OIG: USPS Should Consider Eliminating 32 or More District,Area Offices
One option is to “Eliminate duplicative staff positions and better position area management to work
strategically with headquarters by relocating all area offices to headquarters.”
A recent audit report issued by the USPS Office of Inspector General:
Since 1992, the Postal Service’s workforce has decreased by almost 106,992
employees (13 percent); the cumulative total factor productivity has increased
approximately 11 percent; and mail processing automation has improved. By FY 2010,
mail volume is projected to be at the level it was in FY 1992. Since 1992, the Postal
Service’s field structure has also changed. The number of area offices has decreased
from 10 to eight and the number of district offices has decreased from 85 to 74.
However, a 2003 study for the President’s Commission on the Postal Service (“the
Commission”)4 suggested that, while the management structure was appropriately lean,
there was a real opportunity to continue to rationalize the network with regard to the
number of districts, post offices, and processing plants and this effort could enable a
reduction in the number of areas. Further, in 2007, the OIG recommended the Postal
Service develop a comprehensive workforce plan to assist with making decisions about
structuring and deploying its workforce.5
Conclusion
The Postal Service has significant opportunities to reduce costs by consolidating its field
structure. We identified two options the Postal Service should consider that would
reduce the number of area and district offices. Further, we identified a third option the
Postal Service should consider that would relocate area offices to headquarters. The
Postal Service should develop a comprehensive strategic plan that would guide future
field structure decisions and explore the viability of relocating area offices to
headquarters. At a minimum, this strategic plan would provide the Postal Service with a
method to evaluate and define an economic, efficient, and effective field structure to
oversee its universal service mission. The strategic plan would also provide the needed
foundation to develop a more flexible area and district field structure and workforce that
is responsive to changing demand. During the development of a comprehensive
strategic plan, fundamental issues such as the functional need for area and/or district
offices, right-sized staffing, operational impact, geographic distribution, and the ideal
location for area offices should be addressed.
Although the Postal Service recently consolidated one area and six district offices, we
identified three other options, done separately or in combination, to consolidate its field
structure further:
- Eliminate 14 offices by consolidating districts that have offices within 50 miles of
another district office.
- Eliminate four area and 32 district offices by consolidating those offices whose
workhours and mail volume are both below the mean mail volume and workhours.
- Eliminate duplicative staff positions and better position area management to work
strategically with headquarters by relocating all area offices to headquarters.
Implementing option 1, the most conservative of the options, closing district offices that
are within 50 miles of one another, the Postal Service can save approximately
$33.6 million annually or $289 million over 10 years. See Appendix C for monetary
impact. Option 2, closing area and districts that have less than the mean mail volume
and workhours, the Postal Service can save approximately $104 million annually or
$894 million over 10 years. We did not estimate the cost savings that could be realized for option 3 due to the many factors associated with such a move. However, we believe this option provides both overall cost savings and other non-financial benefits.
Postmasters President: Delivery Unit Optimization Is Being Implemented At Break Neck Speed
Filed under: districts, excessing, NLPM, post offices, postal, postal news, usps
From the National League of Postmaster’s President’s Message:
Delivery Unit Optimization (DUO) is being implemented at break neck speed and by Tuesday a new Power Point presentation will be on the web site. Review it, learn it and train other Postmasters on it. There are many impacts with DUO; pay, Postmaster level and the future of some Post Offices are at stake. In its original design DUO was to maximize the use of clerk resources with a secondary benefit of better use of existing building space. We want to make sure that as it rolls out across the country it does not mutate into another program that does not benefit Postmasters, the Postal Service or its customers and further jeopardizes universal service. Every National Vice President, Area Coordinator and most state Presidents are in the process of being trained on DUO so call a LEAGUE leader if you have questions and need answers.
source: National League of Postmasters – Presidents Message
What is the Delivery Unit Optimization Initiative?Delivery Unit Optimization (DUO) is a cross functional effort to streamline Delivery and Post Office Operations.
By identifying savings opportunities in operations we better position our offices for current success and future change.
