subcommittee. If re-elected in the fall, McHugh will be on to other business, and the subcommittee's leadership (if there is a postal subcommittee at all) will pass to other less-interested and less-informed hands. In fact, it really doesn't matter whether the next Congress falls under Republican or Democratic leadership. The simple fact is that John McHugh is the only member of Congress who has taken on postal reform as a key legislative issue. Indeed, he has been the most inquisitive and knowledgeable congressional postal leader in recent memory.

McHugh's loss to the legislative effort to secure some significant legislative postal change will hurt everyone whose business is somehow connected to the viability of a universal mail delivery system. For, without postal reform, the Postal Service will be on the fast-track to fiscal perdition. In fact, it already is.

For the first time in its institutional life, the USPS is facing the loss of mail volume and revenue. The prospects of even greater loss are increasing as businesses move more of their commercial transactions to electronic pathways. While some within our industry might choose to take comfort in their own development of electronic alternatives, the plain and simple fact is that the broadening of bandwidth and the development of simple-to-use internet appliances notwithstanding, America will continue to need for some time to come a method of delivering printed messages and packages to any and every address in the nation.

When it comes to universal service, the Postal Service is still the only game in town. The rents charged by the likes of United Parcel Service (UPS) for simple rural, residential delivery are enough to break any direct marketer's bank. Despite postal competitors' claims that the USPS is guilty of "unfair" competition, no one other than the Postal Service is willing to take on the nation's universal mail delivery needs. In short, every direct marketer in the nation desperately needs a Postal Service that can operate cost-efficiently within today's competitive business environment.

Over the past six years, I've participated in a number of meetings with "interested parties" on the topic of postal legislative reform. The one thing that has impressed me has been the persistent bone-headedness some have demonstrated when it comes to defining what they need from postal legislative reform. They'll spend a great deal of time talking about what they want (which characteristically is unobtainable) and very little about what they need. They'll weep, gnash their teeth, and rend their garments about the "imperfections" they perceive in this proposal or that. Indeed, they seem more eager to embrace the disastrous (i.e., what we have today) rather than the acceptable, simply because they perceive a lack of the "perfect."

To make matters worse, many of the people within the direct mail industry suffer from, for lack of a better term, postal attention deficit disorder. The crisis or calm that's immediately before them is all they can remember. In good postal times, the prospects of postal legislative reform is nothing but an afterthought. In the midst of a troubling rate case, the focus shifts to the microeconomic minutia that characterizes modern American postal ratemaking without even a thought that the trouble that now seems so foreboding at the forefront is the offspring of previous years' neglect.

It's time our industry took seriously this wake-up call. The time for picking legislative nits has long passed. It's time we stood ready to support a proposal that at least promises mailers the possibility of a better postal day. To stick with what we have only invites the chaos a postal disintegration will visit on all our businesses. Remember the anguished outcries that accompanied the United Parcel Service 10-day strike? Just imagine, then, the anguish that will accompany a postal fiscal collapse.

As far as postal employees are concerned, how long will it take to learn that the newest postal oxymoron is "union leadership?" In fact, when it comes to postal legislative reform, postal employee organization leadership is most noteworthy by its absence rather than its involvement. Could it be that union and employee group leaders are really oblivious to portents of postal fiscal demise? Do they really not understand that if they keep squeezing the goose they've relied on to produce their golden eggs they just might squeeze the very life out of it? Are they not aware that bargaining and arbitrating for the sake of the postal unborn rather than for the long-term betterment of their present members is not in their dues-paying members' best interests?

Where also is the leadership that the nation should expect to see from others who hold high posts within our nation's postal system? Where are the Governors when it comes to legislative reform? Do they appreciate fully the challenges that face the Postal Service in the years ahead? Do they understand that a presidential appointment to the Postal Service's governing board requires more than merely saying "yea" or "nay" to a Postal Rate Commission recommended decision? Indeed, the silence emanating from the postal board room on the matter of postal legislative reform has been most disconcerting.

Unless we all take seriously this matter of positioning the Postal Service to survive within the years ahead, we're all going to be in one whale of a fix when an infrastructure that should work begins to sputter and stall. As for John McHugh, well, he's done his part. I can even hear the echo of his final words as he ambles out of the postal subcommittee office for the last time as its chairman: "Apres moi le deluge."

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