[press release]
Postmaster General Donahoe to Retire February 2015
Praised highly by Postal Governors for leading organization through financial crisis

WASHINGTON — The United States Postal Service Board of Governors announced [November 14th] that Postmaster General and Chief Executive Officer Patrick R. Donahoe has decided to retire February 1, 2015, after 39 years with the Postal Service.

At a public meeting of the Board of Governors this morning, Mickey D. Barnett, Chairman of the Board, called Donahoe a visionary leader who worked tirelessly to move the organization forward during one of its most difficult periods.

“Pat was the calm in the financial storm. He ignored the naysayers and went forward with his team and built a comprehensive plan for the future of the organization, made tough decisions, and executed against those decisions,” said Barnett. “That’s a testament to the great team he built and his own personal leadership.”

Donahoe became Postmaster General during a severe financial crisis, the result of an inflexible business model that limited the organization’s ability to respond to declining First-Class Mail volumes. Donahoe created an integrated financial plan and took aggressive measures to control costs – including the rationalization of mail processing, delivery and Post Office operations. These changes have significantly lowered the cost base of the Postal Service.

Commenting on the fact that the Postal Service has roughly 220,000 fewer employees today than it did in 2004, Barnett noted that “no other organization has restructured itself so dramatically and on such a large scale, and continued functioning at such a high level.  And it did so without relying upon employee lay-offs.”

“That’s the result of Pat taking responsible steps to ensure that changes don’t come at the expense of those who have made their career at the Postal Service,” said Barnett.  “There were plenty who argued for layoffs and other dramatic steps and Pat was always the voice that argued for doing the right thing for the organization and the employees – and that’s a tremendous legacy.”

“Pat’s leadership and advocacy for the organization has been remarkable,” said Barnett. “He has been an excellent strategist for the organization and the mailing industry it serves.”

Donahoe served as a constant cheerleader for mail as a marketing channel and pushed for more integration between mail and digital communications in the mailing industry. Under his leadership, the Postal Service launched several new mailing products and enhancements including Every Door Direct Mail which has generated more than $1 billion in new revenue. Donahoe also guided the organization’s shipping and package strategies to capitalize on the rapid increase of e-commerce.  In the last few years, the Postal Service has seen double digit growth each year in its package business.

Speaking this morning, Donahoe said he believes the organization is headed in the right direction, but still has a long way to go. “The organization has a lot of momentum right now, and we’re doing a lot to innovate and improve the way we serve the public and our customers,” stated Donahoe. “The nature of delivery is changing dramatically and the Postal Service will continue to be an important part of those changes.”

Appointed Postmaster General by the Postal Service Board of Governors in October, 2010, Mr. Donahoe began his 39-year USPS career as a clerk in Pittsburgh, PA while attending college at the University of Pittsburgh.  Prior to his appointment as the organization’s top officer, he served as Deputy Postmaster General and Chief Operating Officer.

“Working for a brand that touches every citizen of this great country every day has been a tremendous honor,” stated Donahoe.  “It’s always difficult to walk away from something you love and have a lot of passion for, but knowing that the organization is moving forward with a strong plan and lot of momentum makes it easier.”

A native of Pittsburgh, Mr. Donahoe and his wife have two children and two grandchildren.”

[Donahoe will be succeeded by Megan Brennan, the first woman to hold the post. The press release is here.]

[press release]
Postal Service Statement on Cyber Intrusion Incident

The Postal Service has recently learned of a cyber security intrusion into some of our information systems. We began investigating this incident as soon as we learned of it, and we are cooperating with the investigation, which is ongoing. The investigation is being led by the Federal Bureau of Investigation and joined by other federal and postal investigatory agencies. The intrusion is limited in scope and all operations of the Postal Service are functioning normally.

Information potentially compromised in the incident may include personally identifiable information about employees, including names, dates of birth, Social Security numbers, addresses, beginning and end dates of employment, emergency contact information and other information.

Postal Service transactional revenue systems in Post Offices as well as on usps.com where customers pay for services with credit and debit cards have not been affected by this incident. There is no evidence that any customer credit card information from retail or online purchases such as Click-N-Ship, the Postal Store, PostalOne!, change of address or other services was compromised.

