USPS Rated Among Best in Diversity - July 9, 2010
[Press Release.]The Postal Service has been named one of the 40 Best Companies for Diversity in the July issue of Black Enterprise magazine.
The results were based on a survey Black Enterprise sent to the top 1,000 publicly traded U.S. companies and the 50 leading global companies with U.S. operations. The survey focused on the multicultural workforce in these companies.
“The Postal Service recognizes the value and diversity of all of its employees and is proud to be recognized for it,” said Anthony Vegliante, chief human resources officer and executive vice president. “As one of the nation’s largest employers with nearly 590,000 career employees, we embrace diversity as a vital component to enriching our workplace while better serving our customers — now and in the future.”
“We view diversity as a winning business strategy and use it as a tool to deliver results,” said Susan LaChance, vice president, Employee Development and Diversity. “It makes good business sense.”
Forty percent of postal employees are minorities as compared to 32.8 percent in other federal agencies. Fifteen percent of executives are African-Americans. The Postal Service employs approximately 124,000 African-Americans, 52,000 Hispanics, 50,000 Asians, 1,300 native Hawaiian or other Pacific Islanders and nearly 4,000 American Indian/Alaska Natives.
Itella Acquires Smartpost’s Estonian Network - July 9, 2010
[Post and Parcel.]Finnish operator Itella has bought the Estonian arm of SmartPost, the company that created a parcel network in the eastern European country.
SmartPOST has said the deal will allow them to expand in foreign markets, concentrating on the development of parcel terminal software and hardware whole solutions.
The parcel terminal network created in Estonia over the past two years will be owned by Itella, who will also become the holder of the SmartPOST brand in Estonia and the new employer of six company employees.
The company providing the service will be called OÜ Itella SmartPOST.
The transaction will in no way affect SmartPOST OÜ’s structure of stakeholders, based solely on Estonian capital.
Member of the supervisory board at SmartPOST, Peep Kuld, said: “Giving up the role of logistics service provider and concentrating on export is a planned step. The main goal for creating a parcel terminal network in Estonia was to support our plans of export and this has been achieved by today. The network has successfully been launched and that is also our main argument when proving that this is a viable business idea. After selling the Estonian network, we can showcase it to potential technology buyers.”
Kuld added that the management will also continue export activities. Earlier this year, SmartPOST agreed to provide Russia’s largest privately funded postal company with at least 100 parcel terminals. Negotiations are underway with several other European countries.
“Itella has a strong presence in the Estonian market and the consumer parcel business completes the offering. The SmartPOST acquisition will supplement Itella’s service range in Estonia, where Itella already has a strong position through Itella Logistics OÜ and Itella Information AS. Itella companies in Estonia will have about 170 employees after this transaction,” added Kuld.
The size of the deal will not be revealed.
U.S. Postal Service and Commerce Department to Sign Partnership Agreement - July 8, 2010
[Press Release.]The launch of a business partnership agreement between the U.S. Postal Service and the U.S. Department of Commerce is to occur on July 12, 2010. The business partnership will support the National Export Initiative and provide access to support for small and medium-sized enterprises interested in exporting to new foreign markets.
Currently, a relatively low percentage of American businesses export compared to other nations, and nearly 60 percent of all exporters sell to only one foreign market. More than 70 percent of the world’s purchasing power is outside the United States.
The Postal Service and Department of Commerce are expanding a partnership established in 2008. By working in cooperation to engage small and medium-sized enterprises interested in expanding into new markets, the doorway to exporting will become easier than ever for small and medium-sized companies in the U.S.
The Commerce Department, with its network of trade specialists posted in 109 U.S. cities and at 128 U.S. embassies and consulates in 77 countries, and the Postal Service, with its unparalleled access to communities across America and ability to serve as a gateway to the globe, together represent a significant resource for domestic companies seeking new markets as a pathway to growth.
New Chairman and CEO at Magyar Posta - July 8, 2010
[Post & Parcel.]Magyar Posta has appointed István Kalmár as chairman and Pál Schmidt as CEO.
