Olympia, Washington Consolidation Information

On this page:
- Olympia, Tacoma and Everett Mail May Move to Seattle
- Members of Congress Criticize Postal Service
- Time Warner, Big Corporate Mailers Getting Nervous
- The Olympian: A Failure to Report
- Postal Service Consolidation Plans Will Benefit Big Mailers at Expense of Citizens
- Postal Service Seeking to Reduce Service as Part of Consolidation Plan - Postal Rate Commission Pre-Hearing Set for March 24th
- USPS Seeks Advisory Opinion From PRC
- Olympia Song
- Postal Service Suppresses Article Praising Olympia Workers
- Release 11/12/05
- Release 11/09/05
- Release 11/07/05

Also see:  Why the Union Opposes the Olympia Consolidation (Word .doc)  |  Olympia Study Notes (PDF)  |  Olympia Study (PDF)  |  Congressmen Baird and Smith Letter to PMG (PDF)  |  USPS Responds to Baird / Smith Letter to PMG (PDF)

Olympia Local

American Postal Workers Union

Olympia, Tacoma and Everett Mail May Move to Seattle

Yakima and Wenatchee (and probably Pasco) Mail to Spokane

Postal Service Planned Move Without Informing the Public

For Immediate Release 8/8/06                        Contact Clint Burelson, President 360-970-2965

Statement by Clint Burelson, President

There are plenty of problems with the Postal Service decision to move the cancellation, postmark and sorting of the outgoing mail from Olympia to Tacoma.  But now the Postal Service has admitted that they have possible plans to sort the outgoing Olympia and Tacoma mail in Seattle, which will further increase the problems. 

Moreover, the Postal Service had plans at least a year ago to move all the outgoing mail to Seattle, yet the Postal Service did not reveal this information at the time the Olympia consolidation was announced in November of 2005. The information about the eventual sorting in Seattle was only released by the Postal Service after cross-examination in a Postal Rate Commission (PRC) case addressing the Postal Service consolidation efforts across the country (Docket #N2006-1). 

Under cross-examination from a lawyer with the Office of Consumer Advocate, a government agency of the Postal Rate Commission, a Postal Service witness acknowledged possible consolidations planned last year, but not shared with the public.  The Postal Service provided a list of 139 potential consolidations a few days later on July 25 as part of their response to the cross-examination.  The list included Olympia going to Tacoma and Tacoma going to Seattle.   

The list from last year also included a transfer of the Everett mail to Seattle and of the Yakima and Wenatchee mail to Spokane.  The Postal Service has plans to essentially consolidate and sort all of the outgoing mail in Washington in just two sites, Seattle and Spokane.  Outgoing mail is the mail that local residents give to their carrier, put in collection boxes and mail at Post Offices.  Olympia, Tacoma, and Everett handle the mail for many of the outlying communities in their respective areas.  The outgoing mail currently worked in the Olympia Plant is mail from residents in Thurston, Lewis, Mason, Grays Harbor, and Pacific counties. 

The list of 139 potential consolidations released by the Postal Service is not a complete list of the planned changes.  According to the National Association of Postal Supervisors, the Postal Service has “projected the elimination of as many as 250 mail processing centers by the time the network redesign effort is completed.”  The USPS plan is to have just a few hubs across the country to handle the outgoing mail.  It is possible that many facilities including the Olympia Plant could be closed completely.  The Postal Service has also quietly been closing smaller post offices and removing collection boxes from the streets. 

The Postal Service has been very secretive about their plans because of the opposition it fears from citizens who rightfully do not want to see a reduction in mail service to their communities.  The Postal Service put all but 10 consolidations on hold pending the outcome of the Postal Rate Commission case.  By putting consolidations on hold and not identifying their future consolidation plans in detail, the Postal Service benefits by reducing the amount of public exposure and opposition it receives to their plans while the Postal Rate Commission hears the case.  If the Postal Rate Commission allows the Postal Service to delay the mail as part of the consolidation process, the Postal Service will be free to consolidate everywhere, including the places they have previously put on hold or even canceled.

The Postal Service has plans in place to sort the Olympia and Tacoma mail in Seattle and the Yakima and Wenatchee (and probably Pasco) mail in Spokane.  However, the Postal Service did not disclose that information to the public in the beginning and instead just named the first step, which was the move of the Olympia mail to Tacoma and the Yakima mail to Pasco. 

The Postal Service has repeatedly misled the community about their plans, about the reductions in mail service, and about alleged improvements in efficiency or savings associated with the consolidations.  Despite the Postal Service attempts to act like a business, the Postal Service is still a public institution and must be open, accountable, and acting in the public interest.  The union contends that the secrecy together with the misleading and false information coming from the Postal Service is a sure sign that the consolidations will not benefit the public.  

Although a Postal Service expert witness incorrectly testified that the Olympia consolidation had already been implemented, the move of the cancellation, postmark and sorting of the outgoing mail from Olympia to Tacoma is not scheduled to be completed until the end of September.  The transfer of the Olympia mail to Tacoma should be stopped immediately until the Postal Service can be trusted to provide full and accurate information regarding their plans for the Olympia mail.

In addition to the reduction in service associated with the consolidation, the move is so inefficient that the plans call for 15 new employees to be hired in Tacoma.  Although the new hires are part of the consolidation plan, the costs of the new employees were not included in the calculations of the costs and benefits.  The alleged savings claimed by the USPS is therefore inaccurate.

As postal workers, we have plenty of experience in dealing with the Postal Service.  We frequently have to fight Postal Service plans that adversely affect workers and service to the community.  While the Postal Service may be big and powerful, postal workers are often able to make the Postal Service adhere to legal and contractual regulations and be a better public institution by making our case in a persistent fashion and utilizing all the options available to us.  Our national union is the most active organization fighting against the Postal Service’s consolidation plans.

However, the union cannot win this fight alone.  Residents, businesses, consumer organizations and government representatives should do everything within their power to stop the Postal Service’s consolidation plans and the resulting reduction in mail service to the communities they represent.  Expressing opposition to the consolidation plans by contacting the Postal Rate Commission, the Postal Service, federal representatives and President George Bush would be a good start.