The intrusion also compromised call center data for customers who contacted the Postal Service Customer Care Center with an inquiry via telephone or e-mail between Jan. 1, 2014, and Aug. 16, 2014. This compromised data consists of names, addresses, telephone numbers, email addresses and other information for those customers who may have provided this information. At this time, we do not believe that potentially affected customers need to take any action as a result of this incident.

The privacy and security of data entrusted to us is of the utmost importance. We have recently implemented additional security measures designed to improve the security of our information systems, including certain actions this past weekend that caused certain systems to be off-line. We know this caused inconvenience to some of our customers and partners, and we apologize for any disruption.

We began communicating this morning with our employees about this incident, apologized to them for it, and have let them know that we will be providing them with credit monitoring services for one year at no charge to them. Employees also have the personalized assistance available to them provided by the Human Resources Shared Services Center. We are committed to helping our employees deal with this situation.

Added: A source tells ABC News the attack originated in China.

Statement by Mark Dimondstein, President, American Postal Workers Union:

The American Postal Workers Union is outraged by revelations that employee information has been compromised by a “cyber intrusion” of the U.S. Postal Service data systems.

Postal management is responsible for protecting employee privacy. We intend to make sure the USPS takes steps to prevent such a breach from happening again and that employees are protected from any negative consequences resulting from the breach.

Although we are deeply distressed by the exposure of confidential employee information, we are pleased that the cyber attack does not seem to have involved postal customers. Our members are committed to providing excellent service to the people of our country.

[press release]
Postal Service to Deliver Packages Seven Days a Week During Holidays
Double-digit package growth predicted during the busy holiday shipping season

WASHINGTON — The Postal Service kicked off the holiday shipping season today by announcing that it will be delivering packages seven days a week in major cities and high volume areas starting Nov. 17 through Christmas Day in response to expected double-digit package volume growth.¹

“The Postal Service will be out making deliveries every single day during the holiday season, including Christmas Day,” said Postmaster General Patrick Donahoe (right). “During the holidays, no carrier makes more deliveries to more places than the Postal Service, and this year, we’re raising the bar with enhanced tracking and Sunday delivery.”

The demand for package service has grown as online retailers ship more products to their customers.  The Postal Service is adding package delivery on Sundays during the holidays to prepare for the heavy shipping season.

“Every household in America relies on us to get their packages in time for the holidays, and we take great pride in taking on that responsibility,” said Donahoe. “We’re prepared to do whatever it takes to deliver for our customers.”

Double-digit Growth
Due to continued e-commerce growth and improvements to its Priority Mail product line, the Postal Service is expecting double-digit growth in its package business this holiday season, likely in the range of 450 to 470 million packages. That equates to roughly 12 percent growth over the same period last year.

“Football has its season. But the holidays? That’s our season,” said Donahoe. “That’s crunch time for us, and year after year, we step up our game. E-commerce package business continues to be a big player now more than ever, so we’ve enhanced our network to ensure America that we’ll deliver their cards, gifts and letters in time for the holidays.”

While its competitors recently announced price increases, the Postal Service lowered some of its prices for businesses and frequent shippers. The new Priority Mail pricing offers affordable shipping options along with improved tracking and reliability for business customers.

“The Postal Service is a vital business partner for small and large businesses and lowering shipping prices will save them money and improve their bottom line,” said Nagisa Manabe, chief marketing and sales officer. “With our affordable shipping options, we hope to attract new business customers and become their preferred delivery service.”

2014 Christmas Shipping Deadlines
For expected delivery of holiday mail and packages by Christmas, the Postal Service recommends keeping the following mailing and shipping deadlines in mind:

Dec. 2 – First-Class Mail International/Priority Mail International
Dec. 10 – Priority Mail Express International
Dec. 15 – Standard Post
Dec. 17 – Global Express Guaranteed²
Dec. 20 – First-Class Mail/Priority Mail (domestic)
Dec. 23 – Priority Mail Express (domestic)

Skip the lines and ship online
Consumers can avoid holiday hassles by visiting usps.com — the Postal Service’s website that will help make mailing and shipping easier. Nearly 75 million customers will skip the trip to the Post Office altogether and take advantage of convenient online shipping this holiday season. Click-N-Ship and other online services allow customers to print shipping labels, order free Priority Mail boxes, purchase postage and even request free next-day Package Pickup.