The Board of Directors of the Hungarian State Holding Company finalised the appointments on 24 June.
The position of deputy CEO, Business, will be held by Dezso Varga, and the position of CFO will be filled by Attila Rajnai.
István Kalmár is an electric engineer and information technology specialist. He has been co-owner and managing director of companies engaged in information technology. Between 1997 and 1998 he was the expert of large infrastructural investments at Magyar Fejlesztési Bank (Hungarian Development Bank).
Between 1998 and 2000 he was the Deputy Chairman of APEH (Hungarian Tax and Financial Control Administration), from 2000 he was the Chairman of the Supervisory Board of Magyar Posta, and then from November of the same year until June 2002 he was the Chairman and Chief Executive Officer of the company.
His name and this period is associated, among others, with the implementation of electronic public procurements, the establishment and implementation of the Student Loan programme, the design of the new logistics centre for Magyar Posta, as well as the establishment of the Magyar Posta insurance companies.
Pál Schmidt graduated at the Budapest University of Economic Sciences, specialising in international relations, and also studied at the Passau University and at the Thames Valley University of London.
From 1997 on he worked in various consulting and management positions in the information technology sector, he managed the logistics and e-commerce projects of Oracle Hungary for close to five years.
From 2002 on he was engaged in service activities related to information technology, in the implementation of company management systems and purchase systems for large companies, as well as in the development and operation of customised systems.
USPS Proposes Price Changes - July 7, 2010
[Press Release.]A new Forever Stamp image will be available as part of a pricing package that would add less than 13 cents a month to the average American household’s budget.
The U.S. Postal Service Governors recommended increasing the price of a First-Class stamp 2 cents to 46 cents and authorized the production of a pane of four evergreen tree branches as the newest image for Forever Stamps. The price of a postcard would increase 2 cents to 30 cents.
The Postal Regulatory Commission must approve the recommended price changes. The increases would not go into effect until January 2, 2011. It would be the first stamp price increase in almost two years.
Holiday Evergreen Forever Stamps will be available to the public in October at the current rate of 44 cents. Once purchased, the stamps are valid literally forever – despite any future price changes. No additional postage will ever be needed.
Faced with plummeting mail volume traced to the recession and increased use of the Internet, the Postal Service is projecting a deficit of nearly $7 billion for the next fiscal year. Despite eliminating millions of work hours and reducing expenses by more than $1 billion every year since 2001, a budget gap remains.
The proposed price changes, if approved, will raise about $2.3 billion for the first nine months of 2011. Postmaster General John E. Potter said he does not want customers to bear the burden of dramatic price increases. Instead, Potter announced in March that pricing would be one in a series of solutions the Postal Service is pursuing to become financially sound.
“There is no one single solution to the dire financial situation that the Postal Service faces,” Potter said. “These proposed rate adjustments are moderate and part of a fair and balanced approach to insuring mail service for all Americans well into the future.”
Other actions outlined in March included changes to delivery frequency, restructuring prepayments of retiree health benefits, creating a more flexible workforce and expanding access to products and services to places more convenient to customers.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.
Incentives Included in USPS Price Filing
Volume discounts and free additional weight are included in the proposed price changes the U.S. Postal Service filed with the Postal Regulatory Commission (PRC) today.
Price changes for the majority of products and services fall between 4 percent and 6 percent. These products and services account for about 90 percent of Market Dominant revenue. The Postal Service Governors approved the recommendation for prices for all 18 Market Dominant products.
Products outside the range include Periodicals (8 percent), Standard Mail Parcels (23 percent) and Media/Library Mail (7 percent). The increases above the average are intended to improve the financial performance of products that currently do not cover costs while limiting the impact on customers.
The filing includes two incentives designed to retain and grow profitable mail volume: “Reply Rides Free” and “Saturation Mail/High Density Incentive Program.”
Reply Rides Free encourages the use of bill and statement mailings for marketing messages. For qualifying customers, a 1.2-ounce piece is charged the 1-ounce price if a reply envelope or card is included in the mailing.
