Postal Service Moves Ahead with Modified Network Consolidation Plan
17 May 2012 | No Comments | posted by admin | in News
9-Month Implementation; $1.2 Billion in Cost Reductions
WASHINGTON— TheU.S.Postal Service today announced plans to move ahead with a modified plan to consolidate its network of 461 mail processing locations in phases. The first phase of activities will result in up to 140 consolidations through February of 2013. Unless the circumstances of the Postal Service change in the interim, a second and final phase of 89 consolidations is currently scheduled to begin in February of 2014.
“We revised our network consolidation timeline to provide a longer planning schedule for our customers, employees and other stakeholders, and to enable a more methodical and measured implementation,” said Patrick R. Donahoe, Postmaster General and Chief Executive Officer of the Postal Service.
“We simply do not have the mail volumes to justify the size and capacity of our current mail processing network. To return to long-term profitability and financial stability while keeping mail affordable, we must match our network to the anticipated workload,” said Donahoe. “Our current plan meets our cost reduction goals, ensures seamless and excellent service performance throughout the implementation period, and provides adequate time for our customers to adapt to our network changes.”
The Postal Service will begin consolidating operations this summer – which mostly involve transferring mail-processing operations from smaller to larger facilities. Due to the volume of high-priority mail predicted for the election and holiday mailing seasons, no consolidating activities will be conducted from September through December of 2012. Approximately 5,000 employees will begin receiving notifications next week related to consolidating and other efficiency-enhancing activities to be conducted this summer.
“We will be conducting consolidation activities this summer at only 48 locations,” said Megan Brennan, chief operating officer of the Postal Service. “As a result, nearly all consolidating activities in 2012 will occur in August and then will resume again the early part of next year.”
These consolidating activities will reduce the size of the Postal Service workforce by approximately 13,000 employees and, when fully implemented, will generate cost reductions of approximately $1.2 billion annually.
“The Postal Service will be communicating with our customers and employees about these changes in great detail,” said Megan Brennan. “We will work closely with our customers to ensure there are no surprises as we move forward.”
The Postal Service also announced it is working with its unions for an employee retirement incentive, although no final decision has been made. “The Postal Service has reduced the size of its workforce by 244,000 career employees since 2000 without resorting to layoffs,” said Brennan. “We are a responsible employer and we will work with our employees to ensure a smooth transition to a much leaner organization.”
The Postal Service also announced that it would soon issue a new regulation to modify its existing Service Standard for overnight delivery. The Postal Service said a Final Rule would soon be published in the Federal Register that would initially shrink the geographic reach of overnight service to local areas and enable consolidation activity in 2013. The new rule would further tighten the overnight delivery standard in 2014 and enable further consolidation of the Postal Service mail processing network absent any change to the circumstances of the Postal Service.
“We are essentially preserving overnight delivery for First-Class Mail through the end of 2013, although we are collapsing the distance that we can provide overnight service to the distribution area served by a particular mail processing facility,” said Megan Brennan. Approximately 80 percent of First-Class Mail will still be delivered overnight.
The Postal Service stated its expectation to pursue additional consolidation activities for an additional 89 mail processing locations beginning in 2014 unless its circumstances change. These consolidations would be based on long-term service standards that would significantly revise mail-entry times for customers seeking overnight delivery.
“Given that the Postal Service is currently projecting a $14 billion net loss in FY2012, and continuing annual losses of this magnitude, we simply cannot justify maintaining our current mail processing footprint,” said Donahoe.
When fully implemented in late 2014, the Postal Service expects its network consolidations to generate approximately $2.1 billion in annual cost reductions, and lead to total workforce reduction up to 28,000 employees.
The list of 140 mail processing locations to be consolidated by February of 2013 is available after 3 p.m. ET today at http://about.usps.com/news/electronic-press-kits/our-future-network/welcome.htm.
