Realignment of Postal Service Facilities Saving Millions
WASHINGTON — The ongoing realignment of postal facilities to better fit the changing needs of customers is saving the Postal Service millions of dollars — but it and other cost-cutting measures are not enough to stave off a fast-approaching liquidity crisis, a House subcommittee was told today.
“The Postal Service knows how to cut costs, streamline our excess processing network and make the necessary changes to bring our organization further into the 21st century,“ David Williams, vice president of Network Operations, told a subcommittee of the House Committee on Oversight and Government Reform. “Rightsizing our network is only one of many strategies the Postal Service has employed in our efforts to cut costs and improve efficiency.”
Over the last four fiscal years, the Postal Service has reduced its size by 110,000 career positions and saved $12 billion in costs. “Our achievements notwithstanding, issues that fall outside our control continue to prevent us from being able to close the gap between revenue and costs,” Williams testified. Absent Congressional action this year, the Postal Service will experience a cash shortfall and default on legislatively mandated payments to the Federal government.
The Postal Service is seeking passage of legislation that would address the statutory schedule for prefunding of retiree health benefits, address the overfunding of pension benefits and provide authority to adjust delivery frequency. Lack of action would result in consequences stretching into fiscal year 2012 and threaten a mailing industry that pumps more than $1 trillion into the nation’s economy each year and employs more than 7 million Americans.
“More than 90 percent of mail-related jobs are in private companies of all sizes. The success of these firms and their millions of employees depend on a healthy and thriving Postal Service,” Williams said.
Williams said legislative action must occur in concert with the continued efforts of the Postal Service to reduce costs by trimming its network footprint. Area Mail Processing (AMP) studies have been used since the 1970s to reduce a sprawling mail processing network that consisted of more than 2,000 facilities. Today, the Postal Service has reduced outgoing mail processing facilities to fewer than 300. The Office of Inspector General has conducted 35 audits related to AMP studies and consolidations since 2005 and in each case found that a valid business case existed to support the Postal Service’s consolidation action.
The Postal Service is taking a similar business case approach to streamline the number of postal-operated retail locations, which totals approximately 32,000. With nearly 100,000 places to buy stamps and ship packages — including grocery stores, drug stores, office supply stores and other retail locations — customers have more than double the number of retail outlets for postal products and services as the number of brick-and-mortar Post Offices. With usps.com, customers can request free Priority Mail Flat Rate packaging, print a label, pay for postage with Click-N-Ship and request free Carrier Pickup for packages.
source: USPS
Mike, you are right on the money. The PO has too many employees wearing uniforms with that “I’m entitled to this job cause its a guvmint job”. I depise that attitude. The contract people, HCR,s for example, are just as bad.
TO USPS P.M. I DON’T NEED TO EDUCATE MY FAMILY ABOUT THE POSTAL SERVICE. MY FATHER WAS A MAIL HANDLER, MY WIFE IS RETIRED FROM P.O.,MY TWO SISTERS IN LAW ARE A CLERK AND CARRIER,MY DAUGHTER IS A WINDOW CLERK. I DO THINK MY JOB IS A BLESSING. MY PROBLEM IS THAT NOBODY WANTS TO TELL IT LIKE IT REALLY IS. MANAGEMENT AS A WHOLE IS TERRIBLE. THE WORK ETHIC FROM THE CRAFT IS JUST AS BAD. DON’T GET ME WRONG. THERE ARE STILL SOME GREAT FOLKS IN THE POSTAL SERVICE! BUT THE ENTITLEMENT ATTITUDE IS TAKING OVER .WHEN DID THE POSTAL SERVICE OWE SOMEONE A JOB FOR NOTHING IN RETURN? NOW FOR EAS EMPLOYEES. TELL ME WHY WE CLOSED THE SELF SERVICE STAMP MACHINES? WHY ARE WE GIVING DISCOUNTS FOR PREPPING THE MAIL TO WALK SEQUENCE AND THEN MIXING IT BACK IN THE FLOW TO GET ALL THE MAIL IN WALK SEQUENCE? WE PAY OVERTIME TO DO THIS! WHY DOES MANAGEMENT LET THE SLACKERS DO AS LITTLE AS POSSIBLE WHILE GIVING THE PRODUCTIVE WORKERS MORE TO DO? OUR TIME HAS COME AND GONE! TECHNOLOGY IS WIPING OUT FIRST CLASS MAIL! WE NEED TO GET THE PARCEL BUSINESS! PEOPLE DON’T MIND PAYING FOR A SERVICE THAT THEY CAN COUNT ON. ALL OF US NEED TO BRING THE CUSTOMERS BACK BY DOING THE JOB RIGHT AND FAST!! WE NEED TO TRIM THE FAT OF THESE NON PRODUCTIVE COSTS.HOW MANY MANAGERS NEED TO COUNT THE MAIL? I AM SURE THAT CONESTOGA STILL MAKES THE BEST WAGONS!!! THE TROUBLE IS NO ONE NEEDS ONE! ONE DAY FIRST CLASS LETTERS WILL SUFFER THE SAME FATE! LETS GET IN THE PACKAGE FIGHT AND REALLY MEAN IT!
