The United States Postal Service (USPS) is a critical cog in the nation’s wheel of commerce, and the graphic communications industry is rallying to its side during PRINT 09 at Chicago’s McCormick Place, September 11-16, as USPS faces the dire prospect of running out of operating funds before its current fiscal year ends on September 30. The result would be that USPS would fail to make its $5.4 billion annual retiree health pre-funding payment required by law under the Postal Accountability and Enhancement Act (PAEA) of 2006.

Although the Postal Service is expected to save some $6 billion this year by implementing cost-cutting measures, the extraordinarily costly mandatory retiree health benefits payment schedule, combined with a precipitous 12.6 percent drop in mail volume this year alone has resulted in a $2.4 billion third quarter shortfall for USPS, and a projected $7.1 billion loss for the year. The dramatic decline is attributed to the current severe recession, as well as rapidly changing patterns of communication, advertising and bill presentment and payment in the Internet era.

Led by NPES The Association for Suppliers of Printing, Publishing and Converting Technologies, the thousands of graphic communications professionals who will assemble in Chicago for PRNT 09 will be urged to sign a petition addressed to President Barack Obama, Speaker of the House Nancy Pelosi (D-8-CA), Republican House Leader John Boehner (R-8-OH), Senate Majority Leader Harry Reid (D-NV), Senate Republican Leader Mitch McConnell (R-KY) and all other members of the 111th Congress urging passage of legislation before the end of September that would allow the USPS tomeet its immediate need for financial relief. The industry petition can be found online at: www.npes.org/government/postal-relief-petition.html.

Additionally, the petition will call upon all stakeholders in the mailing and fulfillment industry, and the millions of businesses that depend on commercial mail advertising, to come together to craft a new business paradigm for the USPS of the 21st century.

With the prospect of the USPS running out of money before the end of FY2009 in sight, in January U.S. Representative John McHugh (R-23-NY) introduced H.R. 22 designed to temporarily assist the Postal Service in pre-funding its retiree health benefits at the unusually high amount of $5.4 billion a year, far more than required by any other government agency or private employer.

A companion measure, S. 1507, was introduced in the Senate in July by Senator Tom Carper (D-DE), which was favorably reported by the Committee on Homeland Security and Governmental Affairs, but with the addition of an amendment by Senator Tom Coburn (R-OK) that has drawn the ire and opposition of postal employee unions. The Coburn amendment would mandate consideration of the USPS finances in any decision rendered by an arbitrator in resolving Postal Service collective bargaining disputes.

While this amendment was approved by a strong bipartisan vote in the committee mark-up, subsequent strong objections by postal employee unions have caused some supporters to back away from retaining the requirement in the legislation. Regrettably, this has lead to a legislative situation that could jeopardize the underlying relief effort that heretofore had been supported by the broad cross-section of mailing industry stakeholders. “The need for this legislation is urgent and it is imperative that the President and Congress lead and act before the USPS runs aground” said NPES President Ralph Nappi, adding that “it is equally important that all stakeholders remain at the table to negotiate a new business model for the USPS going forward.”

For more information contact NPES Government Affairs Director Mark J. Nuzzaco at phone: 703/264-7235 or e-mail: mnuzzaco@npes.org.