For more information contact: Clint Burelson, president of the Olympia Local of the American Postal Workers Union at clintburelson@comcast.net or 360-970-2965.  A copy of the list of mail facilities considered for consolidation referred to above can be found at http://www.prc.gov/docs/51/51193/Ans.Homework.APWU.Tr.3.566.pdf

Action Needed

Individuals, organizations, and small businesses are encouraged to write or contact the Postal Rate Commission and express their opposition to any reduction in mail service.  A sample letter could look like this:

Postal Rate Commission

901 New York Avenue, NW, Suite 200

Washington, DC 20268

Subject: Docket N2006-1 – Mail Consolidations

Dear Commissioners,

I am requesting that the Postal Rate Commission issue an advisory opinion against the Postal Service request to consolidate mail facilities and reduce service to the country.  (Additional comments are optional)

Sincerely,

Jane Citizen

Other options to contact PRC are:

Phone: 202-789-6800

FAX: 202-789-6886

Internet: “Contact Us” form at www.prc.gov

Olympia Local

American Postal Workers Union, AFL-CIO

Time Warner, Big Corporate Mailers Getting Nervous

About Public Resistance to Mail Consolidation Plans

For Immediate Release 4/12/06                      Contact Clint Burelson, President 360-970-2965

Statement by Clint Burelson, President

Union and community resistance to Postal Service consolidation plans are making big corporate mailers such as Time Warner nervous.  Through informational pickets, press releases, and visits to government representatives, postal workers have been educating the public that mail consolidation plans will benefit the big advertising mailers at the expense of citizens.  For Time Warner and other corporate media, the union contention that corporate media are not adequately covering the story because of their corporate interests is especially troublesome.

The Postal Service, urged on by big advertising mailers like Time Warner, plans to close or consolidate mail processing facilities or mail processing functions, usually the outgoing mail, into large regional hubs spread sparsely throughout the country.  In some cases, the mail will travel over 100 miles before coming back to the original town for delivery.  The Postal Service acknowledges that First Class mail will be delayed as a result of the consolidations, but argues that alleged savings justify the reduction in service.  The union has used the USPS’s own documents to show that there will be little if any savings.

The plans to consolidate mail processing facilities originated and/or are supported by the large mailers because it will reduce the number of sites where they need to drop off their mail and is expected to provide additional discounts associated with contracting out postal work as an ever-increasing volume of mail processing is contracted out.  This privatization of the Postal Service means that much of the work formerly performed by postal workers making a living wage is now performed by private sector workers making little more than minimum wage.  The big mailers have pocketed the difference in wages and are looking for more.

In addition, as part of their business, the large advertising mailers generally do not send their mail from mail boxes and are comfortable with reducing service to those that do in order to get benefits for themselves. 

Consolidation is therefore a big and significant step in the direction of what Time Warner calls “deaveraging” the costs.  Time Warner and other corporations want to bring “market principles” into the Postal Service.  Currently, “family or community principles,” although diminished, still prevail somewhat.  For example, the cost of sending a letter across town helps cover the cost of sending a letter across the country.  The costs are averaged out so that the system is affordable for everyone, everywhere. 

Corporate mailers want to see the USPS increase service and decrease rates to the high volume corporate mailers and decrease service and increase rates for the individual and small mailers.  This will make it harder for individuals and non-profit organizations to conduct their business and express their views at affordable rates. 

Reducing service to the public, as in consolidation, is another way of putting “market principles” into what should be a public service.  This strategy of reducing service to the general public is familiar for members of the community who have witnessed the seemingly deliberate short staffing of counter help at the Post Office and the signs directing customers to contract stations.

Large corporate advertising mailers have been pushing for the mail consolidation plans for several years.  The plans progressed slowly at first, but the Postal Service started implementing their consolidation plans in blitz-like fashion in late 2005.  Nine facilities were targeted on one day and since then over forty more facilities have been targeted for consolidation.

The union contended that the significant cuts in mail service warranted a public discussion on the matter.  The Postal Service wanted to quickly consolidate facilities without any public input or oversight.  Finally, the Postal Service acknowledged that the reductions in service were nationwide and therefore, as required, requested an advisory opinion with the Postal Rate Commission (PRC).  The PRC will determine if the USPS plans violate the Postal Reorganization Act, which requires prompt service to all communities.

Although the case is now before the PRC and although postal workers have mobilized the communities in many of the towns where consolidation is taking place, a public discussion on the significant changes to the Postal Service has not taken place.  At this time, the story of how large corporations are benefiting and the average citizen losing in the Postal Service consolidation plans is not being adequately covered by the corporate media.  This is because many of the large mailers, like Time Warner, who will benefit from the consolidation plans are also the large media corporations that provide most of the news to the country. 

Other large mailers are also keeping quiet on the issue in order that the consolidation plans are accomplished without any attention.  In an article on 3/24/6, titled, “Some Mailers Complaining (Quietly) of Slow USPS Service,” on www.multimerchant.com, it was reported that consolidation is resulting in the delay of mail even for some large mailers.  The article states that mailers are quietly and anonymously complaining about the delay and explains why,

 

 “Why are mailers insisting on anonymity? One source says that mailers don’t want to draw too much attention to the problem because they want to see the Postal Service’s network consolidation succeed.”

The Postal Service recently reiterated their request for cooperation from the large mailers and reminded the mailers of the benefits to them.  Postmaster General John Potter, giving the keynote address to the big mailers on 4/3/2006 at the National Postal Forum, stated,

“Second, we need the industry's cooperation as we streamline our networks -- whether it's our transportation networks or our processing networks…From your standpoint, it will mean fewer places to drop your mailings and enable you to maximize worksharing discounts. This is not something that will happen overnight. Rather, it will be an evolutionary process that will enable all of us to transition smoothly.”

On the same day, the Postal Service sent a letter stating that they were putting on hold studies planned for five different mail processing facilities.  Although the USPS did not provide a specific reason for the change, many think that the USPS and the big mailers don’t want to see any more pickets and community opposition to their consolidation plans while it is being decided by the PRC. 

The nervousness of the large mailers to public resistance of their plans was revealed dramatically on 4/7/6 when Time Warner took the unusual step of publicly responding to a small local union press release titled “Postal Service Consolidation Plans Will Benefit Big Mailers at the Expense of Citizens.”  Jim O’Brien, a vice president at Time Warner wrote the article, which had the somewhat reactionary title of “You Are Wrong!”  O’Brien, although not disclosed in the article, is a Time Warner representative in the PRC case regarding the reduction in service.  If one takes the time to dissect his response, Time Warner does not come across very well. 

Union members and community activists are pointing to the Postal Rate Commission case, Docket N2006-1, as one place where public attention should be directed.  Time Warner and other big mailers are participating in the case and advocating their corporate interests.  However, anyone can submit comments to the PRC on the issue of reducing service to the public.  Government representatives are especially being encouraged to defend the public interest and write to the PRC.

Union members plan to continue to educate the public as to how big mailers will benefit with consolidation at the expense of everyone else and will press the point that big mailers like Time Warner are not adequately covering this story because of their corporate interests. 

Time Warner, the Newspaper Association of America (another participant in the PRC case) and other big mailers that are also part of the corporate media have to be nervous that their image and hence their influence could be quickly destroyed if the average citizen realizes that information from corporate-owned media is not neutral, objective, fair or balanced. 