Fact: The USPS is AHEAD 1.5 billion over the last 4 years without the Postal “Reform” Law. In 2005 the USPS had NO debt.
They just cut 14 out of 64 routes in my station.
Did we lose one of our four manager positions? NO!!
Instead, they added a fifth manager position (204b).
So we now have about 20 percent less workers to be supervised, yet we add 20 percent more to the supervisor ranks.
Do we understand how we could be losing money?!
I have read all of your blogs and I have one question for the commenters who are actually Postal workers who dare to speak negatively against the Postal Service. Did anyone put a gun to your head when you applied for a Postal job and furthermore does anyone have a gun to your head to stay? Our jobs, though not perfect, are a blessing. In most communities we make more than the average worker and certainly have far better benefits. No matter if you are craft or management you have felt the tightening of the belt trying to save OUR Postal Service. I know many believe that the Postal Service is not floundering, well it is, I have been on Capital Hill asking our representatives to support the Postal Service, have you? Before you spout off about craft or management or what may causing the woes to the Postal Service you need to educate yourself and helping your family members and friends understand that we are still a bargain, reliable and secure for .44. Encourage businesses to use our products for their shipping needs and provide Customer Service to our communities. If we can win over our neighbors instead of jumping on the band wagon of bad press it will fow through out the country and restore the Postal Pride. We are in this together. We will ALL be on the unemployment line together if we don’t all do what we can to protect the future of the Postal Service.
I absolutely agree with everything Mike just said!!!!!!!!!!!!!!!!!!!!!!!!!1
PO has you all brainwashed. Theyre making plenty of money, just not as much as they used to. If they werent making money theyd shut it down. It may happen in the future but it aint gonna happen now because theyre still making plenty of cash
Hey who needs people to people contact. NO GERMS NO POST OFFICES NO BANKS JUST PLAY VIDEO GAMES AND MASTURBATE ON CYBER SEX SITES. THIS IS THE WORLD WE WANTED FAT PASTY FLUBBY TIT BOYS AND TROLL THUBBY WOMEN NO MORE CHECK OUT PEOPLE WITH SELF SERVICE BARCODE SCANNERS. NO MORE WORKERS JUST BIG FAT SLUGS WITH WITH PEANUT ALLERGIES AND ANTI BULLYING LAWS.CHINA IS RAPIDLY DEVELOPING PEANUT BUTTER BOMBS AND HUGE MEGAPHONES TO PICK ON OUR SISSY TEEN BOYS WITH BREASTS. YAYYY THE AMERICA I ALWAYS WANTED GO PATHETIC INTERNET DWEEBS BUT WHO IS GONNA GROW OUR FOOD AND BUILD OUR HOUSES? WE DESERVE TO COLLAPSE AND LET THE CORPORATE GEEKS TAKE OVER.
the only way to save this post office is to eliminate substandard rates for bulk /standard/political/and anything else that is not first class mail. charge first class for everything. same for parcels priority is by air. parcel post is by truck we don’t need media,book or library rates charge by means of shipping not contents.
Shut the front door on Sunday and Monday!! this eliminates the cry I cant get my package during the week. and the mail is delivered on Saturday so the business can pick up first thing Monday and go to work
Oh great, yet ANOTHER vice president that doesn’t know squat addresses Congress.
And why is this clown doing this speech, instead of the (equally incompetent) chief financial officer ? Wouldn’t that make more sense ? Not in the postal world……….
Interesting, the US needs only one VP, yet the Postal Circus needs almost forty !
Until the bloated mgmt. ranks are drastically reduced, nothing will change.
Not that it will matter; that postal circus is going down, and nothing can change that.