Savings Opportunity Areas:
Function 4 Operations
● Complement
Office Level (Postmaster/EAS)
Facilities
● Lease
● Custodial
Transportation
● Trips/Frequency
Candidate Offices:
Grouping of post offices within 10-15 mile radius
Serviced by the same processing facility
Facility Capacities
● Excess workspace in at least 1 office
● Sufficient parking
Current Staffing
● EAS/Craft
“Hub”
● Receives delivery operations
“Post Offices”
● 9 routes or less
● Transfers delivery operations to parent office
● Retains retail window operations
● Retains post office box operations
Participating USPS Districts
Capital, N New England, Alabama, Fort Worth and Central Plains
USPS New Delivery Unit Optimization Initiative To Streamline Post Office Operations
USPS New Delivery Unit Optimization Initiative To Streamline Post Office Operations
Filed under: APWU, districts, excessing, post offices, postal, postal news, usps
After posting the news article Behind the Scenes changes may be coming to post offices PostalReporter.com received the following information:
The relocation of carriers to nearby cities is called “Delivery Unit Optimization” . This will cause affected carriers and some clerks to be excessed. Some clerk and supervisor positions will be abolished. The residual clerk work in the losing office could also be contracted out to a Contract Postal Unit or Community Post Office (see www.usps.com/postalhistory/_pdf/StationsBranches.pdf).
What is the Delivery Unit Optimization Initiative?
Delivery Unit Optimization (DUO) is a cross functional effort to streamline Delivery and Post Office Operations.
By identifying savings opportunities in operations we better position our offices for current success and future change.
Savings Opportunity Areas:
Function 4 Operations
● Complement
Office Level (Postmaster/EAS)
Facilities
● Lease
● Custodial
Transportation
● Trips/Frequency
Candidate Offices:
Grouping of post offices within 10-15 mile radius
Serviced by the same processing facility
Facility Capacities
● Excess workspace in at least 1 office
● Sufficient parking
Current Staffing
● EAS/Craft
“Hub”
● Receives delivery operations
“Post Offices”
● 9 routes or less
● Transfers delivery operations to parent office
● Retains retail window operations
● Retains post office box operations
Participating USPS Districts
Capital, N New England, Alabama, Fort Worth and Central Plains
Mike Gallagher, APWU Eastern Region Coordinator sent out the following information:
…regard to the effort we have been making in regard to our discovery of a management program (Delivery Unit Optimization) that is being implemented without any discussion with our APWU headquarter representatives.
This initiative will not only impact carriers but will have a substantial impact on clerical employees and lead to a rash of 1.6.B. cases in my estimation.
Albany District management met with some of our Locals last week to inform them that they are going to centralize a considerable number of carrier operations into one facility, the clerks will follow the operations (via excessing) and the residual remaining work in the former offices (box mail, window) will be performed by the PM of the office.
John Dirzius, APWU Northeast Region Coordinator sent out the following information:
Delivery Unit Optimization Initiative
Back on July 22, 2010 our APWU Local Leadership in the Albany District alerted NBA Pete Coradi, Eastern Regional Coordinator Mike Gallagher, and myself to a meeting scheduled by the Albany District to discuss the implementation of the Delivery Unit Optimization Initiative. In fact, this District had already completed the process of identify potential delivery units that could be consolidated.
I immediately contacted the Area as no one in the Northeast Region had any information on this newest management initiative to consolidate delivery units. Once again management failed to provide any advance notice or information to the APWU relative to this program. I further requested that there be an immediate meeting at the Regional/Area level prior to any meetings with our locals at the District level.
Brother Gallagher pursued the issue at the national level only to discover that no advance notice or information was provided to our national office as well.
In response to our collective effort President Burrus immediately sent an official inquiry to postal management relative to this initiative. This is another management “experiment” to consolidate operations and eliminate our jobs! As the presentation states…”this is a collective effort to streamline Delivery and Post Office Operations. Saving opportunities areas are Function 4 complement.”
APWU President William Burrus’ letter to John Dockins:
I am in receipt of the Delivery Unit Optimization Program which was presented as a Management Association Briefing. My records do not reflect that APWU has been
informed of the program or provided the power point presentation.
As this program may constitute a new initiative affecting APWU represented employees as referred to in Article 170f the national agreement, the union insists that
we have a voice in the development of the program.
Please respond on this matter to APWU Executive Vice President Cliff Guffey at your earliest convenience.
