Pitney Bowes Applauds USPS Efforts to Minimize Rate Increase
Monday, April 11, 2005
STAMFORD, Conn., April 8 -- Pitney Bowes Inc. applauded the U.S. Postal Service's efforts to minimize the impact of rising costs by filing a request for only a modest increase in postal rates. The proposed 5.4% across-the-board increase, if approved by the independent Postal Rate Commission, could take effect early next year. It would be the first increase in the cost of postage since 2002. "Rate stability is essential to the growth and vitality of the mailing industry," said Michael J. Critelli, Chairman & CEO of Pitney Bowes. "Ours is a $900 billion industry that collectively employs 9 million Americans and accounts for 8% of U.S. GDP. To the extent that rates must rise, a measured increase like the one proposed by the U.S. Postal Service is preferable." "The Postal Service is running more efficiently than ever, so the only reason rates are rising now is because the Postal Service must fund an escrow account while Congress debates the fate of pension obligations," Critelli said. "Reform bills currently pending in both houses of Congress would eliminate this obligation to set aside billions in excess pension funds and allow the Postal Service to hold the line on rates for at least one additional year."