Table Of Contentt
OVERSIGHT HEARINGS ON THE U.S. POSTAL
SERVICE-1994
/ 4. P 84/10: 103-40
Iversight Hearings of the U.S. Post...
HEARINGS
BEFORETHE
COMMITTEE ON
POST OFFICE AND CIVIL SERVICE
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
APRIL 14, 19, 26; MAY 17, 24; JUNE 8, 1994
Serial No. 103-40
Printed for the use ofthe Committee on Post Office and Civil Service
JAN 2 6 1995
OVERSIGHT HEARINGS ON THE U.S. POSTAL
SERVICB^1994
HEARINGS
BEFORETHE
COMMITTEE ON
POST OFFICE AND CIVIL SERVICE
HOUSE OF REPRESENTATIVES
ONE HUNDRED THIRD CONGRESS
FIRST SESSION
APRIL 14, 19, 26; MAY 17, 24; JUNE 8, 1994
Serial No. 103-40
Printed for the use ofthe Committee on Post Office and Civil Service
U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON : 1994
ForsalebytheU.S.GovernmentPrintingOffice
SuperintendentofDocuments,CongressionalSalesOffice,Washington,DC 20402
ISBN 0-16-046086-7
COMMITTEE ON POST OFFICE AND CIVIL SERVICE
WILLIAML. CLAY,Missouri,Chairman
PATRICLVSCHROEDER,Colorado JOHNT. MYERS,Indiana
FRANKMcCLOSKEY,Indiana BENJAMINA. OILMAN,NewYork
GARYL.ACKERMAN,NewYork DONYOUNG,Alaska
THOMASC. SAWYER,Ohio DANBURTON, Indiana
PAULE. KANJORSKI, Pennsylvania CONSTANCEA. MORELLA,Maryland
ELEANORHOLMES NORTON,Districtof THOMASJ. RIDGE,Pennsylvania
Columbia THOMASE. PETRI,Wisconsin
BARBARA-ROSE COLLINS, Michigan SHERWOODL. BOEHLERT,NewYork
LESLIE L. BYRNE,Virginia (Vacancy)
MELVINL.WATT,NorthCaroUna
ALBERTRUSSELLWYNN,Maryland
GREGLAUGHLIN,Texas
SANFORDD. BISHOP,Jr.,Georgia
SHERRODBROWN,Ohio
ALCEE L. HASTINGS,Florida
GailE. Weiss,StaffDirector
RobertE. Lockhart,GeneralCounsel
DorisMoore-Glenn,DeputyStaffDirector
JosephA.Fisher,MinorityStaffDirector
(II)
CONTENTS
April 14, 1994
Page
HearingheldinWashington,DC,April 14, 1994 1
Statementof:
Runyon, Marvin, Postmaster General ofthe United States, accompanied
byJoe Caraveo, ChiefOperatingOfficerand ExecutiveVicePresident,
U.S. PostalService; andMikeRiley,ChiefFinancialOfficerandSenior
VicePresident,U.S.PostalService 9
Preparedstatements,letters,supplementalmaterials,etcetera:
Ackerman, Hon. Gary L., a Representative in Congress from the State
ofNewYork,preparedstatementof 8
B3TTie, Hon. Leslie L., a Representative in Congress from the State of
Virginia,preparedstatementof 167
Clay, Hon. William L., a Representative in Congress from the State
ofMissouri,preparedstatementof 2
Colhns, Hon. Barbara-Rose, aRepresentativeinCongressfromthe State
ofMichigan,preparedstatementof 9
McCloskey, Hon. Frank, a Representative in Congress from the State
ofIndiana 4
Morella, Hon. ConstanceA., aRepresentativeinCongressfromtheState
ofMaryland,preparedstatementof 6
Runyon,Marvin,PostmasterGeneraloftheUnitedStates:
Preparedstatementof 15
ResponsetowrittenquestionssubmittedbyHon.WilliamL.Clay ..... 78
ResponsetowrittenquestionssubmittedbyHon.ThomasC.Sawyer 97
ResponsetowrittenquestionssubmittedbyHon.FrankMcCloskey... 106
ResponsetowrittenquestionssubmittedbyHon.LeslieL.Byrne 110
ResponsetovmttenquestionssubmittedbyHon.JohnT.Myers 119
Response to written questions submitted by Hon. Benjamin A. Gil-
man 125
Response to written questions submitted by Hon. Constance A.