Launching holiday advertising campaign
The Postal Service is also launching its advertising campaign today with a wide range of media activities, ranging from direct mail to television and print advertisements, to social media and digital promotion.

“Our holiday marketing effort will be built around the idea that the Postal Service has been planning all year for this season and we are prepared to deliver the holidays for America,” said Manabe. “Our advertising goal is to attract new consumer and business customers and provide assurance for our customers that they can depend on our affordable and reliable service to deliver their mail and packages during this season.”

The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.”

Notes:
¹ Exclusions may apply; visit usps.com for more details.
² Mail-by date does not take into account time needed for customs clearance.  Allocate extra transit day(s) for delivery outside major cities.

[press release]
Santa’s post office getting busier and busier!
Thousands of letters already received; Santa expected to answer more than 1.5 million this season from children all over the world

NORTH POLE, Canada, Nov. 5, 2014 /CNW/ – Each year, the holiday season puts a spotlight on popular toys and new exciting trends, but one timeless holiday tradition is still going strong for children all over the world. Already, Santa’s post office is reporting letters are pouring in – with the first one received in July, reminding Santa to eat well and exercise in anticipation of a very busy holiday season.

Santa’s Chief Postal Elf Holly T. Elf is reporting that already some 10,000 letters have come in, keeping postal elves busy. An increase of about 10% in letters is expected this year, meaning that Santa’s post office could answer over 1.5 million letters this season in more than 30 languages, including Braille. Santa and his 6,000 postal elves will ensure that each and every letter will get a response in time for Christmas.

“I encourage all the girls and boys to send their letter to Santa soon,” says Holly T. Elf, who started working at the North Pole post office more than 30 years ago. “And don’t forget to include your return address. While Santa knows where your house is, the postal elf team needs your address to ensure your letter will be delivered on time.”
All letters to Santa should be mailed before December 16 to give Santa enough time to send a letter back. Postage is not required for letters to Santa – but encouraging proper addressing is a good learning experience for all. Santa’s address is:

Santa Claus
North Pole
Canada HOH OHOK

About Santa’s post office
Canada Post’s national Santa Letter-writing Program officially began 33 years ago, though local programs began even earlier. For the past 13 years, the program has averaged one million letters or more a year and in total answered more than 23.2 million letters. The program could not exist without the help of current and retired employees of Canada Post who volunteer their time to ensure each letter is answered. The company extends its sincere thanks to all volunteers. To learn more about Santa’s post office please visit canadapost.ca/santa or view Santa’s video message here.

Update October 14th: Susan McGowan is still head of Stamp Services; she is on a detail with the “sales group.” “We expect her to return,” USPS spokesman Mark Saunders told The Virtual Stamp Club.

The decision to replace Susan McGowan as manager of USPS Stamp Services was reported by Bill McAllister of Linn’s Stamp News less than a day before what is supposed to be the Postal Service’s “blockbuster issue” was released, Batman. No reason was given.

McGowan had a rocky relationship with stamp collectors. With the stamp collecting press, too. Jay Bigalke of Linn’s Stamp News (shown interviewing McGowan at the National Postal Museum last September) first met McGowan when she chewed him out at AmeriStamp Expo 2013. Bigalke had reported on upcoming issues for 2013, which Stamp Services had not yet announced.

McGowan will be replaced, at least on an interim basis, by Cindy Tackett (left), a long-time staffer in Stamp Services who has often worked directly with stamp collectors.

More details are on the Linn’s website. You can leave your comments right here. Some of Lloyd’s thoughts are in his radio feature.

To replace Benjamin Bailar and fill other vacancies, the USPS is appointing the following four people to the Citizens Stamp Advisory Committee: Carolyn Gallagher, former USPS Governor; Katherine Tobin, past member of CSAC; Peter Argentine, documentary film producer, works closely with museums; and Justin Bua, artist, author, speaker and entrepreneur, “Distorted Urban Realism,” host, producer of “Street Art Throwdown” which debuts in January on the Oxygen Network.