Once people realize that corporate-owned media reflects the bias and views of its owners and the owners of the corporations that advertise with them, corporate control of public discussion will be significantly eroded.  With a more democratic media we will have a more democratic government. 

People would then react to corporate media such as Time Warner in a manner similar to when they hear something from their boss.  They will listen, but understand that it is the boss’s view and that his interests may be significantly different from their own. 

For more information contact: Clint Burelson - clintburelson@comcast.net or 360-970-2965

###

 Additional Information

The Postal Rate Commission is handling the case (Docket N2006-1) to determine if the USPS consolidation plans to reduce service violate the law, which requires prompt service to the public.  The PRC web site has all the documents submitted and is updated daily.  Individuals and organization can request the PRC decide against the Postal Service and any reduction in service by contacting the PRC at:

Postal Rate Commission

901 New York Avenue, NW, Suite 200

Washington, DC 20268

Phone 202-789-6800

Fax 202-789-6886,

“Contact Us” form at www.prc.gov

Olympia Local

American Postal Workers Union

Letter to the Editor

The Olympian: A Failure to Report

For Immediate Release 4/5/06                                      Clint Burelson, President (360) 970-2965   

Statement by Clint Burelson, President 

The Olympian’s editorial, “Let the Postmark Go,” and its articles concerning mail consolidation failed to report important information relevant to the issue of mail consolidation in general and the Olympia consolidation in particular. 

First, The Olympian failed to disclose their owners’ corporate involvement regarding mail consolidation.  The recent owners of The Olympian, Gannett, followed briefly by Knight Ridder and currently The McClatchy Company, are all members of the Newspaper Association of America (NAA), which represents nearly 90% of the daily newspaper circulation in the US.  The NAA submitted comments to a Postal Reform committee of Congress on 2/11/04, which stated, “NAA supports providing the United States Postal Service (USPS) with the operational flexibility to close, consolidate or relocate postal distribution and processing facilities.” 

Not all corporate mailers are completely happy with the plans.  Netflix, bankers, and other businesses that rely upon First-Class mail will be adversely affected with the delay in the mail. 

Apparently, the NAA and the large advertising mailers believe the benefits of consolidation for them outweigh any costs to others.  Corporate mailer consolidation plans have already been made clear to congress.  Gary Pruitt, the CEO of McClatchy, while testifying for the NAA, on 4/4/03, stated, “It would be extremely disappointing and counterproductive if the Postal Service were unable to implement changes in its distribution network because of congressional intervention.”  Other corporate mailers have warned members of Congress with similar messages.  What member of Congress wants to disappoint the large corporate-owned newspaper chains and other powerful media that have significant influence in elections? 

Second, contrary to The Olympian’s claim that nothing that can be done to stop consolidation, the issue is far from over.  The laws regulating the USPS mandate prompt service to all communities.  The Olympian failed to report that the consolidation issue is now before the Postal Rate Commission (PRC), which will hold hearings on whether the nationwide service reductions associated with the consolidations - planned throughout the country - violate that law.  The public can submit comments protesting the reduction in mail service and therefore influence the decision of the PRC.  In fact, the NAA is a formal participant in the case, which again The Olympian failed to disclose. 

Third, The Olympian acknowledges that a one-day delay in the mail will cause significant problems for the community, but suggests hope that mail will not be delayed.  However, The Olympian failed to report evidence that showed mail would be delayed, including a USPS newsbreak, which stated that after the transfer of mail from Olympia to Tacoma takes place, “current cost pressures make the protection of all overnight and/or two day service commitments for the consolidated office (Olympia) impractical.”  This will also reduce service to all the 985 areas that Olympia now serves.

Furthermore, the USPS case is before the PRC precisely because the USPS acknowledges a nationwide delay in the mail for many parts of the country because of the consolidations.  The case would not be before the PRC if nationwide service reductions were not involved. 

Fourth, The Olympian failed to report evidence that the USPS claims of savings associated with the consolidation were misleading at best and fraudulent at worst.  For example, USPS documents reveal that USPS claims of savings were based mainly on cutting employees off the rolls in Olympia.  However, the USPS will still be paying their salaries elsewhere.  Moreover, the USPS did not count the costs for 15 new employees scheduled to be hired in Tacoma or the 2 new employees inexplicably scheduled to be hired in Olympia. 

The evidence from the USPS shows the transfer of the mail to Tacoma will cause mail to be delayed and will not save an alleged 1.2 million dollars.  Indeed, counting all costs, it will be most likely more expensive to process the mail in Tacoma.  The Olympian had the USPS documents necessary to report important facts regarding mail service to the public, but failed to do so. 

Fifth, in the union’s last press release, we pointed out that Postal Service plans are benefiting big advertising mailers at the expense of everyone else.  The Olympian could have reported this part of the issue as well.  After all, Gary Pruitt, the CEO of McClatchy, providing further testimony on 4/4/03, stated, “The Postal Service has used revenues obtained through the excessive First-Class rates and captive monopoly customers to finance disproportionately low bulk advertising mail rates…”

The large corporate advertising mailers have successfully lobbied in the past so that the public pays disproportionately more for First-Class mail, while corporations pay disproportionately less for their advertising.  Now, the corporate mailers are pushing the Postal Service to consolidate mail facilities, which will reduce service to the First-Class users as well as having them pay an even greater share of the cost. 

Ultimately, corporate mailers want to see the USPS increase service and decrease rates to the corporate mailers and decrease service and increase rates for the individual and small mailers.  This will make it harder for individuals and non-profit organizations to express their views at affordable rates.  Not everyone can afford to own a daily newspaper or a television station.  Affordable rates for small mailers have historically supported a wide expression of views, some of which are decidedly anti-corporate. 

Finally, it would have been useful if The Olympian also disclosed that the NAA supports “worksharing,” in the Post Office.  “Worksharing” is a deceptive, Orwellian, corporate word for contracting out postal work to the private sector.  The discounts to the corporate mailers for presorting, barcoding and transporting the mail have turned union jobs with living wages, job security, medical care, and retirement benefits into non-union jobs, with low wages, no job security, and little or no medical care and retirement.  The owners of the corporate mailing companies have pocketed the difference in the wages and benefits as part of the “income transfer.”  Governments have to then cover medical care, school lunches and other costs for the underpaid private sectors workers.  The large mailers are seeking more postal work and income through mail consolidations.

Most consolidations across the country are now on hold pending the outcome of the Postal Rate Commission decision.  The decision in the PRC case may determine mail service to many communities throughout the country.  A public conversation should take place on the issue.  Corporate newspaper chains like McClatchy and other large corporate media like Time Warner (another participant in the case), apparently believe that the conversation should take place behind closed doors, among themselves and a few government officials, without general public input.  