AS LONG AS WE SHUFFLE MANAGERS, WITHOUT CUTTING THEIR NUMBERS, ELIMINATE JOBS THAT DON’T ACTUALLY HANDLE THE MAIL, SUCH AS COUNTING EMPTY EQUIPMENT, WE WILL CONTINUE TO GO DOWN FAST. WE TREAT STANDARD MAIL BETTER THAN FIRST CLASS. WE DO THIS TO GET THE ALMIGHTY NUMBERS RATHER THAN WORRY ABOUT THE PRIORITY AND FIRST CLASS STANDARDS. WE GIVE DISCOUNTS FOR WALK SEQUENCE MAIL THEN MIX IT BACK WITH THE REST OF THE MAIL TO GET IT ALL IN WALK SEQUENCE! WE SEND MAIL TO AN F.S.S. OFFICE AT THE SAME TIME THAT THEY SEND THEIR PRIME FLATS TO US TO WORK BECAUSE THEY HAVE TOO MUCH MAIL! WHAT IS GOING ON HERE? BAD MANAGEMENT! NO ONE IS HELD ACCOUNTABLE! DON’T BLAME IT ALL ON THE PRE FUNDING! WE ARE FULL OF PEOPLE WHO THINK THAT DOING WORK IS A JOKE. LET’S TELL IT LIKE IT IS!
“early out” has serious MYOPIA…
what about those employees that ARE NOT AT THE TOP STEP OF THEIR LEVEL, like you apparently are??
this is a dopey idea.
got any more?
how about a “contract holiday” where the USPS does not have to give you any thing
other than MINIMUM WAGE and NO BENEFITS FOR A YEAR OR TWO???
The best way to reduce cost and help this country is by offering early retirement thru a higher percentage per year than 1 percent. Then hiring thousand of veterans to back fill the newly created vacantances.
No way the USPS gets the 50-70 billion in over payment to CSRS or 7 billion to FERS. This has been the cash cow that has paid for all federal agency retirements. Stop the 5.5 billion in prefunding of retiree health care? a possibility. The short term solution: A 20% pay cut across the board. This would mean craft employees would still make $20-21 p/hr. Postmaster General would reduce his pay by $50,000.00 per year, A Postmaster $20,000 per year, a supervisor $14,000 per year. All employees( 500,000 or more) would share in the sacrifice. Secondly, watch all those eligible for retirement, actually retire instead of hanging around.
Ahh Ben you speak of a multitude of negativeness but do not see the clear truth… Had the USPS NOT been required to prefund anything they still would have made money. Despite all the social networks and going paperless and go green (which is a lie because most paper in the US is recycled and there are parts in computers which are LETHAL and can not be recycled) the USPS would have made a couple hundred million dollars. The USPS starts the fiscal year BILLIONS in the hole because of Congress. You could eliminate ALL delivery and the USPS would still start of losing 5.5 billion from Oct.1. No social network can mail me a package. The banks and mortgage companies are saving millions by encouraging people to use the internet even to the point of now charging to have a statement delivered by US mail. What they and you fail to realize it costs money to have or get the internet, it is not free and in fact costs more (no more person to person conversations or handwritten letters the personal touch is gone) than people actually realize. How do you think companies can offer free shipping? Because they save money by eliminating humans. If this cycle continues, the USPS will be the first to fall, then there will be no need for any brick and mortar banks. The young generation is being deliberately placed at a disadvantage, what will they do if the entire cell, smartphone industry collapses? They will have to be trained on how to do things with pen and paper. The USPS will most likely survive if Congress gets its hand out of the cookie jar.
The reality is the decline in revenue and the lack of control to curb expenses.
The USPS spends more money daily than it takes in and no control measures to make all expenses be accounted for from local office up the ladder to headquarters. Mail volume will continue to decline as time has evolved into the advanced technological age where the INTERNET connects businesses and individuals. The younger generation is schooled in computer science: new APPS are being made available constantly: smart phones texting are being used by all social and income classes. This is eliminating people and business using the written message via postal mail. The government has mandated that treasury and social security checks be set up for direct deposit by 2013. Companies are encouraging customers to go green or paperless.
Revenue will continue to decline as First class volume the core product has already declined significantly; periodicals, newspapers, magazines are basically nonexistent in the mail system.
Cost control must be maximized; employee roles reduced to maximize automation, Offices that are no longer need due changing demographic moving offices from rural to suburban setting over time.
6 day mail delivery is service provided but no longer needed. SAT. street address delivery is a total wasted expense. Eliminating Sat. delivery would reduce fuel cost for 193,000 vehicles and delivery personnel. Reducing delivery days from 302 to 250 would significantly reduce cost. Services provided have hit diminishing returns and must be brought inline as to the cost factor. Should this need Constutional action to a title then proceeded with whatever is needed.
There is always an emotional story of delivering parcels, prescriptions, checks on Sat.: this has no credence and is an emotional reply as employee has own self interest as to employment.
Politicans, Congress must take a stand against politics, parties and pressure groups who have no concern for USPS other than DOLLAR interest for whom they represent..