Morella 139
Sawyer, Hon. Thomas C, a Representative in Congress from the State
ofOhio 3
April 19, 1994
HearingheldinWashington,DC,April 19, 1994 173
Statementof:
DelPohto, Gene,executivedirector.AdvertisingMail MarketingAssocia-
tion; accompanied by Stephen Bair, chairman, Postal Committee of
theAssociationofAmericanPublishers,andDavidTodd, counsel.Mail
OrderAssociationofAmerica 216
Silbergeld, Mark, president. Alliance ofNonprofit Mailers; accompanied
by Brian Himimell, assistant director, Alliance of Nonprofit Mailers;
Lee Cassidy, executive director. Nonprofit Mailers Federation; Barcy
Fox,vicepresidentforinstitutionaladvancement,St. LouisUniversity;
Carolyn Enigh, economic counsel. Nonprofit Mailers Federation; and
TondaRush,presidentandCEO,NationalNewspaperAssociation 175
Williamson, Robert, executive director. National Association of Presort
Mailers; accompanied by Ralph Seiffe, vice president and treasurer.
NationalAssociationofPresortMailers,andArthurSackler,managing
director.MailersCouncil 202
(III)
IV
Page
Preparedstatements,letters,supplementalmaterials,etcetera:
AmericanBusinessPress,preparedstatementof 277
Bair, Stephen, chairman, Postal Committee ofthe Association ofAmer-
icanPubUshers,preparedstatementof 267
Cassidy, Lee, executive director. Nonprofit Mailers Federation, prepared
statementof 189
Collins, Hon. Barbara-Rose, aRepresentativeinCongressfromtheState
ofMichigan,preparedstatementof 173
DelPolito,Gene,executivedirector.AdvertisingMailMarketingAssocia-
tion,preparedstatementof 220
Fox, Barcy, vice president for institutional advancement, St. Louis Uni-
versity,preparedstatementof 190
NewspaperAssociationofAmerica,preparedstatementof 286
Rush, Tonda, president and CEO, National NewspaperAssociation, pre-
paredstatementof 199
Sackler,Arthur,managingdirector, Mailers Council, prepared statement
of 209
Sawyer, Hon. Thomas C, a Representative in Congress from the State
ofOhio,preparedstatementof 216
Silbergeld, Mark, president, AUiance of Nonprofit Mailers, prepared
statementof 177
Todd, David,counsel.MailOrderAssociationofAmerica, preparedstate-
mentof 271
Williamson, Robert, executive director. National Association of Presort
Mailers,preparedstatementof 204
April 26, 1994
HearingheldinWashington,DC,April26, 1994 291
Statementof:
Holmes,Geoffrey,seniorvicepresident/technology.TimeWarnerInc 292
McCormick, ChristopherJ.,vice presidentofadvertisinganddirectmar-
keting, L.L. Bean Inc., on behalfofthe Direct MarketingAssociation;
andTimothyMay,generalcounsel,ParcelShippersAssociation 327
Weil, John D., president and CEO, American Envelope Company, on
behalfofthe EnvelopeManufactvu-ersAssociation ofAmerica; and Mi-
chaelF.Cavanagh,president,CavanaghAssociates 306
Preparedstatements,letters,supplementalmaterials,etcetera:
Cavanagh, Michael F., president, Cavanagh Associates, prepared state-
mentof 318
Collins, Hon. Barbara-Rose, aRepresentativeinCongressfromtheState
ofMichigan 291
Daly,JohnJay,president,DalyCommunications 345
Hefner,Marg,privatecitizen 346
Holmes, Geoffi-ey, senior vice presidentytechnology. Time Warner Inc.,
preparedstatementof 296
May, Timothy, general counsel. Parcel Shippers Association, prepared
statementof 337
McCormick, ChristopherJ.,vice presidentofadvertisingand directmar-