Their terms are three years, and run from October 2014 to January 2017 (?).

The USPS press release:

Postmaster General Appoints New Members to Citizens’ Stamp Advisory Committee

WASHINGTON — Postmaster General Patrick Donahoe appointed noteworthy individuals to his committee that evaluates 40,000 stamp proposals annually before submitting approximately 25 to 30 stamp recommendations for his review and approval. The new members are Peter Argentine, Justin Bua, Carolyn Lewis and Katherine Tobin.

The Citizens’ Stamp Advisory Committee (CSAC), created in 1957, evaluates all stamp proposals received by the Postal Service. Committee members, appointed by the Postmaster General, provide expertise on history, science and technology, art, education, sports and other subjects of public interest.

“We are truly grateful and honored to have these accomplished individuals serve on the Citizens’ Stamp Advisory Committee,” said Postmaster General Patrick Donahoe. “Their diverse backgrounds, perspectives and extraordinary talents support our goal to broaden interest in stamp collecting to more audiences and enhance our world-class stamp program that remains second to none,” said Donahoe.

“Every time a new member joins CSAC the energy level goes up a notch and the stamp program benefits,” said CSAC Chairwoman Janet Klug who also serves as immediate past president of the American Philatelic Society Board of Directors and serves as chair of the New Initiatives Committee on the Smithsonian National Postal Museum’s Council of Philatelists. Klug is an author and columnist for several stamp collecting publications. “I am delighted to welcome these outstanding individuals to the committee and look forward to the creative energy they will bring,” she said.

Peter Argentine is founder of Argentine Productions, Inc., a company specializing in media design and production for museums, national parks, visitor centers, science centers and television. His television work has taken him to remote corners of the world, and includes national productions at WGBH Boston and WQED Pittsburgh for PBS, as well as for Discovery Channel and Mister Rogers’ Neighborhood. His projects in American history, natural history, and science have involved collaborating with partners at the White House Historical Association, National Park Service, World Wildlife Fund, and the National Academy of Sciences. He began his career in the education department of the Smithsonian Museum of Natural History and has earned numerous awards for his work, including a Special Jury Award for Best Exhibit Program from CINE. He earned a bachelor’s degree in anthropology, magna cum laude, from Cornell University and a master’s degree in international relations as a Benton Fellow in Broadcast Journalism at the University of Chicago.

Justin Bua is an award-winning artist, author, speaker and entrepreneur. Born in 1968 in New York City’s Upper West Side and raised between Manhattan and East Flatbush, Brooklyn, he attended the Fiorello H. LaGuardia High School of Music and Performing Arts and complemented his education on the streets by writing graffiti and performing as a breakdancer on worldwide tours. Bua earned a B.F.A. at the Art Center College of Design in Pasadena, CA, and taught figure drawing at the University of Southern California for 10 years. Bua created the artistic genre known as “distorted urban realism”, and his works have been shown in museums and galleries around the world. Beyond art, Bua has authored two books, and he has created, produced and performed in several television series, and directed the Ovation TV documentary, “Walk This Way: the DMC Story.” In 2012, Bua received an NAACP Image Award and a Telly Award for his art direction in Kareem Abdul-Jabbar’s documentary film “On the Shoulders of Giants.” Bua is host, executive producer and co-creator of the upcoming Oxygen television series “Street Art Throwdown.”

Carolyn Lewis was a member of the Postal Service’s Board of Governors from 2004 to 2010, and also served as chairman. She is the former CEO of Texwood Furniture, Inc., and has served on numerous private and public sector boards. In 2003, Lewis served on the President’s Commission on the United States Postal Service, which submitted the report “Embracing The Future.” In 1976, Lewis earned her undergraduate degree from Duke University and in 1982, a master’s degree from the Harvard Business School. She has been a community leader in Austin, TX, for many years, chairing numerous non-profit boards.

