MPA May Submit Alternative Rate Proposal To Postal Service
The Magazine Publishers of American confirmed this week that it is considering submitting an alternative rate proposal with the Postal Service, which filed a rate case with the Postal Rate Commission in May proposing a system-wide postal increase of 8.5 percent, with magazines looking at an average 11.4 percent jump in rates. The proposed rate hike comes after a 5.4 percent postal increase in January. If it passes, rates will have gone up 17.4 percent in less than a year and a half.
In an e-mail to Folio: Wednesday, MPA spokeswoman Cristina Dinozo said this, "At this time, MPA is considering submitting a proposal that encourages co-mailing and co-palletization, more than is proposed by the Postal Service. If we do submit the proposal it will be early September."
It is believed by some in the industry that Time Warner, owner of publisher Time Inc., is also considering submitting an alternative rate proposal with the Postal Commission that would shift some of the burden off "highly work-shared publications." Time spokespersons were unable to confirm this at press time, however.
The Postal case is prompting a renewed call for postal reform, which would not affect this rate increase but could cap future rate hikes. Both MPA and American Business Media have called on Congress to enact postal reform that would eliminate the need for future rate hikes. (See May 3, Special Alert)