In an announcement that shocked many today, the Postal Regulatory Commission soundly rejected the Postal Service’s request for a postage rate increase of 5.4 percent on January 1, 2011.
This means that postage rates will remain the same until they can be legally changed under the price cap formula next May. This is also a stunning loss for the Postal Service has it has pleaded that it desperately needs the money to sustain its operations and it comes in the middle of union negotiations with two of the largest postal unions.
The Envelope Manufacturers Association strongly fought this increase through our Affordable Mail Alliance and we filed many hours of testimony showing how this rate increase would damage a recovery in our industry. This decision to hold prices stable will have a positive impact on mailings both in the Fall and next year and upholds an important principal in the Postal Accountability and Enforcement Act that price increases could not be greater than inflation. EMA fought hard for that position as we did to uphold the law.