The public has a right to relevant information concerning mail consolidation so they can participate as informed citizens.  This will be difficult as long as we have corporate-owned media, with vested interests like The Olympian, and Time Warner, determining what stories get told and how.

I don’t mind a corporate newspaper presenting their views on an issue, but it should not hide its corporate interests, fail to report important information, or pretend it is a community paper representing the public interest.

Sincerely,

Clint Burelson, President

Olympia Local

American Postal Workers Union, AFL-CIO

Olympia Local

American Postal Workers Union

PO Box 1953, Olympia WA 98507

Postal Service Seeking to Reduce Service as Part of Consolidation Plan
Postal Rate Commission Pre-Hearing Set for March 24th

For Immediate Release 3/13/06                        Contact Clint Burelson, President 360-970-2965

Statement by Clint Burelson, President

The Postal Service is seeking to significantly reduce mail service to the public as part of its plan to close and consolidate mail facilities across the country.  The Postal Service has submitted a request for an advisory opinion to the Postal Rate Commission, which is charged with ensuring that the Postal Service adheres to the Postal Reorganization Act.  The law requires that the USPS provide prompt service to the public.  A pre-hearing on the issue is scheduled for March 24 in Washington, DC.

In order to get around the likelihood that a service reduction would violate the Postal Reorganization Act, the Postal Service is arguing that requirements in the Postal Reorganization Act for prompt service must be balanced with instructions to be economical.  The Postal Service will be trying to sell a planned reduction in service across the country in exchange for alleged cost savings.  However, if the Olympia consolidation plan is any indication, the public will lose service and have higher costs.  In addition, the Olympia case demonstrates that the Postal Service cannot be trusted to be truthful regarding the benefits and costs of the consolidations.

In the Olympia consolidation worksheets, the Postal Service claimed there would be no reduction in service.  However, an official Postal Service newsbreak provided to employees stated,

“current cost pressures make the protection of all overnight and/or two day service commitments for the consolidated office impractical.”

And in the official “Executive Brief” of the Olympia consolidation study, which the union had to file an unfair labor practice charge to obtain, it states,

“Adjustments to current receipt and clearance times of State agency mail would be necessary to provide the Tacoma P&DC the mail flow necessary to give them a chance of operational success.  Express Mail, collection box pick up times, and Associate Office retail hours will need to be pushed back in many 985 units to account for the additional transportation time required to process volumes in Tacoma.” 

In addition to the Olympia, Lacey, Tumwater area, the affected Post Offices would include Aberdeen (98520), Shelton (98584), Chehalis (98532), etc., and approximately 60 other Post Offices in Thurston, Lewis, Grays Harbor, Mason, and Pacific Counties. 

Because of earlier cut off times for the additional transportation, state agencies, businesses and organizations that do large discounted mailings will be faced with the unpleasant choice of paying extra postage or delaying the mail if they don’t meet the earlier cut off time.  As reported in a 11/4/05 article in The Olympian, Consolidated Mail, a Washington State agency, has predicted a cost of approximately $2 million if the proposal to transfer the mail goes through.  This cost will ultimately be paid by everyone in the state and was not included in USPS calculations.

For the average citizen, a delay in mail service could mean a delay in receiving medicine, income checks, and other important business and legal correspondence.   A delay in mail service could also result in financial penalties to citizens for late property tax payments, IRS payments, credit card bills, and other payments.  In addition, Washington State residents vote by mail and all ballots must be postmarked by Election Day.  If the postmark is not applied in a timely manner, then ballots would be invalidated and a person’s vote would not be counted.

Other Post Offices in Washington State and the country will be affected if the Postal Service’s consolidation plan is allowed to continue.  The Postal Service request indicates that the reduction in service will be “implemented incrementally” as they consolidate mail facilities across the country.  According to the National Association of Postal Supervisors, the Postal Service has “projected the elimination of as many as 250 mail processing centers by the time the network redesign effort is completed.”  The Postal Service plans to eliminate facilities and transfer or “consolidate” the mail to fewer and larger facilities, which will result in further distances of travel and therefore a reduction in service.  The Postal Service also plans on closing smaller Post Offices.  Over 200 small Post Offices have been closed in the last 4 years.

As the Olympia case indicates, the USPS cannot be trusted when it says service will not be impacted.  Similarly, the Olympia case also indicates that the USPS cannot be trusted when it says the consolidations will save money.

The Postal Service claims savings of approximately 1.2 million if the 985 zip code mail currently worked at the Olympia facility is transferred (consolidated) to the Tacoma facility.  The Postal Service has associated much of the savings with the elimination of craft and management positions in Olympia.  However, none of the employees in Olympia are losing their jobs.  The workers will still be paid by the Postal Service elsewhere.  The Postal Service is deceptively claiming the salaries of employees removed from Olympia, but still paid elsewhere, as savings.

Moreover, according to the study, the transfer of the mail will require the hiring of 15 additional employees in Tacoma and 2 in Olympia, which the USPS is not counting as a cost.  The 17 new employees alone will cost the USPS over the 1.2 million it claims it will save.  This consolidation of the Olympia mail to Tacoma will actually cost the USPS money as well as reducing service.  Previous union press releases have documented this and other problems with the study.

The Postal Service has been attempting to reduce service to the public through consolidations and closings in a quick and back door manner.   Not surprisingly, the Postal Service has requested that the Postal Rate Commission modify their normal time frames in order to speed up (rush) the advisory opinion.  

Although the commercial media have not informed the public of the Postal Service plan to reduce service across the country, postal unions, large mailers, and mailer organizations, and several other interested parties have recognized the significance of the USPS request to reduce service and have filed notices of intervention in the case.  The pre-hearing is scheduled for March 24^th.

Despite the upcoming Postal Rate Commission hearing and the Postal Service’s stated desire to “request an advisory opinion before implementing the service changes,” the Postal Service still plans on beginning the transfer of the Olympia outgoing mail to Tacoma on April 3^rd, 2006 and to have at least ten consolidations across the country completed by June of 2006. 

The union contends that the Postal Service’s request for a rushed hearing should be denied.  The Postal Service could have and should have requested an opinion from the Postal Rate Commission before the USPS started implementing its plans in October of 2005.  The public deserves a full and fair hearing on the Postal Service’s plans to reduce service to the public.  A rushed hearing will not provide a full and fair hearing. 

The union also contends that any consolidations should be put on hold until the Postal Rate Commission has ruled on the matter.  As mentioned earlier, “the Postal Service has determined in its discretion to request an advisory opinion before implementing the service changes.”  The Postal Service should be required to wait until that advisory opinion is provided before implementing service changes in the 985/Olympia area or anywhere else in the country.

