The Postal Reorganization Act of 1970 included the goal of matching postal employees’ compensation with that of private sector workers. The recently enacted Postal Accountability and Enhancement Act (PAEA) did not alter that goal. However, such a comparison is virtually impossible since private sector compensation varies considerably by locale, whereas postal compensation does not. It is also difficult to decide what constitutes a comparable job, and how benefits should be considered.
Since the earliest days of the Post Office there has been a public policy goal of promoting the dissemination of information throughout the country. This goal was also part of all 14 of the rate cases conducted under the Postal Reorganization Act. By law, rates had to consider “the educational, cultural, scientific, and informational value to the recipient of mail matter.” This provision generally tempered the increases for Periodicals, or at least kept the “institutional cost burden” for Periodicals to a minimum.