Mixed reaction to Postal Service announcement

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Chicago—Industry reactions have been mixed following the U.S. Postal Service's announcement that it will eliminate most Saturday mail delivery in an effort to save $2 billion annually. The American Catalog Mailers Association supports action that keeps mailing costs low. “We support this move and other aggressive cost-cutting efforts, provided they make a material difference and help keep rates in check,” the association said in a statement. “We hope Congress will act soon to give the USPS greater flexibility in managing its costs.” American Business Media, an association of business information and media companies, said it supports efforts to reduce costs but also believes congressional action is needed. “To put it simply, we believe cutting costs that reduce service to your customers should only be taken as part of the implementation of an overall plan for reducing costs,” said Jack Widener, ABM's postal counsel, in a statement. “Congress must take action on the other needed changes.” Mary Berner, CEO of MPA, expressed surprise at the decision in a statement. “Despite the difficulties the schedule change would entail, MPA told Congress we were willing to make changes if the shift to five-day delivery and resultant cost savings for the Postal Service were part of a comprehensive package of long-term reforms that would ensure a viable postal system for the foreseeable future,” Berner said. The Postal Service, which reported a net loss of $15.9 billion in fiscal 2012, will still deliver packages, mail-order medicines, priority and express mail on Saturdays.
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