More importantly, the union contends that the Postal Rate Commission should rule that the USPS plans for consolidation and the resulting reduction in service should be considered a violation of the Postal Reorganization Act.  Any current and/or proposed consolidations that will reduce service to the public should be stopped immediately.  The citizens of this country deserve better service, not less.  The USPS is fully capable of providing that better service.

The Olympia Local of the American Postal Workers Union plans to hold an informational picket to protest the Postal Service’s consolidation plans and the resulting reduction in service on Tuesday, March 21^st, from 11:00 am to 1:00 pm at the Olympia Main Office on 900 Jefferson Street, Olympia, Washington.  Concerned citizens are encouraged to join us there.

Concerned citizens and organizations should contact their government representatives, the Postal Service and/or the Postal Rate Commission with their questions, concerns, and requests.  Individuals can submit their views on the matter in letters to the Commission or through the use of the “Contact Us” form on the Commission web site.  The docket number is N2006-1 and all the documents can be viewed and/or downloaded at the Postal Rate Commission web site at www.prc.gov

For more information contact: Clint Burelson - clintburelson@comcast.net or 360-970-2965

###

USPS Seeks Advisory Opinion From PRC

The Postal Service has submitted a request to the Postal Rate Commission for an advisory opinion on the Postal Service's plans to reduce mail service to the public.  The Postal Service plans include eliminating mail processing operations in local communities and consolidating the mail-processing operations into regional plants.  Although the Postal Service previously argued that service would not go down as a result of the mail consolidations, the request for an advisory opinion acknowledges that mail delivery to at least some communities will be delayed.  The fact that the Postal Service is requesting an opinion from the Postal Rate Commission reveals that a reduction in mail service to the public is likely nationwide. 

In their request before the Postal Rate Commission filed on February 14th, the Postal Service argued that requirements in the Postal Reorganization Act for prompt service must be balanced with instructions to be economical.  The Postal Service will be trying to sell a planned reduction in service in many areas in exchange for alleged cost savings.  The USPS has submitted the testimony of Pranab Shah and David Williams to support their request before the Commission.

The Postal Service has also requested that the Postal Rate Commission modify their normal procedures in order to speed up the time frames in the process of securing an advisory opinion. 

Notices of intervention regarding the request for an advisory opinion and responses to the USPS requested for the expedited procedures are due on March 17th, 2006.  The Postal Rate Commission will hold a prehearing conference regarding this docket on March 24, 2006.

The American Postal Workers Union, the National Association of Postmasters, and David Popkin have already filed notices of intervention in the case.  The APWU and Popkin have also submitted interrogatories (questions) to the Postal Service on the matter.  The docket number is N2006-1 and all the documents can be viewed and/or downloaded at the Postal Rate Commission web site (www.prc.gov). 

The Postal Service's request for an advisory opinion on reducing standards will be a good opportunity for a nationwide conversation on the service reductions occurring as a result of the consolidations.  If the Postal Service's Olympia consolidation plans are any indication, service will be reduced and costs will go up.  I encourage everyone to analyze the relevant documents and share their insights in order that we may more effectively stop the consolidations and reduction in service.  If we do our research, educate and organize, we can win.

In Solidarity,

Clint Burelson, President

Olympia Local

American Postal Workers Union

Here are a few links to some of the relevant documents.  If these don't work, go to the Postal Rate Commission and look for docket N2006-1.

Postal Rate Commission Notice and Order Regarding USPS Requests

http://www.prc.gov/docs/47/47877/Order1453.pdf

USPS Request for Advisory Opinion from Postal Rate Commission

http://www.prc.gov/docs/47/47825/FINAL.Request.pdf

USPS Request for Shortened Time Frames in Procedures for Advisory Opinion

http://www.prc.gov/docs/47/47826/FINAL.Motion.Schedule.pdf

Testimony of Prenab Shah on Behalf of USPS

http://www.prc.gov/docs/47/47835/FINAL.Shah.pdf

Testimony of David Williams on Behalf of USPS
http://www.prc.gov/docs/47/47836/FINAL.DWilliams.pdf

For more information contact: Clint Burelson - clintburelson@comcast.net or 360-970-2965

Postal Service Study on Moving the Olympia Mail is Dubious at Best, Fraudulent at Worst

For Immediate Release 11/12/05                   

Statement by Clint Burelson, President, Olympia APWU

The Postal Service study justifying their proposal to transfer outgoing mail operations from Olympia to Tacoma is based on misleading information and leaves out important information which was known to the Postal Service before the results of the study were released to the public.  The study is so significantly flawed that any projected savings or benefits cannot be taken seriously.

The Postal Service study regarding the consolidation of mail between Olympia and Tacoma point the reader to various notes, much like footnotes.  The Postal Service did not release the notes and union requests for those notes have not been responded to.  However, the union has come across documents that appear to be the missing notes referred to in the study.  One document is titled, “Notes for Annual Workhour Savings/Cost Sheet AMP WA 4a.”  It refers to the Olympia Plant. 

These documents suggest that the Postal Service knew important information that they purposefully did not include in the study.  These documents also suggest that the Postal Service used inflated figures to justify cost savings.  Here are a few observations of the documents so far:

Ø     The study released by the Postal Service claims there will be no changes in service to the community as a result of the transfer of mail operations to Tacoma.  Worksheet 7 of the study states no changes to First Class Mail (FCM) overnight and two-day service areas.  Worksheet 7a of the study states there will be no changes in service for Priority Mail Service Commitments for overnight and two-day service areas.  Worksheet 8 lists no changes for any other classes of mail.

However, the notes show that the Postal Service was aware that cut off times for drop boxes and entry times for the state mail will need to be earlier in order to have a better chance of getting mail delivered on time.  (AMP worksheets, 7, 7a, and 8 claim no changes, while “Executive Brief Summary” states earlier cut off times.)

In addition, in a notice posted on employee bulletin boards on 11/1/5, announcing the transfer of the Olympia mail to Tacoma, the Postal Service stated, “current cost pressures make the protection of all overnight and/or two day service commitments for the consolidated office impractical.” The consolidated office is Olympia.  Yet, the official Postal Service study released at the same time claimed no changes in service.

