In his April 15 newsletter, American Postal Workers Union President William Burrus says the recently announced “Summer Sale” will “discount our future.”

While the U.S. Postal Service has yet to make the plan public, the Direct Marketing Association issued a press release last week giving the proposal a ringing endorsement. “We are very pleased that USPS is taking advantage of the pricing flexibility that DMA worked so hard for in the passage of the Postal Accountability and Enhancement Act,” DMA president/CEO John Greco said in the release.

According to the DMA, mailers would be offered 20% to 30% discounts from June 15 to September 15 for mail volume over and above that mailer’s past mailing. How does USPS track the volume?

The Postal Service would establish a base mail volume for each mailer derived from its mailings from June 15 to Sept. 15, 2008, adjusted downward by the current mail trends for that mailer during the first two quarters of fiscal 2009. Any mail volume above that baseline would receive the “summer sale” price. The proposed “Summer Sale”, if implemented, would not take effect until the summer of 2010.

Since the Postal Service will be establishing a separate base line for each mailer and provide an appeal to each mailer to contest those calculations, most likely only the 4,000 largest Standard Mailers will be eligible this summer.

In response to declining mail volume and deteriorating financial circumstances, Burrus says the USPS has announced plans for new price incentives for major mailers. The “Summer Sale” follows the Saturation Mail Incentive Program, which proposes a rebate of 2.2 to 4 cents per piece on “incremental business” during the 12-month period beginning May 11.

Although the USPS did not issue a press release or make a public statement – it still needs to be reviewed by the Board of Governors and the Postal Regulatory Commission — about the proposals until they were disclosed on mailing-industry Websites, Burrus says the USPS is describing them as attempts to increase volume.

But is that how Burrus views them? “In fact, the new price incentives represent a further erosion of uniform rates,” he says in his newsletter. “Does anyone remember the noble principle that every mailer should pay the same amount? According to the concept of “universal service and uniform rates,” no matter where you live or who you are, postage rates should be the same. That principle is now history, and I expect that Postmaster General Potter is proud of the role he has played in its demise.”

Uniform rates, Burrus writes, “have been turned on its head with work-share discounts, drop-ship discounts, Negotiated Service Agreements (NSAs), and now the Summer Sale and Saturation Mail Incentive Programs. Each of these giveaways was portrayed as an effort to reduce postal costs or increase volume. Why then, when the giveaway programs are at their zenith, are we suffering the lowest mail volume in a decade? How does one justify giving away more money for lower volume day after day?”

As rates have been artificially reduced, volume has continued to drop — and at an unprecedented rate, Burrus says. “So, if volume does not increase as rates fall, one is left with the conclusion that these artificial rate reductions have another purpose, such as rewarding large mailers in order to maximize their profits.”

Seasonal mailings are designed to promote the purchase of goods or services at a specific time of the year, Burrus writes. “Sales notices are intended to attract interest and stimulate buying; bills and other financial matters are mailed in order to generate payment; political mailings are sent to share information and encourage an action. For these purposes, postage discounts are rarely determinative in the decision to use mail as the vehicle.”

When comparing costs, Burrus explains, “one compares the Internet, television, radio, newspapers, e-mails and hard-copy communication. Some of the forms, such as e-mail and the Internet, have significant cost advantages, but cannot compete with mail in garnering the attention of the recipient. Television, radio, and newspapers cannot target a specific audience as effectively as the mail.”

If you really want to find out much Burrus and the APWU disagree with the premise of the proposed “Summer Mail” incentive program, keep reading.

Burrus concludes his newsletter with the following: “I am sure the officials and shareholders at Pitney Bowes, National City Bank, L.L. Bean, and other major mailers appreciate the savings generated by reduced postage, but the United States Postal Service is the loser. Perhaps they will nominate PMG Potter for Man of the Year; but I nominate him for _______________. You fill in the blank.”