The United States Postal Service (USPS) was denied on a request for an emergency rate hike by the regulatory commission in control of such price increases.
“The commission finds that the Postal Service has shown the recent recession to be an exigent circumstance, but it failed both to quantify the impact of the recession on its finances and to show how its rate request relates to the resulting loss of mail volume,” said Postal Regulatory Commission Chair Ruth Goldway.
The USPS was seeking a rate increase on mailings averaging 5.6 percent across the board. The commission did not buy the Postal Service’s claim that the recession is partly to blame for its current financial woes, and said a postal rate hike would not solve the Postal Service’s problems.
The Postal Service’s fiscal third quarter net loss swelled to $3.5 billion and has warned its liquidity problems will reach critical levels by next year. The Postal Service wants to end Saturday mail delivery and restructure payments to its retiree benefits funds to reduce expenses — both of which will require Congressional approval. It has already cut the equivalent of 36,000 jobs and plans to close hundreds of post office locations across the country.
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