Ø     The notes for the study indicate that projected savings are based on highly inflated assumptions of productivity.  Instead of using current productivity figures for the Tacoma Plant, the Postal Service is using productivity figures that are the Postal Service’s ideal level of productivity.  In some of the larger numbers, they are using figures that are even higher than the ideal goals set by the Postal Service and again are not the current productivity norm for Tacoma.  (See Note 15)

Ø     The notes reveal that Tacoma does not have the capability to process all of the Olympia mail with automated equipment.  (See Note 2)

Ø     The notes state that some of the mail that was formerly sorted by machines in Olympia will need to be sorted manually in Tacoma.  Moving mail from non-automated operations and facilities to automated operations and facilities is a reason given in Postal Service guidelines to justify the consolidation of offices.  Transferring mail currently worked in Olympia on automated equipment to Tacoma to be worked manually is the direct opposite of Postal Service guidelines.  (See Note 2.  “060” is a manual operation, “331” is a automated operation)

Ø     The study claims $319,987.20 in annual savings as a result of the loss of 4 EAS (Exempt) employees.  The salary and benefits for the EAS employees are recorded as a savings to Olympia and as a savings overall since the EAS employees apparently are not going to be transferred to Tacoma.  However, there is no recording of the cost of the EAS employees’ salaries and benefits elsewhere.  Presumably the EAS employees will still be employed by the Postal Service and there will still be the cost of their salary and benefits to account for.  (See AMP worksheet 6)

Ø     In addition, the Postal Service allegedly suggests a ratio of 1 supervisor to every 22 employees when staffing supervisors.  The number of supervisors per employee in the study currently in Olympia works out to 1 supervisor to every 28 employees.  After the transfer of mail to Tacoma, the ratio works out to 1 supervisor for every 40 employees.  (See AMP Worksheet 5 and Worksheet 6.  Ratio based on working supervisors (1 MDO and 4 SDOs) to employees)

Ø     The study claims transportation savings overall for the Postal Service.  However, the notes indicate that additional required transportation was not included in the final study document. (See Note 16)

Ø     The study states that Olympia will lose its Advanced Facer Canceller System (AFCS) machine, which is used to cancel the mail.  The Olympia Plant has one AFCS and the Tacoma Plant has four.  The study states that Tacoma would remain with 4 AFCS machines.  However, just days after the release of the study, Postal Service spokesperson Ernie Swanson is credited in an 11/4/5 article by The Olympian as saying that the Tacoma facility “will gain a fifth machine once the consolidation is complete.”

In addition, the Olympia AFCS machine has very expensive additions, such as an anthrax detector, that were added within the last few months.  However, there are no costs recorded for the removal, transportation, and installation of this machine in Tacoma or any other facility.  There may be other unrecorded costs as well.   (See AMP Worksheet 10, One Time Costs and Worksheet 10a, Equipment Relocation)

These are just a few observations by postal workers in the short period of time we have had to look at the documents.  There are other problems with the study that require clarification from the Postal Service.   The Postal Service should be required to release all the relevant documents, explain their assumptions in the study and explain exactly how the Postal Service will save money and/or increase service by their proposal. 

So far, the Postal Service has only given vague assurances of “increased efficiencies.”  The Olympia Plant has the highest productivity in the entire nation for a plant its size.  The Postal Service will also have to explain how taking mail from the most productive plant in the nation results in “increased efficiencies.”

Under consolidation guidelines, decisions to transfer mail operations from one office to another are appropriate when it can be shown that efficiency and/or service will be improved.  The Postal Service has demonstrated neither improved service nor improved efficiencies. 

The Postal Service study claimed no changes in service.  However, the Postal Service has already admitted that service will be compromised as a result of the transfer to Tacoma.  The Postal Service study claimed savings of over 1 million dollars.  The inflated assumptions in the study show that the Postal Service claims of increased efficiencies are dubious at best and perhaps even fraudulent.  In addition, any savings by the Postal Service should also take into consideration costs to the customers.  Consolidated Mail Services has already claimed a cost to the state, and therefore all taxpayers, of approximately 2 million dollars per year if the mail is moved from Olympia to Tacoma.

The Postal Service’s handling of their proposal to move mail from Olympia to Tacoma has been less than honest.  In addition to the flawed study, the Postal Service failed to inform the community of their intentions prior to the announcement of the move, failed to gather local input and failed to respond to union requests for information.  A General Accounting Office (GAO) report in April of 2005 criticized the Postal Service for similar problems.

The Postal Service has not demonstrated that it is capable of making improvements on its own.  Therefore, the Postal Service should be required to cease all consolidations nationwide until they prove that they have a process in place to insure that Postal Service proposals that affect the community are fair, open, and will improve service to the community.

Transfer of Mail Processing from Olympia to Tacoma will Reduce Service to Entire State

For Immediate Release 11/09/05

Contact Clint Burelson, President 360-970-2965

Statement by Clint Burelson, President

The Postal Service study of the Olympia Processing and Distribution Center justifying the proposal to transfer outgoing mail operations from Olympia to Tacoma claimed that there would be no changes in service as a result of the transfer.  However the Postal Service is already admitting that there will be service changes.  Postal Service spokesperson Ernie Swanson and postal managers have admitted that cut off times for processing outgoing mail will have to be earlier.  This means that residents, businesses, organizations, and state agencies in the entire 985 zip code areas will have to drop their mail off earlier or their mail will be delayed. 

State agencies, businesses and organizations that do large discounted mailings will be faced with the unpleasant choice of paying extra postage or delaying the mail if they don’t meet the earlier cut off time.  Consolidated Mail, a Washington State agency, has predicted a cost of approximately $2 million if the proposal to transfer the mail goes through.  This cost will ultimately be paid by everyone in the state.

Olympia is the Capitol and the home of many state agencies and organizations and if their mailings are affected, then mail going to residents and businesses in the entire state will be affected. 

Many business, legal, and state transactions involving the requirement of a postmark will also be in jeopardy if the Postal Service requires an earlier cut off time to get that day’s postmark.  As it is, most people can mail their letters after work and the Olympia Plant will place that day’s postmark on the mail and send it on its way in a timely manner.  An earlier cut off time will mean a major readjustment for everyone and jeopardize important business, legal and state correspondence.

While there is concern about the postmark, primarily there is concern with the service historically associated with having the postmark in Olympia.  The postmark usually signifies where the mail is processed.  Processing the mail in Olympia provides better service to the entire state because of the mailing cut off times that allow state agencies the time to get the mail to citizens all over the state.  Processing the mail in Tacoma, Seattle or anywhere else will mean earlier cut off times.  Putting an Olympia postmark on mail processed in Tacoma or even the ridiculous idea of a joint postmark is dishonest and will not change the fact that mail cut off times will be earlier and service will be reduced for the entire state.

Postal Service Should Stop Plans to Transfer Mail Cancellation Operations From Olympia to Tacoma

For Immediate Release 11/07/05

Contact Clint Burelson, President 360-970-2965

Statement by Clint Burelson, President

The Olympia Local of the American Postal Workers Union is calling for the Postal Service to stop plans to transfer mail cancellation operations from Olympia to Tacoma.  The main reasons to stop the proposal are: the loss of the Olympia Postmark, the reduction in service to the public, the lack of significant savings (if any), and the negative impact on employees. 

