It “may” be incentives with early out retirement
Feb. 22-23, 2012
Area Mail Processing and facility consolidation studies completed
As we heard in September of last year, the Postal Service is facing difficult decisions in light of its dire financial situation. Mail volume has dropped by more than 43 billion pieces in the past 5 years and is
continuing to decline.
With this dramatic loss, maintaining the Postal Service’s infrastructure at its current size is no longer realistic. This reality has forced the Postal Service to propose a comprehensive overhaul of its
processing and transportation networks.
Postmaster General Pat Donahoe has been sharing information with us through his “State of the Postal Service” video series. Today, he will talk more about the network changes. Please watch, and I will
have more details afterwards.
As the PMG explained, most of the Area Mail Processing and facility consolidation studies begun in September are now completed. Based on those studies, the Postal Service has made the decision to move
mail processing operations from the [STUDY SITE] to the [GAINING SITE].
Implementation of this move is contingent upon the outcome of proposed revisions to existing service standards. In addition, no implementation will take place prior to May 15 of this year, in keeping with a moratorium on closing or consolidating postal facilities, to give Congress and the Administration the opportunity to enact an
This was a difficult decision but a necessary one. With the economic downturn, the Postal Service is facing declining mail volume and increasing costs. This has left us with excess capacity at many processing plants. We have to match our resources with mail volume to hold the line on expenses. This move will help us to do that.
As a result of this action, staffing adjustments will be necessary. Any actions taken will be in compliance with applicable law, collective bargaining agreements, and Postal Service regulations and policies.
Until a transition date has been announced, mailers will continue to be able to enter mail at Business Mail Entry Units (BMEUs) at their current facilities.
In the short term, there will be no changes to locations or operating hours of BMEUs, or retail units, co-located with any facilities that were part of the studies just completed. A 120-day notice will be provided before any BMEU moves, consolidations, or changes to hours of operation.
As we heard from the PMG in his video, if the Postal Service reduces the size of its network, it also will have to reduce the size of the workforce. In that regard, the Postal Service is continuing to work with the unions and management associations about possible incentives.
Let me be clear: there is no decision on any possible incentive at this point in time, and there are no further details on what an incentive offer would entail.
If an incentive program is approved and offered, details will be posted on the new HR Web page, Workforce Connection.