Sen. Baldwin says bulk mailing rate amendment will help printing firms

U.S. Sen. Tammy Baldwin (D-Wis.) is championing an amendment to the postal reform bill that would curb large increases in postal rates for bulk mailers.

Baldwin visited Quad/Graphics in Sussex Wednesday morning and spoke with Milwaukee Business Journal reporters and editors Tuesday to talk about the impact of the amendment on Wisconsin’s economy. She outlined how the amendment would give postal customers “pricing predictability” and benefit forestry, paper and printing companies throughout the state like Quad/Graphics.

“Forty percent of the paper we produce ends up in the mail stream… any significant – beyond inflation increases in postage – affects our paper industry very dramatically,” Baldwin said.

Baldwin’s amendment strikes a section of the bill that would allow rates to be increased beyond the rate of inflation for bulk mailers.

“It’s pretty simple math for these folks that the postage is a significant part of their bottom line,” Baldwin said. “If it goes up, they are mailing less and nobody benefits. It’s a very important provision to get rid of.”

Joel Quadracci, president and CEO of Quad/Graphics, spoke about the issue during committee hearings on the topic earlier this year in which he told the committee:

"As discussed, above-inflation postage rate increases cannot be part of this solution (whether they are from straight rate increases or reductions in work-share discounts). The rate caps enacted as part of the Postal Accountability and Enhancement Act of 2006 (PAEA) have worked well to control postage rates and provide our clients with that much needed certainty."

Jeff Landin, president of Wisconsin Paper Council, supports the amendment.

“Now, unless changes are made to Section 301, an already difficult coated paper market is likely to see more damage due to further declines in mail volume,” Landin said. “Your efforts to provide predictable and moderate rate increases will not only benefit the paper industry in Wisconsin, it will help the USPS by providing more mail to deliver.”

More than 600 companies, retailers, nonprofits, newspapers and other organizations around the country support the amendment.

The bill is still in committee, Baldwin said.