Katherine C. Tobin joined the committee in 2013, is a commissioner of the U.S.-China Economic and Security Review Commission, and was a member of the Postal Service’s Board of Governors from 2006-2009. There, she helped set policies on all postal matters. Tobin brings 15 years of experience as a business manager, market researcher and consultant to CSAC, having worked in corporate America at Hewlett-Packard and IBM. In 2009, she was appointed Deputy Assistant Secretary for Performance Improvement at the Department of Education. Tobin earned doctoral and master’s degrees from Stanford University’s School of Education. She earned a Master of Arts in teaching from the University of Massachusetts’ School of Education, and a bachelor’s in English with honors from Skidmore College.

Former Postmaster General Benjamin Bailar, who joined CSAC in 2007, is leaving the committee. Bailar served as Postmaster General from 1975 to 1978.

“The Postal Service is grateful to Benjamin for his service and contributions to the Committee, and before that, as Postmaster General,” said Donahoe. “His invaluable assistance in the complex process of recommending stamp subjects and stamp designs has been vital to helping the Postal Service produce a superior stamp program.”

Submitting Stamp Suggestions
Due to the time required for research and approval in the stamp selection process, ideas for stamp subjects should be received at least three years before the proposed issuance. Each submission should include pertinent historical information and important dates associated with the subject. No in-person appeals are accepted. Mail suggestions to the Citizens’ Stamp Advisory Committee at the address below.

Citizens’ Stamp Advisory Committee
475 L’Enfant Plaza SW, Room 3300
Washington, DC 20260-3501

NOLA.com/Times-Picayune writer Jarvis DeBerry makes fun of stamp collectors who are unhappy with the commercialization and pop-culturization of the U.S. stamp program.

It’s a well-written piece that shows a knowledge of the subject: DeBerry notes Monday’s USPS announcement that its losses continue to mount. (That doesn’t mean I think DeBerry is correct, just that he read up on the subject before writing it.)

Make sure you take a look at the poll embedded in the article.

DeBerry’s column is an amusing read, and an insight into how outsiders view stamps, stamp collecting, and the choice of subjects for U.S. stamps.

[press release]
U.S. Postal Service Reports 2.0 Percent Revenue Increase, $2.0 Billion Loss in Quarter 3
· Shipping and Package Services Revenue Up 6.6 Percent
· January Price Increase Offsets Continued Volume Loss in First-Class Mail, Driving All Mail Revenue Up $424 Million
· Need for Comprehensive Legislation Remains Urgent

WASHINGTON — The U.S. Postal Service ended the June 30, 2014, quarter with a net loss of $2.0 billion, compared to a net loss of $740 million for the same period last year. The Postal Service has recorded a loss in 21 of the last 23 quarters, the excepted quarters being the two in which Congress rescheduled the Retiree Health Benefits prefunding payments.

Revenue continues to improve as a result of the Postal Service’s January mail price increase, successful sales and marketing initiatives, and continued success in growing the package business. Total operating revenue of $16.5 billion increased by $327 million, or 2.0 percent, compared to the same period last year.

Shipping and Package revenue was up 6.6 percent. Standard Mail revenue was up 5.1 percent, driven by a 0.9 percent increase in volume and the January 2014 price increase. First-Class Mail volume was down 1.4 percent, but the January price increase offset this decline, resulting in a 3.2 percent revenue increase.

“We’re seeing momentum in our package business and continued use of direct mail as an advertising medium,” said Postmaster General and Chief Executive Officer Patrick Donahoe. “We’ve been effective in developing and marketing our products, and we’re improving how we leverage data and technology—all providing a higher return on mail for many customers and causing them to take a fresh look at the Postal Service.”

Total operating expenses for the third quarter of 2014 were $18.4 billion, an increase of $1.5 billion from the same period last year, driven mainly by the Workers’ Compensation fair value adjustment. Compensation and benefits expenses increased by $15 million, or 0.1 percent, compared to the third quarter of 2013, as contractual pay increases were offset by work-hour reductions and more efficient use of available labor flexibility.

“Due to continued losses and low levels of liquidity, we’ve been extremely conservative with our capital, spending only what is deemed essential to maintain existing infrastructure,” said Chief Financial Officer and Executive Vice President Joseph Corbett. “To continue to provide world-class service and remain competitive, we must invest up to $10 billion to replace our aging vehicle fleet, purchase additional package sorting equipment, and make necessary upgrades to our infrastructure.”