The movement of the mail to Tacoma should also be stopped based on the Postal Service’s handling of the proposal, which is in conflict with existing regulations and policies.  The failure of the Postal Service to be forthcoming in their intentions, the failure to gather local input, the failure to respond to requests for information and the failure to follow other existing rules has undermined the public’s confidence in the Postal Service’s Olympia proposal.

The lack of proper procedure by the Postal Service has contributed to a flawed study.  The study by the Postal Service states that there will be no reduction in service to the community.  However, immediately after announcing the completion of the study and their intentions to move the Olympia mail to Tacoma, Postal Service representatives are admitting that service to the Olympia community will be reduced.   There are also indications that the cost savings claimed by the Postal Service are inaccurate. 

A General Accounting Office (GAO) report in April of this year strongly criticized the Postal Service as whole for its lack of clarity, criteria and accountability in handling consolidations.  These criticisms are valid for the Olympia case as well. 

The Postal Service should be required to cease all proposed consolidations until such time they have demonstrated that they have a process in place to insure that Postal Service proposals that affect the community are fair, open, and beneficial to the community.

Contact: Clint Burelson - clintburelson@comcast.net or 360-970-2965

See also the attached background information for this press release.

###

Background Information in Support of Press Release

·        Past Attempts to Move Olympia Mail to Tacoma

·        Postal Service Did Not Fully Disclose Intentions with Study

·        Postal Service’s Failure to Respond to Union Requests for Information 

·        PO 408, Area Mail Processing (AMP) Guidelines and “Appendix N”

• Local Management Officials Did Not Initiate Proposal, Which is a Violation of Existing Rules and Policy

·        Postal Service Did Not Perform Review Prior to Decision to Conduct Study

• The Postal Service Failed to Take Local Input

• Postal Service Study

·        Reduced Service and Increased Cost to the Olympia Community

·        The Olympia Plant and Distribution Center

·        Advanced Facer Canceller System (AFCS) machine

• The GAO Has Previously Criticized the Postal Service for Lack of Clarity, Criteria and Accountability

• Final Words

• List of Documents

Past Attempts to Move Olympia Mail to Tacoma

The attempt to move outgoing Olympia mail to Tacoma has happened before.  The most serious attempt was in 1987 when mail was processed at the Olympia Main Office in downtown Olympia. 

In 1987, the Postal Service’s proposal admitted that moving the Olympia outgoing mail to Tacoma would reduce service to Olympia.  The Postal Service also later admitted that the move would result in only a minimal amount of savings.  The savings was so small that the figures used in the study itself did not need to be challenged.  

Community opposition to the proposed move was strong based on the loss of the postmark and reduced service to the community.  The Washington State Senate, House of Representatives, and the Olympia City Council all passed resolutions in support of preserving the Olympia Postmark. 

Former Congresswoman Jolene Unsoeld played a major role in the discussions with the Postal Service.  Through the efforts of the community, the Olympia mail remained in Olympia.

Postal Service Did Not Fully Disclose Intentions with Study

We received a letter, dated 9/2/05, from District Manager Dale Zinser that stated,

This letter is an informational notice of the intent of the US Postal Service to conduct an Area Mail Processing (AMP) survey of the total mail processing at the Olympia P&DC.  The reason for this study is to address the continuing decline of mail volume and the need to eliminate excess capacity while improving efficiency.

This letter is solely intended to provide you with information that we plan to conduct the study.  The study results will be analyzed and a decision will then be made.  This letter is not intended as notice of future changes in mail processing, and is not a notice of impact to employees.  I will provide you with the appropriate notice, if any is required, when a decision is made on the study results.

If you have any questions concerning this AMP study please contact the Manager, Human Resources.”

Sincerely,

Dale R. Zinser

District Manager

Presumably, certain other parties received a similar letter.   The letter makes no mention that the proposal is to move Olympia mail to Tacoma.  The letter also refers to total mail processing and not specifically outgoing mail processing, which would have been more of a clue for the Olympia community.

The union requested clarifying information from the Manager of Human resources in letters dated 9/19/05 and again on 10/8/05.  The Postal Service failed to respond, which is further evidence of the Postal Service’s failure to fully disclose its intentions.

A GAO report released in April of this year noted that, 

The Service has stated that it is reluctant to publicly disclose information on its realignment strategy because it believes that it will meet with resistance from employees, communities, and government representatives if it tells them what it is planning on doing too far in advance.

Despite GAO recommendations that the Postal Service become more open in their communication with the community, the Postal Service continues to hide their intentions and therefore lose credibility in the eyes of the community. 

Postal Service’s Failure to Respond to Union Requests for Information

After receiving notice of the planned study and hearing a rumor that study was intended to justify moving the mail to Tacoma, the union sent a letter and requested information pertaining to these factors by certified mail to the Postal Service (Katherine Nash, Manager of Human Resources for the Seattle District) on 9/19/05.  The letter stated in part,

“Previous studies showed that local and state government and community members were firmly against losing the Olympia postmark, losing the service that was expected in a move to Tacoma, and losing local jobs.  Previous studies also revealed little, if any, savings in transferring the mail to Tacoma. 

It is therefore disconcerting for employees and the larger community to receive notice that another study is going to be performed.  It would seem that a preliminary review would show that the situation in Olympia does not qualify for a study. 

Mr. Zinser informed us that if we have any questions regarding the AMP study to contact you, the Manager of Human Resources.  Attached are questions/requests for information pertaining to the AMP study of the Olympia P&DC. 

Thank you in advance for your assistance in this matter.  A prompt reply with the requested information would greatly assist in dispelling rumors and would provide the transparency that is needed for everyone to understand the situation accurately.

Sincerely,

Clint Burelson, President

Olympia Local

American Postal Workers Union

 The union request for information stated the following: 

“Per Article 17 and 31 of the Collective Bargaining Agreement, and the attached letter, the union requests the following information:

 1.  Who made the initial decision to consider an AMP consolidation involving the Olympia P&DC?   Is there documentation of that initial decision to consider?  If so, please provide a copy of the documentation.

 2.  What criteria are used to evaluate whether a facility should receive an AMP study?  Please provide a copy of the criteria and any/all information relied upon to support your response.

 3.  Who analyzed the criteria and determined whether the Olympia P&DC met the criteria to receive an AMP study?  Please provide a copy of the documents showing how the Olympia P&DC met the criteria and any/all information relied upon to support your response.

 4.  Who approved the AMP study of the Olympia P&DC?  Is there documentation of that approval?  If so, please provide a copy of the approval.

 5.  What criteria are used to determine if a facility should be consolidated?  Please provide a copy of the criteria and any/all information relied upon to support your response.