The Saturation Mail/High Density Incentive Program provides rebates for volume growth for Standard Mail and Nonprofit Mail letters and flats. A minimum of six Saturation/High Density mailings in a Fiscal Year is required.
If approved as proposed, the new prices would take effect on Jan. 2, 2011 – almost two years since the Postal Service last raised rates.
The proposed price changes would generate $2.3 billion for the last three quarters of the 2011 Fiscal Year (January to September) and an estimated $3 billion for the full 12 months of Fiscal Year 2012.
Despite eliminating millions of work hours and reducing expenses by more than $1 billion every year since 2001, a budget gap remains. The proposed price increases will help close a $7 billion projected shortfall in FY 2011. The Postal Service would have needed to raise rates an average of 20 percent across all product lines to completely close that expected gap.
“This proposal is moderate and reasonable and carefully evaluated for its effect on our customers,” said Maura Robinson, vice president, Pricing. “Increasing prices will help overcome some of the financial challenges faced by the Postal Service. We will continue to work with Congress and other stakeholders to implement long-term solutions.”
Postmaster General John E. Potter identified in March a number of actions the Postal Service will pursue, including a change to delivery frequency, expanded access to products and services more convenient to customers and restructuring prepayment of retiree health benefits. Potter was clear at the time that customers would not be asked to close the entire budget gap.
Innovations like Reply Rides Free and Saturation Mail incentive programs reinforce the value of mail, help retain volume and provide opportunities to grow the business. These products also have proven to cover their costs and contribute much needed revenue to the Postal Service. Still, greater product and pricing flexibility is needed if the Postal Service is to remain a vital driver of the American economy.
“Future price increases can be greatly alleviated if the Postal Service is given the tools necessary to be a more flexible, market-oriented company,” Robinson said.
Other highlights from the price filing include:
• First-Class Mail stamps would increase to 46 cents. A new Forever Stamp image will be available in October.
• First-Class Mail postcard prices would increase 2 cents to 30 cents.
• Periodicals would receive an 8 percent increase.
• Recommended increase for catalogs is 5.1 percent.
• Standard Mail parcels would increase about 23 percent.
This is the first time the Postal Service is requesting price increases above the rate of inflation, an action that is allowed under the 2006 Postal law as long as the Postal Service can demonstrate “exceptional or extraordinary circumstance.”
An ongoing recession that has rocked the Postal Service business customer base, continued movement toward electronic alternatives and unprecedented volume loss have created a situation where the price cap of 0.6 percent, based on the Consumer Price Index, is insufficient to cover the extraordinary losses.
The PRC has 90 days to review and make a final ruling on the filing (on or about Oct. 4). The PRC can accept or reject all price requests.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.
TNT Express Raises Rates In Europe By 3.5 Percent - July 7, 2010
[Press Release.]TNT is increasing rates within Europe for its Express services by an average of 3.5 percent as part of a global yield improvement program.
TNT remains fully committed to the continued investment in its infrastructure in order to maintain the highest levels of service to its customers.
Swiss Post In Your Pocket - July 7, 2010
[Press Release.]Swiss Post is expanding its services that combine the physical and digital worlds. Furthermore, it is launching new services that can be used via a mobile phone. People can call up inforz">Press Release.]mation while on the move, read the mail delivered to their homes via the Swiss Post Box electronic mailbox and handle payments and account queries via PostFinance Mobile. By creating the product house «eSolutions» in its Swiss Post Solutions unit and offering innovative products for both business and private customers, Swiss Post is turning into a hybrid service provider.
With online services for private and business customers and the digitization of documents and their integration into electronic business processes, Swiss Post has been well positioned on the market for innovative services for years. Swiss Post is pursuing a systematic innovation strategy which, in addition to expanding its central function as a hub between the physical and digital worlds, now also makes it possible to develop offers that can be used via modern mobile devices.
