Proposed Three Cent Increase
The United States Postal Service (USPS) announced proposed price changes September 26, including a 3¢ increase in the price of First-Class Mail single-piece letter from 46¢ to 49¢. The proposed changes are intended to generate $2 billion in incremental annual revenue for the Postal Service. The proposed changes would go into effect in January 2014.
Highlights of the new single-piece First-Class Mail pricing, effective Jan. 26, 2014 include:
- Letters (1 oz.) — 3-cent increase to 49 cents
- Letters additional ounces — 1-cent increase to 21 cents
- Letters to all international destinations (1 oz.) — $1.15
- Postcards — 1-cent increase to 34 cents
Read the USPS’ press release here.
Postal Service Health Care Plan
Postmater General, Patrick R Donahoe, gave an oral testimony before the Senate Committee on Homeland Security and Govermental Affairs September 26 to highlight the additional changes that need to be made to the Postal Reform Bill of 2013, S. 1486 to ensure that the Postal Service is on the path to financial stability.
Donahoe closed the testimony by mentioning the proposed three cent increase:
“Yesterday the Postal Service announced a price increase above the rate of inflation. We did not want to take this step, but we had little choice due to our current financial condition. Resolving our healthcare issues will mitigate the pressure to raise prices and to take other unpalatable steps in the future – but – we must fully address our health care costs to do so.”
Read Donahoe’s oral testimony here.