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
New Strategy to Preserve the Nation’s Smallest Post Offices
10 May 2012 | No Comments | posted by admin | in News
WASHINGTON — The U.S. Postal Service announced a new strategy today that could keep the nation’s smallest Post Offices open for business, while providing a framework to achieve significant cost savings as part of the plan to return the organization to financial stability.
The plan would keep the existing Post Office in place, but with modified retail window hours to match customer use. Access to the retail lobby and to PO Boxes would remain unchanged, and the town’s ZIP Code and community identity would be retained.
“Meeting the needs of postal customers is, and will always be, a top priority. We continue to balance that by better aligning service options with customer demand and reducing the cost to serve,” said Postmaster General and CEO Patrick R. Donahoe. “With that said, we’ve listened to our customers in rural America and we’ve heard them loud and clear – they want to keep their Post Office open. We believe today’s announcement will serve our customers’ needs and allow us to achieve real savings to help the Postal Service return to long-term financial stability.”
The new strategy would be implemented over a two-year, multi-phased approach and would not be completed until September 2014. Once implementation is completed, the Postal Service estimates savings of a half billion dollars annually.
“The Postal Service is committed to serving America’s communities and providing a responsible and fair approach for our employees and customers,” said Megan Brennan, Postal Service Chief Operating Officer. “The Post Offices in rural America will remain open unless a community has a strong preference for one of the other options. We will not close any of these rural Post Offices without having provided a viable solution.”
The Postal Service will provide an opportunity for the Postal Regulatory Commission (PRC) to review this plan prior to making any changes. The Postal Service intends to file a request for an advisory opinion on the plan with the PRC later this month. Community meetings would then be conducted to review options in greater detail. Communities will be notified by mail of the date, time and location of these meetings.
This new option complements existing alternatives, which include:
- Providing mail delivery service to residents and businesses in the affected community by either rural carrier or highway contract route;
- Contracting with a local business to create a Village Post Office; and
- Offering service from a nearby Post Office.
A voluntary early retirement incentive for the nation’s more than 21,000 non-executive postmasters was also announced.
Survey research conducted by the respected Opinion Research Corporation (ORC) in February, showed 54 percent of rural customers would prefer the new solution to maintain a local Post Office. Forty-six percent prefer one of the previously announced solutions (20% prefer Village Post Office, 15% prefer providing services at a nearby Post Office, 11% prefer expanded rural delivery). This strategy would enable a town to possibly have a Post Office with modified hours, as well as a Village Post Office.
The Postal Service has implemented a voluntary moratorium on all postal facility closings through May 15, 2012. No closings or changes to Post Office operations will occur until after that time.
In addition to maintaining a retail network of more than 31,000 Post Offices, the Postal Service also provides online access to postal products and services through usps.com and more than 70,000 alternate access locations. Nearly 40-percent of postal retail revenue comes from purchases on usps.com and through approved postal providers such as Wal-Mart, Staples, Office Depot, Walgreens, Sam’s Club, Costco, and many others.
A list of Post Offices affected by today’s announcement and additional details will be available after 4 p.m. ET today at http://about.usps.com/news/electronic-press-kits/our-future-network/welcome.htm
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
International Mailing to Prohibit Lithium Batteries
10 May 2012 | No Comments | posted by admin | in News
Starting May 16, lithium batteries and electronic devices containing lithium batteries will be prohibited from being mailed internationally. They also will not be allowed in shipments to or from Army Post Offices, Fleet Post Offices and Diplomatic Post Offices. Lithium batteries already are prohibited in mail shipments on international commercial air transportation under International Civil Aviation Organization and Universal Postal Union regulations.
Shippers and mailers are advised that:
- Lithium batteries must be removed from electronic devices to be shipped in international or overseas military mail before the package is submitted for mailing.
- Electronic equipment with non-removable lithium batteries may not be shipped using international or overseas military mail.
- USPS retail associates will begin asking Post Office customers whether lithium batteries are contained in any international shipments for which batteries or electronic equipment have been declared as contents on customs labels.
The new regulation will not apply to packages containing lithium batteries or electronic devices mailed within the U.S. on domestic commercial air or ground transportation.