THE BULLETIN BOARD
July 2009
[July 1st]Consolidating Stations
excerpted from APWU Web News Article #076-09
At a meeting at USPS Headquarters on June 23, the Postal Service briefed APWU Clerk Craft officers about plans to consolidate operations in large stations and branches. Managers also provided the union with an updated list of 3,243 stations and branches in Level-24-and-above installations that are being reviewed.
At the briefing, postal officials said that among the stations under review, 740 already had been identified as candidates for consolidation and/or closing. (The Postal Service has not yet provided the list to the APWU. Managers said they anticipated only a 60-day process for making these decisions, including a 10-day window for input from affected customers.
USPS officials conceded that among the reasons for closing stations and branches is that there are fewer "procedural requirements" for closing stations and branches than for small post offices. They also said that 34 percent of current postal revenue comes through alternative access, and that they are striving to increase that percentage.
"These offices have experienced serious volume, transaction, and revenue declines. ... Many factors including impact on employees, service standards, cost savings, customer access, environmental impact, real estate values, and long-term needs of the service would be taken into account... We would expect these local manager reviews to result in a significant increase in the number of lease terminations and/or facility disposals."
Read the entire article....[July 1st]GAO Report: Network Rightsizing
excerpted from APWU Web News Article #076-09
On May 20, the Government Accountability Office (GAO) issued a report titled "U.S. Postal Service – Network Rightsizing Needed to Help Keep USPS Financially Viable."
The GAO study concludes that due to a mail-volume decline of 10 to 12 percent, the Postal Service will suffer a loss of more than $6 billion in FY 2009; the report shows similar projections for mail volume and revenue losses for FY 2010.
The GAO criticized the USPS for failing to take the necessary steps to remain viable, such as "rightsizing its retail and mail processing networks by consolidating operations and closing unnecessary facilities," and "reducing the size of its workforce."
"The USPS has substantial excess capacity in its mail processing network," the report says. "In the Postal Accountability and Enhancement Act of 2006, Congress recognized USPS has more facilities than it needs, and strongly encouraged streamlining its networks."
The report concluded that "USPS can streamline its retail network while improving access by closing unnecessary retail facilities and promoting lower-cost alternatives such as purchasing stamps by mail, telephone, and the Internet, as well as carrier pickup of packages." Although the USPS has long recognized the need to adjust its retail network, the report said, it "has not significantly downsized its retail operations in recent years."
Read the entire article....
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