Chicago Mail Delivery Now Ranks among Nation’s Best
Consumer Advocate Praises Continued Performance Improvement
CHICAGO, IL—Despite continuing economic challenges, the U.S. Postal Service continues to deliver high levels of service – and the Chicago District has become a major contributor to that success. The district continued its outstanding recent record of service performance in fourth quarter of fiscal year (FY) 2009, from July 1 to Sept. 30, 2009.
The district’s score of 96 percent for on-time two-day delivery of Single-Piece First-Class Mail tied four other districts for the best score in the nation. The district’s 96 percent score for on-time overnight delivery of Single-Piece First-Class Mail and 94 percent score for on-time three-day delivery matched the national average in both categories.
“Last year the Chicago District reached progressive and sustained levels of performance,” Delores J. Killette, Postal Service Vice President and Consumer Advocate, said in announcing the scores November 13. “This year they exceeded those levels. Well done Chicago!”
In addition to achieving record high levels of service performance, the Postal Service has been named the Most Trusted Government Agency by the Ponemon Institute for five consecutive years.
“We are committed to providing customers with the trusted, reliable service they’ve come to expect,” said Chicago District Manager/Postmaster Gloria Tyson. “Our quarterly service performance measurement is our ‘report card’ and I am pleased to see that when it comes to serving our customers, we’re meeting and exceeding the national standards.”
Since 1990, the Postal Service has contracted with an independent company to measure First-Class Mail service performance. IBM Global Business Services tracks First-Class Mail from the time it arrives in a collection box or lobby mail chute until it is delivered to a home or business, allowing the Postal Service to monitor performance and improve service for customers.
“Despite noticeable improvements and record service performance results, the Postal Service remains focused on raising the bar,” said Tyson. “We’re the only company where every American is our customer, and service isn’t just in our name, it’s our commitment.”
The Postal Service receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.
source: USPS
APWU Files Dispute Over Consolidation of USPS Districts
The APWU has appealed to arbitration a dispute over the Postal Service’s unilateral consolidation of six USPS Districts. By letter dated May 12, 2009, the union was informed that six district offices had been consolidated and that effective July 4, 2009, the casual reports used by the Union to monitor compliance with Article 7.1.B.5 will reflect the new structure as specified in the letter. On July 1, 2009, the union challenged the authority of the Postal Service to make this unilateral change as contrary to the 2006-2010 National Agreement, which applies the casual limitations to the Districts as defined on the effective date of the agreement. It is the union’s position that this is a mid-term modification of the collective bargaining agreement, prohibited by Article 5, that allows the Postal Service to evade the casual caps and thereby employ more casuals than it otherwise might have under the pre-existing district structure.
source: APWU
USPS Closing Six Districts, Eliminating 1,400 EAS Positions And Offering Early Retirement
Organizational Changes – March 20, 2009
• The Postal Service is closing 6 of the 80 district offices, eliminating 521 positions across the country and offering early retirement to nearly 150,000 employees nationwide (excluding Electronic Technicians, MPE Maintenance Mechanics, Part-time Postmasters)
• For the remaining 74 districts across the country, there will be a 15% reduction in administrative staffing.
• More than 1400 mail processing management positions are also being eliminated in nearly 400 facilities around the country.
District Closings
• Massachusetts District – 116 impacted employees (105 are eligible to retire)
Boston District and the Connecticut District (Hartford CT) will assume the
operations.
• New Hampshire/Vermont District – 75 impacted employees (68 eligible to retire)
Northern New England District (Portland ME) will assume operations.
• Erie District – 63 impacted employees (44 eligible to retire)
Western Pennsylvania District (Pittsburgh PA) will assume operations.
• Central Florida District – 104 impacted employees (79 eligible to retire)
South Florida District (Miami FL) and Suncoast District (Tampa FL) will
assume operations.
• Spokane District – 71 impacted employees (52 eligible to retire)
Seattle District and the Salt Lake City District will assume operations.
• Central New Jersey District – 92 impacted employees (63 eligible to retire)
Northern New Jersey District (Newark NJ) and the South Jersey District
(Bellmawr NJ) will assume operations.
It will take approximately 5 months to close down the functions performed at the impacted districts. We expect this to be finalized by the end of August 2009.
Impacted employees will be given 5 months notice to look for a placement within the Postal Service. If unable to do so, the employee will be given a RIF notice on June 24, 2009. Once the RIF notice is received, the employee then has 60 days before their employment status with the Postal Service will end on August 28, 2009.