keting, L.L. Bean Inc., on behalfofthe Direct MarketingAssociation,
preparedstatementof 330
Watt, Hon. Melvin L., a Representative in Congress from the State of
NorthCarolina,preparedstatementof
Weil, John D., president and CEO, American Envelope Company, on
behalfoftheEnvelopeManufacturersAssociationofAmerica,prepared
statementof 310
May 17, 1994
HearingheldinWashington,DC,May 17, 1994 347
Statementof:
Brown,WilliamR.,Jr.,president.NationalRuralLetterCarriersAssocia-
tion;WilliamQuinn,nationalpresident.NationalPostalMailHandlers
Union; Michelle Readinger, Postal Police, Fraternal Order of Police,
NationalLaborCouncilandPostalPoliceUnion;andJamesM. McGee,
president. National AUiance ofPostal and Federal Employees, accom-
paniedbyCharlesEnsign,nationalvice-president 373
V
Page
Statementof—Continued
Games, David, president. National Association of Postmasters of the
United States, accompanied by Teena Cregan, director, government
relations; Armando Olvera, president, the National League of Post-
masters, accompanied by Ed Bowley, legislative consultant; and Vince
Palladino,president,NationalAssociationofPostalSupervisors,accom-
paniedbyBobMcLean,legislativeassistant 398
Sombrotto,VincentR., president.NationalAssociationofLetterCarriers,
AFL CIO, accompanied by John Gould, legislative assistant and WU-
UamBurrus,executivevice-president,AmericanPostalWorkersUnion,
AFLCIO,accompaniedbyLloydBronstein,legislativedirector 350
Preparedstatements,letters,supplementalmaterials,etcetera:
Brown,WilliamR.,Jr.,presidentNationalRuralLetterCarriersAssocia-
tion,preparedstatementof 375
Bums,JamesA., president. PostalManagersofAmerica, prepared state-
mentof 419
Burrus, WilUam, executive vice-president, American Postal Workers
Union,AFLCIO,preparedstatementof 356
Games, David, president. National Association of Postmasters of the
UnitedStates,preparedstatementof 401
Hefner,Marg,privatecitizen,preparedstatementof 428
McGee, James M., president. National Alliance of Postal and Federal
Employees,preparedstatementof 392
Olvera, Armando, president, the National league of Postmasters, pre-
paredstatementof 408
Palladino, Vince, president. National Association ofPostal Supervisors,
preparedstatementof 412
Quinn, William, national president. National Postal Mail Handlers
Union,preparedstatementof 379
Readinger, Michelle, Postal Police, Fraternal Order of Police National
LaborCouncilandPostalPoliceUnion,preparedstatementof 382
Sawyer, Hon. Thomas C, a Representative in Congress from the State
ofOhio,preparedstatementof 348
Sombrotto,VincentR.,president,NationalAssociationofLetterCarriers,
AFLCIO,preparedstatementof 352
Young,Hon. Don,aRepresentativeinCongressfromtheStateofAlaska,
preparedstatementof 350
May 24, 1994
HearingheldinWashington,DC,May24, 1994 429
Statementof:
Gleiman, Edward J., Chairman, Postal Rate Commission; accompanied
byW.H."Trey"LeBlancIII,ViceChairman;GeorgeW.Haley,Commis-
sioner; H. Edward Quick, Jr., Commissioner; and Wayne A. Schley,
Commissioner 447
Motley, Michael E., associate director, Government Business Operations
PreparIesdsusetsa,tGemeennetrsa,llAecttceorusn,tsiunpgplOfefmiecne,taalccmoatmeprainailesd,ebtycJeatemreas: T.Campbell . 431
Clay, Hon. William L., a Representative in Congress from the State
ofMissouri:
Preparedstatementof 430
