APWU Slams Postal Service on BMC Name Change
APWU Slams Postal Service on BMC Name Change
APWU Web News Article #086-09, July 29, 2009
In a letter to USPS management [PDF], APWU President William Burrus admonished the Postal Service for failing to officially notify the union that the Bulk Mail Center network has been renamed the Network Distribution Center network.
“We have negotiated contractual provisions specifically applicable to the BMC and must discuss the ramifications of the change to contractual provisions,” he wrote on July 24. “I am disturbed that the union has not been officially notified of the change and I demand a full explanation.”
The APWU became aware of the official name-change when it came into possession of a copy of a notice to USPS officers informing them of the change.
The union received official notification [PDF] on July 28.
USPS Begins Realignment of Bulk Mail Center Network
NETWORK DISTRIBUTION CENTERS
USPS REVAMPS BMC NETWORK TO IMPROVE EFFICIENCIES
Postal Service plans to realign its bulk mail center (BMC) network and transform it into a three-tier system of Network Distribution Centers (NDCs) have begun.
Explaining the new system to business mailers attending the National Postal Forum last week, Senior Vice President of Operations Bill Galligan said Phase I began earlier this month in the Northeast corridor, with the Springfield and Philadelphia BMCs becoming Tier 1 sites, and the New Jersey BMC becoming a Tier 2 site.
Outgoing volume from the Springfield and Philadelphia BMCs is sent directly to the New Jersey BMC for consolidation, processing and dispatch. The concept will be tested for 12 weeks and then evaluated before rolling out Phase II.
Galligan said this will allow USPS to consolidate the processing of originating mail into fewer sites to increase efficiency and reduce transportation costs, while expanding the surface transportation reach for more products.
The new network — when fully implemented — will include:
Eleven Tier 1 NDC facilities which will process and distribute local and destination Standard Mail, periodicals and package services.
Six Tier 2 facilities which will perform all Tier 1 activities, plus distribution of outgoing Standard Mail, periodicals and package services into the network.
Four Tier 3 facilities which will perform all the Tier 1 and Tier 2 functions and act as a consolidation point for less-than-truckload volumes from Tier 2 sites.
With the volume decline and changes in the mail mix, much of the mail the 21 BMCs used to process has gone away. Even before the downturn in the economy, mailers were drop shipping mail directly to the delivery units, bypassing the BMCs entirely.
The Network Distribution Center concept was developed to reduce excess capacity to match workload, consolidate operations, increase transportation efficiency, and reduce costs. This transformation will keep the BMC facilities viable.
USPS Notifies National Mail Handlers Union Of Upcoming Changes To BMC Network
See full memo at the National Postal Mail Handlers Union website
Enclosed is a copy of the official notification that we received from the Postal Service concerning the above-cited issue. As discussed during the telecom that was held on February 26, the revised plan calls for a three tiered network in which some facilities would distribute only local and destinating mail. The Bulk Mail Centers ‘(BMCs) will be changed to Network Distribution Centers (NDCs), with three tiers of NDCs. Some of these NDCs will perform work currently performed at nearby Processing and Distribution Centers (P&DCs) and Surface Transfer Centers (STCs).
Below is the anticipated structure of the three Tier NDCs:
• Tier 1 NDC facilities will be re.sponsible for local and destination standard mail, periodicals and package services. They also will perform STC containerization and dispatch operations for outgoing and incoming mail.
• Tier 2 facilities will be responsible for all Tier 1 activities, plus distribution of outgoing standard mail, periodicals, and package services to the network.
• Tier 3 facilities will perform all the Tier 1 and 2 functions and also will act as a consolidation point for less-than-truckload volumes from Tier 2 sites.
Eventually, all BMCs are expected to become NDCs; the first three will be the Springfield (MA), Philadelphia, and New Jersey BMCs. These three are expected to be the “test sites” before the entire program ramps up.
USPS Abandons Plan to Outsource BMC Network
APWU News
Management to Revamp BMC Network
The Postal Service has abandoned plans to outsource the work performed at 21 Bulk Mail Centers, and instead will revamp the BMC network, the USPS Senior Vice President for Operations told the APWU on March 10.
The change in strategy was prompted by the nation’s financial crisis and the subsequent drop in the volume of flats. “The world changed under our feet,” William Galligan explained in a briefing at union headquarters for APWU leaders at the national and local level. “It would be foolhardy to proceed with a plan that was based on flat volume growth.” In July 2008, the Postal Service announced plans to outsource work performed at the BMCs, and informed the union of plans to locate Flat Sorter Sequencing (FSS) machines at the facilities.
The revised plan calls for a three-tiered network in which some facilities would distribute only local and destinating mail. The renamed Network Distribution Centers (NDCs) would continue to process standard mail, packages, and some periodicals. Significant changes also are planned for transportation within the network.
According to the plan, which is scheduled to begin in mid- to late-April:
Tier 1 NDC facilities will be responsible for local and destination standard mail, periodicals and package services. They also will perform STC containerization and dispatch operations for outgoing and incoming mail.
Tier 2 facilities will be responsible for all Tier 1 activities, plus distribution of outgoing standard mail, periodicals, and package services to the network.
Tier 3 facilities will perform all the Tier 1 and 2 functions and also will acts as a consolidation point for less-than-truckload volumes from Tier 2 sites.
Phase 1 will begin in the northeast corridor, and will affect the Springfield (MA), Philadelphia, and New Jersey BMCs. Staffing is expected to decrease in Tier 1 and 2 sites, and to increase in Tier 3 facilities.
“We are pleased that the Postal Service has decided against contracting out BMC operations,” said APWU President William Burrus, “but we withhold any endorsement of the new plan until we are able to determine its impact on service and on employees represented by the APWU.
“We will monitor the progress of the new plan closely, and we will vigorously enforce the Collective Bargaining Agreement as it is implemented.”
To view a copy of the USPS presentation, click here.