The first «Apps» will soon become available, starting with the new Smartphone application from Swiss Post. The new Swiss Post App is useful for meeting information needs in particular and will complement the internet portal. Users will appreciate the Swiss Post location search, price inquiries and the consignment tracking function as important components of the Swiss Post App. It is now possible to find out where the nearest post office is or until when the nearest express counter will remain open – conveniently from a mobile phone. It is also possible to obtain an answer about whether a parcel is already on its way and where the PickPost point for collection is located. Both applications use a clear navigation, efficient search filter and are based on a card which takes the user’s location into account, if requested. The app also provides information about the most important prices for mailing letters and parcels.
The Swiss Post App was developed for iPhones, iPads and android mobile phones and will also be available for operating systems such as Symbian and Windows Mobile 7 by the end of 2010.All enquiries can also be handled via the mobile phone browser. Expansions are being assessed which would allow customers to access services and, for instance, place orders via their mobile phone. In addition, PostFinance will launch an app for financial services in late summer. Payments made directly from a postal account via a mobile phone are already a reality – and are exclusive in Switzerland.
The Swiss Post Box was launched in summer 2009 as an iPhone app for business customers. Physical mail can be scanned upon request and made available on a secure Internet portal and then archived or destroyed. Mobile access to a personal electronic mailbox will now be more attractive, thanks to a new price schedule for private customers, as they will pay only for the time actually used – for instance, if they do not want to miss out on reading their daily post while on holiday.
Canada Post to Issue Up To $1 billion in Long-Term Debt - July 6, 2010
[Press Release.]Canada Post Corporation today announced its intention to issue up to C$1 billion in long-term debt, consisting of two series of bonds with terms up to and including 30 years.
Net proceeds of the offering will be used primarily to finance the company’s “Postal Transformation” modernization program. This multi-year investment in new facilities, equipment and systems will enable Canada Post to protect and enhance service to Canadians, increase its competitiveness, improve working conditions and safety for employees and improve the financial sustainability of the company. The modernization plan is expected to generate $250 million in annual cost savings by 2017.
The Government of Canada recently increased Canada Post’s external borrowing limit to $2.5 billion from $300 million in order to facilitate financing of Postal Transformation. “By increasing our debt to a level that is appropriate for a company of our size and financial profile, Canada Post will be able to invest in its critically-needed modernization” said Wayne Cheeseman, Chief Financial Officer, Canada Post. “This debt offering will enable the company to increase its financial flexibility, invest in its future and keep serving Canadians while remaining financially self-sufficient.”
TNT Increases Air Freight Capacity Between China And Europe - July 6, 2010
[Press Release.]TNT is increasing its air freight capacity between China and Europe to meet growing demand. Starting today, the company is scheduling an additional Boeing 747-400 ERF aircraft between China and its European air hub in Liege, Belgium (as announced on 8 April 2010). TNT will increase its service frequency to six flights per week from Shanghai and five flights per week from Hong Kong. TNT is responding to the stronger demand in China for its air services, especially from the high-tech and fashion industries.
Chinese exports to Europe rose almost 50 percent during the five first months of 2010 from a year before, according to the Chinese General Administration of Customs. During the same period, the bilateral trade between China and the EU totaled $177 billion, an increase of 37.4 percent over last year, confirming the EU's position as China's number one trade partner.
Our continuous investment demonstrates TNT's long-term confidence in China and our commitment to enhancing our service capabilities, said Michael Drake, Regional Managing Director of TNT North Asia. With our integrated air and road delivery capabilities in China and Europe, we are well-positioned to capitalize on the strong trading links between these two trading regions.
UPU’s Letter Post Compendium Goes Online - July 6, 2010
[Press Release.]The electronic version of the Letter Post Compendium is now online. The Compendium enables postal retail employees to more easily consult the range of letter-post products offered by Posts around the world and better serve their customers.
USPS Rated Among Best in Diversity - July 9, 2010
Itella Acquires Smartpost’s Estonian Network - July 9, 2010
New Chairman and CEO at Magyar Posta - July 8, 2010
TNT Express Raises Rates In Europe By 3.5 Percent - July 7, 2010
Swiss Post In Your Pocket - July 7, 2010
Canada Post to Issue Up To $1 billion in Long-Term Debt - July 6, 2010
UPU’s Letter Post Compendium Goes Online - July 6, 2010