Corbett also said that the organization will be unable to make the required $5.7 billion retiree health benefit prefunding payment to the U.S. Treasury, due by Sept. 30, 2014. Comprehensive postal legislation is necessary to eliminate this liability and provide a basis for the Postal Service to return to long-term financial health.

This quarter’s results were improved as a result of implementing the exigent price increase, which the Postal Regulatory Commission has ruled as a surcharge to be collected only until the Postal Service recovers a total amount of $3.2 billion of incremental revenue, estimated to occur in the second half of 2015. The Postal Service has petitioned the United States Court of Appeals for the District of Columbia Circuit to review the PRC’s order on the exigent price increase. Among other things, the Postal Service’s position is that the PRC improperly and artificially limited the amount of relief to which the Postal Service was entitled as a result of the Great Recession.

Following is a summary of third quarter results of Operations compared to same period last year.
· Total mail volume of 37.7 billion pieces compared to 37.8 billion pieces

o Shipping and Package volume increased 7.7 percent.
o Standard Mail volume increased 0.9 percent.
o First-Class Mail volume declined 1.4 percent. This was the 32nd consecutive quarterly decline for First-Class Mail volume.

· Operating revenue of $16.5 billion increased $327 million or 2.0 percent.

Operating expenses before non-cash workers’ compensation and Postal Service Retiree Health Benefit Fund expenses of $16.5 billion increased from $16.3 billion, a 1 percent change.

Complete financial results are available in the Form 10-Q, available at http://about.usps.com/who-we-are/financials/welcome.htm

Former Postmaster General Benjamin F. Bailar has quit the Citizens Stamp Advisory Committee, reports Linn’s Stamp News, saying it has becoming overly concerned with making money for the USPS and not with the significance of the stamps the U.S. issues. Bailar was a serious stamp collector before he became PMG, and remains an APS member, so this reduces the number of “real” stamp collectors on CSAC further. The Linn’s story is here.

According to the article by Linn’s Washington Correspondent Bill McAllister, Bailar’s letter to Postmaster General Patrick J. Donahoe is scathing at points.

“In my opinion the stamp program should celebrate the things that are great about the United States and serve as a medium to communicate those things to a world-wide audience. To prostitute that goal in the pursuit of possibly illusory profits does not make sense to me,” he wrote.

What’s important to remember is that Bailar isn’t a “philatelic battlefield conversion,” one of these postal stamp functionaries who, when asked if he is a stamp collector, says, “I am now.” Bailar was a stamp collector before he became Postmaster General (1975-78) and after. See the VSC radio feature with him from 2007. Read his comments at the dedication of the Gordon and Mary Morison Pavilion at the American Philatelic Center earlier that year. (The photo above was taken at that event.)

But Bailar also has solid business credentials. He’s a graduate of Harvard Business School, according to Wikipedia, and has worked for several major corporations.

One more quote from the letter, as quoted in the Linn’s article: “The idea that the stamp program can make a meaningful contribution at the Postal Service is not realistic.”

Stamp sales are a drop in the bucket of USPS revenues. They are a drop in the bucket of the USPS deficit. They do garner publicity for the USPS, but to what end? If you want to mail a birthday card to your mother, chances are you won’t use UPS or FedEx. The USPS has no competitors in U.S. mail delivery.

Bailar says membership on CSAC is no longer rewarding. Indications are he is not the only established stamp collector to quit the panel for that reason.

Bailar’s departure leaves Janet Klug, a well-known philatelist, former American Philatelic Society president, exhibit judge and columnist, as Chair of CSAC. And perhaps nominee for for Philatelic Sisyphus of The Decade.

Office supply chain Staples and the U.S. Postal Service are ending a pilot program to put postal counters inside Staples stores that would have been staffed by non-union Staples employees. The decision comes just a few days after the country’s biggest teachers union called for a boycott of Staples, just as the lucrative back-to-school buying season was beginning.

There had also been protests outside some stores recently.

There are articles about the cancellation of the program in The Wall Street Journal and on Reuters.