- Personal Finance
Why Another New Postage Rate?
Postage Rate Hike
Another new postage rate
hike is getting ready to take effect on Monday. What is going
on? Postage rates have doubled in less than 20 years.
What are all of the factors that are causing all of these new postage
rates? I hope that you will be able to understand some of
the reasons after you read this article.
Part of every postage rate
hike has been based on increased fuel costs. The price of
oil and gasoline are both down from one year ago, but they are above
the costs at the time of the last postage rate hike and nearly
double what they were in 1988 when postage rates
were only 22 cents for the first ounce. Each fluctuation in the
price of gas puts an even greater burden on the postal services budget.
In the same time frame as the
price of oil has gone up, so have the wages for all postal workers.
The new postage rate needs to cover that. Those wages have
been increased to meed the rate of inflation and have been increased
by an average of 3% per year. Those wage are good for the employees,
but are difficult to take without increases in postage rates.
Health Care Costs
The new postage rates
are, in part, is to cover the increasing costs of healthcare for current
and retired employees. Healthcare costs continue to be half of
every employees wage package. Healthcare for the retired population
has jumped beyond control and reason and is causing some companies to
fold. The new postage rates have to cover these costs as
Postage rate hikes are not always a way to make a profit. The postal service is actually supposed to be non-profit. The ever increasing costs of living and breaking even put a burden postage rates. Since postage is the only product that the postal service sells, postage rate hikes are impossible to avoid. The only things that can be done are to manage costs and project future income and losses to hopefully only raise the postage rates when it is absolutely necessary.