ResponsetowrittenquestionssubmittedtothePostalRateCommis-
sion 466
CoUins, Hon. Barbara-Rose, aRepresentativeinCongressfromtheState
ofMichigan,preparedstatementof 483
Gleiman, EdwardJ.,Chairman,PostalRateCommission,preparedstate-
mentof 451
LeBlanc, W.H. "Trey", III, Vice Chairman, Postal Rate Commission, pre-
paredstatementof 459
Morella, Hon. ConstanceA.,aRepresentativeinCongressfromtheState
of Maryland, response to written questions submitted to the Postal
RateCommission 472
Motley, Michael E.,AssociateDirector, GovernmentBusiness Operations
Issues,GeneralAccountingOffice,preparedstatementof 434
VI
Prepared statements, letters, supplemental materials, et cetera—Continued Page
Myers, Hon. John T., a Representative in Congress from the State of
Pennsylvania, response to written questions submitted to the Postal
RateCommission 482
Sawyer, Hon. Thomas C, a Representative in Congress from the State
ofOhio,preparedstatementof 430
June 8, 1994
HearingheldinWashington,DC,June8, 1994 485
Statementof:
Winters, Sam, ChairmanoftheBoardofGovernors, U.S. Postal Service,
accompanied by Governor Susan Alvarado; Governor Legree Daniels;
GovernorEinarDyhrkopp;GovernorNormaPace;andGovernorRobert
Setrakian 488
Preparedstatements,letters,supplementalmaterials,etcetera:
Clay, Hon. William L., a Representative in Congress from the State
of Missouri, response to written questions submitted to the Postal
RateCommission 502
Myers, Hon. John T., a Representative in Congress from the State of
Pennsylvania,responsetowrittenquestionssubmittedtoSamWinters 508
Winters, Sam, Chairmanofthe Board ofGovernors, U.S. Postal Service,
preparedstatementof 494
OVERSIGHT HEARING ON THE U.S. POSTAL
SERVICE
THURSDAY, APRIL 14, 1994
House ofRepresentatives,
Committee on Post Officeand Civil Service,
Washington, DC.
The committee met, pursuant to call, at 9 a.m. in room 311, Can-
non House Office Building, Hon. William L. Clay (chairman ofthe
committee) presiding.
Members present: Representatives Clay, McCloskey, Ackerman,
Sawyer, Norton, Byrne, Wynn, Bishop, Hastings, Myers, Oilman,
Morella, Ridge, Petri, and Boehlert.
Mr. Clay. Good morning. Today the Committee on Post Office
and Civil Service begins a series ofsix hearings on its oversight of
the Postal Service. The major focus of these hearings will be the
future ofthe U.S. Postal Service.
The committee is concerned about the Service's future. USPS is
a hard-copy delivery service which serves every business and
household in America. We hope to hear today from the Postmaster
General about his plans for remaining competitive and financially
viable in the next century as electronic data increasingly replaces
hard copy information. We hope to learn what new services the
mailing public will demand and how these demands will be ad-
dressed. At future hearings, we will hear from the mailers, the
postal unions, management groups, the Postal Rate Commission,
the General Accounting Office, the Governors ofthe Postal Service,
and groups that have conducted studies on the future ofthe mail.
The Postal Service has requested a 10.3-percent postage rate in-
crease to carry it for the next 2 years. But most reports indicate
that present financial goals are not being met by the Service. For
fiscal year 1994, the organization is expected to lose $1,344 billion.
