Tackle Tough Issues, Says Publishers Group

American Business Media (ABM), a New York City-based trade association that represents business-to-business media companies, also issued recommendations to the postal commission, urging that it tackle controversial issues, such as labor costs, plant closings, and a reasonable definition of "universal service."

The group believes that the U.S. Postal Service has been powerless to control wages, adjust the size of its work force, and close duplicative facilities. For example, it notes that, even after investing tens of billions of dollars on automation, the post office still spends around 75% of its total costs on labor. ABM also believes that the USPS should adopt area wage differentials and replace binding arbitration with mediation, and, if necessary, determination by a board appointed by the President.

In addition, the media group opposes the view that the current USPS rate-setting system should be scrapped and the post office given more pricing flexibility. "The current rate-setting system, although flawed, is not the cause of the Postal Service's ills, and discarding it is not the cure," says Gordon Hughes, president and chief executive of ABM.