USPS

USPS to Resume Network Consolidations in Early 2015

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The U.S. Postal Service will resume the network consolidations of its mail processing operations early next year, PMG Pat Donahoe announced today, June 30th, 2014.

Up to 82 mail processing facilities will be consolidated beginning in January 2015 and concluding prior to the fall mailing season. The changes are expected to result in $750 million in annual savings.

PMG Donahoe defended the action, stating the USPS has sustained substantial losses over the last three years, compounded by declines in First-Class mail volume and revenue. “As a result,” Donahoe said, “we find ourselves with excess capacity in the network and few alternatives to reduce costs.”

In 2012 and 2013, USPS consolidated 141 mail processing facilities, resulting in cost savings of approximately $865 million.

The USPS states it remains committed to finding reassignment opportunities in other locations for employees who may be impacted by the upcoming consolidations.

The consolidations will surely be a sore spot for many rank-and-file postal employees, postal labor unions and activists. Soon after the announcement was made, Community and Postal Workers United (CPWU) responded to the news with a note on their Facebook page:

Here we go again!!! Postmaster General Pat Donahoe couldn’t get congress to approve going from 6 days to 5 days so now he is going after the mail processing plants AGAIN!!! This in spite of USPS bringing in $67 billion in revenues last year and over $1 billion in operational profits so far this fiscal year.

The American Postal Workers Union (APWU) strongly denounced the plans. “We need a Postmaster General who will champion the Postal Service. Instead, PMG Donahoe is on a rampage to destroy it,” APWU Mark Dimondstein said. Executive Vice President Debby Szeredy says the APWU will soon release a major battle plan to stop the consolidations. Click here for the full APWU response.

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