Through April 1, 1994, however, losses are $544 million greater
than anticipated and, overall, 1994 loses are approaching $2 bil-
lion. Mail volume is up, but work hours are up more. Overtime
hours are higher than theywere lastyear. There are nowmore em-
ployees than when downsizing began 2 years ago. Postal productiv-
ity and service performances in the first quarter ofthe fiscal year,
even before the terrible winter weather, are down. So, the commit-
tee wants to learn how the Postal Service will correct these condi-
tions.
[The prepared statementofHon. William L. Clayfollows:]
(1)
PreparedStatementofHon.WilliamL.Clay,ARepresentativeinCongress
FromtheStateofMissouri
Goodmorning. TodaytheCommitteeonPostofficeandCivil Servicebeginsa se-
ries ofsixhearings on itsoversight ofthe Postal Service. The majorfocus ofthese
hearingswillbethefutureoftheUnitedStatesPostalService.
ThecommitteeisconcernedabouttheService'sfuture.USPSisahard-copydeliv-
eryservicewhichserveseverybusinessandhouseholdinAmerica.Wehopetohear
today from the PostmasterGeneral his plans forremaining competitive and finan-
cially viable in the next century as electronic data increasingly replaces hard-copy
information. We hope to learn what new services mailers will demand and how
these demands will be addressed. At another time we will hear from the mailers,
the postal unions and management groups, the Postal Rate Commission, the Gen-
eral Accounting Office, the Governors ofthe Postal Service, and groups that have
conductedstudiesonthefutureofthemail.
The Postal Servicehas requested a 10.3-percentpostage rate increasetocarryit
for the next 2 years. Most reports indicate that financial goals are not being met
by the Postal Service. For fiscal year 1994, the organization is expected to lose
$1,344billion.ThroughApril 1, 1994,however,lossesare$544milliongreaterthan
anticipated, and overall 1994 losses are approaching $2 billion. Msiil volume is up,
but workhours are up more. Overtime hours are higher than they were last year.
There are more employees now than when downsizing began 2 years ago. Postal
productivity and service performance in the first quarter ofthe fiscal year, before
theterriblewinterweather,aredown.ThecommitteewantstolearnhowthePostal
Servicewillcorrecttheseconditions.
Mr. Clay. Are there any other opening statements? Mr. Sawyer?
Mr. Sawyer. Thankyou, Mr. Chairman.
It's a pleasure to participate in this hearing with Postmaster
General Runyon. I want to thankyou forhavingthese hearings.
The work ofthe Postal Service is really remarkable. It is one of
the largest and most complex enterprises ever devised in human-
kind. The notion that it connects virtually every household in
America with virtually every other household in America and
points abroad on a dailybasis is a remarkable undertaking that we
too often, I think, takeforgranted.
Having said all that, these hearings represent an opportunity to
look at ways to make that service better, and as a result we some-
times concentrate on those things that provoke concern. So, while
we do that, I think it's important to recognize the extraordinary
characterofthe enterprisethat the Postal Service represents.
Having said that, I do remain concerned about the lingering ef-
fects ofrestructuring on the Postal Service. The subcommittee that
I chair, which hasjurisdiction over some elements ofpostal person-
nel, continues to receive reports from across the country expressing
concern about inadequate staffinglevels, untrained personnel being
moved into high levels ofresponsibility, and the continuingreliance
on overtime. These are the kinds of issues that can diminish the
kind ofimprovement in morale that I know that you've been seek-
ing.
Equally important, I think perhaps the most difficult undertak-
ing that we face in trying to deal with an enterprise as large as
the one that you're charged with the responsibility for running is
to move the culture of an enormous number of people, a culture
that has been in place, evolving slowly, over 200 years. So, while
highest ranking officials may be engaged in the kind of work to
achieve the sort ofcooperative management style that you have ex-
emplified, why that culture has not changed as rapidly in many
local communities is ofgreat concern. It doesn't seem tobe filtering
down to all ofthe individuals who are responsible for ensuring that