Function 1 – EAS positions
In excess of 1400 EAS positions in more than 400 facilities will be eliminated in mail processing operations.
These positions are being eliminated based on a mathematical computation designed to readjust our management-to-craft employee ratio to factor in the thousands of craft employees who have left the Postal Service in the last several years.
An employee who is impacted by this decision will be given 4 month’s notice to look for placement within the Postal Service. If they are unable to do so, the employee will be given a Specific RIF notice on May 27, 2009. Once the RIF notice is received, the employee has 60 days before their employment status with the Postal Service will end on July 31, 2009.
Additional information on the elimination of these positions will be provided.
USPS To Announce District , EAS Staffing Changes On March 20
From the National Association of Postal Supervisors website
NAPS Headquarters was advised today that the announcements that we have been anticipating for some time on District changes will be made formally at 12:00 noon on Friday (tomorrow).
This morning NAPS Headquarters participated in two meetings with the USPS at L’Enfant Plaza. The first meeting dealt with tomorrow’s announcement of changes in EAS staffing in Plant operations. The full details of Function One changes will be provided tomorrow in a USPS Newsbreak.
The second meeting was with the Postmaster General and all of the unions and management associations. The discussion centered on current legislation which would modify the pre-funding of retiree health benefits. All of the unions and management associations are supporting this legislation. 3-19-09
USPS Announces Freeze on All Area and Districts Job Postings
From National League of Postmasters
December 10, 2008 – Freeze Announced
As information, the following message was just sent to the Area V.P.s and to the field from Tony Vegliante:
Staffing changes will be made in the Field beginning early 2009. Due to these changes, effective immediately all Area and District job postings are frozen until further notice including laterals and downgrades. Any exceptions need to come through my office by contacting Bretta Bombac, Mgr. HR Integration and Support.
Please proceed with current postings. The last date for processing PS Form 50s will be 1/16/09.
USPS Los Angeles District Gets Approval From OPM to Offer Early Outs
The Los Angeles District has received approval from OPM to offer Early Out opportunities to “CLERKS ONLY” beginning early 2008. This is a result of planned excessing of over 250 clerks from the Los Angeles District. Below is the text of the letter sent out by Yolanda Elders, President, Los Angeles APWU Local #64 to eligible members advising them of this opportunity.
Update: Mike Causey from Federal News Radio posted this message on his site:
Postal Buyout Rumor
Postal clerks in the Los Angeles area are being given the option to retire early. But the American Postal Workers Union says no financial incentives, such as a buyout or an enhanced retirement formula, go with the deal. This may be the source, at least this year, of the SuperBuyout Rumor in yesterday’s column.
More Postal Districts Implement Phase Two of NRP
Filed under: APWU, districts, Injured On Duty, outsourcing, usps
From PostalReporter.com reader:
The Postal Service continues to implement Phase 2 of the National Reassessment Process (NRP) in USPS Districts across the country. There is no set schedule that establishes a date when a particular District will begin Phase 2.
Every USPS District should have already implemented Phase 1 of the NRP, which is the “information-gathering” phase. When a District completes this initial phase, they contact Postal Service Headquarters to seek approval to move forward into Phase 2, which is the “interview and decision-making phase.”
If USPS Headquarters agrees that a District has successfully completed all of the requirements of Phase 1, they will validate the completion of Phase 1 and authorize that District to begin the implementation of Phase 2. The Postal Service will then notify the APWU national office that Phase 2 implementation has been approved for that District.
The Postal Service has informed the APWU that they do not expect more than three Districts in a USPS Area to be in Phase 2 of the NRP at the same time.
USPS Districts that have been approved for the implementation of Phase 2:
USPS District Date of Implementation
Dakotas Mar. 08, 2007
New Hampshire/Vermont Mar. 13, 2007
Westchester Late April, 2007
Salt Lake City Late April, 2007
San Diego Mid-May, 2007
(offices not in NRP pilot)
South Georgia Mid-May, 2007
Mid-America May 24, 2007
Boston Jun. 28, 2007
Caribbean Jul. 09, 2007
Honolulu Jul. 09, 2007
Cincinnati Aug. 01, 2007
Related link: More “Injured on Duty” articles