 6.  Has the Postal Service considered the history of opposition by local, state and congressional government representatives, local mailers and the community to the moving of the Olympia postmark, reduction in service and loss of jobs in Olympia?  If so, what is the rationale for proceeding with a study in spite of that consideration?

 7.  Has the Postal Service considered the impact on service?  If so, what is the estimated impact on service?  Please provide a copy of any/all information relied upon to support your response.

 8.  Has the Postal Service identified possible service commitment changes?  If so, what are the possible service commitment changes?  Please provide a copy of any/all information relied upon to support your response.

 9.  Has the Postal Service estimated employee impacts?  If so, what are the estimated employee impacts?  Please provide a copy of any/all information relied upon to support your response.

  10.  Has the Postal Service identified transportation concerns?  If so, what are the transportation concerns?  Please provide a copy of any/all information relied upon to support your response.

 11.  Has the Postal Service identified operating plan changes?  If so, what are the estimated operating plan changes?   Please provide a copy of any/all information relied upon to support your response.

 12.  Has the Postal Service considered the impact on new and existing facilities?  If so, what is the estimated impact on new and existing facilities?   Please provide a copy of any/all information relied upon to support your response.

 13.  Has the Postal Service quantified productivity impacts and other costs?  If so, what are the estimated productivity impacts and other costs?  Please provide a copy of any/all information relied upon to support your response.

 14.  Has the Postal Service sent notice of the AMP study in Olympia to members of the community, media, government officials, etc.”  If so, who are the specific individuals and organizations that received the letter regarding the survey of the Olympia P&DC?  Please provide a copy of any/all information relied upon to support your response.

 15.  Has the Postal Service sent out notices or have plans to send out notices of an AMP study to any other facilities in the Seattle District?  If so, which facilities?  Please provide a copy of any/all information relied upon to support your response.

 16.  Has the Postal Service sent out notices or have plans to send out notices of an AMP study to any other facilities in the Western Area?  If so, which facilities?  Please provide a copy of any/all information relied upon to support your response.

 17.  Has the Postal Service decided who will be conducting the study?  If so, who will be conducting the study?  Please provide a copy of any/all information relied upon to support your response.

 18.  Has the Postal Service decided when the study will be conducted?  If so, when will the study be conducted and how long is it expected to take?  Please provide a copy of any/all information relied upon to support your response.

 19.  Once the study is completed, how long will it be before we know whether there will be any changes to mail operations in Olympia?  Please provide a copy of any/all information relied upon to support your response.

 20.  Once the study is completed, how long will it be before changes to mail operations, if any, will take place?  Please provide a copy of any/all information relied upon to support your response.

 21.  The rumor is that Olympia mail would be sent to Tacoma, but we have nothing in writing on that.  What is the proposal at this time in terms of consolidation?  Please send the information to the Olympia Local APWU via the Olympia Plant.  Please provide a copy of any/all information relied upon to support your response.

 22.  Please send us a copy of all any/all other correspondence and/or documentation regarding the study and/or consolidation of mail in Olympia.

 23.  Please provide a copy of any other information that would be useful for employees and members of the community to understand the AMP study and/or consolidation of mail in the Olympia P&DC.

 Final Note: Please send the information to the Olympia Local APWU via the Olympia Plant.  Please do not wait for all the information before providing us with the information that you do have.   If you need clarification on our requests, please do not hesitate to contact me. 

 Again, thank you in advance for your assistance in this matter.  A prompt reply with the requested information would greatly assist in dispelling rumors and would provide the transparency that is needed for everyone to understand the situation accurately.

 Sincerely.

 Clint Burelson, President

Olympia Local

American Postal Workers Union

The Postal Service did not respond and a second request for the same information was sent on 10/8/05.   The Postal Service has still not had the courtesy to respond to our request, much less provide any information.  The parties have agreed locally that information should be provided within 3 days.  It has been over 48 days and the Postal Service has not provided any information.

An “adverse inference,” a technical phrase used in arbitration, which can be interpreted to mean the refusal to provide the information is evidence that the information would prove the union’s contentions and undermine the Postal Service position can be made in this case.

Congressman Brian Baird and Congressman Adam Smith’s office have been contacted and they are working to assist us in getting a response from the Postal Service.

PO 408, Area Mail Processing (AMP) Guidelines and “Appendix N”

The PO 408, Area Mail Processing (AMP) Guidelines is the relevant Postal Service manual on the issue of consolidation.  The union’s request for information sought to ascertain if certain rules in the PO 408 were followed.  The PO 408 also provides instructions on completing the worksheets for a consolidation study. 

A copy of the PO 408 can be downloaded at the APWU website.  (www.apwu.org) Go to Industrial Relations, then Handbooks and Manuals or a direct hit at

http://www.apwu.org/dept/ind-rel/USPS_hbks/PO-Series/PO-408%20Area%20Mail%20Processing%20Guidelines%204-95%20(6.3%20MB).pdf

Appendix N to the USPS Transformation Plan (2002) outlines the procedures the Postal Service must follow before it consolidates mail processing plants or closes post offices.  It contains much of the same principles as the PO 408, but does not have as much details.

Local Management Officials Did Not Initiate Proposal, Which is a Violation of Existing Rules and Policy

The PO 408, page 4 under the heading, “Who Should Initiate an AMP Study” states,

“The AMP proposal process may be initiated by either the district manager, Customer Sales and Service and/or the plant manager, Processing and Distribution Center.” 

The GAO contacted the Postal Service with their findings of a lack of clear decision making procedures in regards to consolidations.  In response, Patrick R. Donahue, the Chief Operating Officer and Executive Vice President of the Postal Service wrote to the GAO in a letter dated 3/18/05,

“The decision to consider an AMP consolidation begins at the local management level, with input from and concern for the views, needs and wishes of stakeholders on the local business community, mailers, employees and their union representatives, and local elected officials.”

However, in the Olympia case local management did not initiate the consolidation process and in fact expressed opposition to the proposal to upper management. 

After receiving word that a study was to be conducted, local management explained in meetings with employees and with union representatives in labor management meetings that local management did not initiate the proposal and did not support it.  Local management explained that the study was being pushed down from the top.

Local management stated that management officials in Olympia, Tacoma, and the Seattle District expressed their opposition to the proposal.  Local management explained that it would not produce savings and service to the community would be reduced.

The Postal Service’s decision to initiate the proposal at the top level and ignore the input of local management officials violated Postal Service regulations and policy and contributed to a flawed study.  Presumably, the reasons for rules requiring local initiation of consolidation proposals is the fact that local management are much more familiar with local conditions and are more accountable to the communities they live in.  Decisions to consolidate mail functions at the local level are more likely to take all aspects into account to ensure that proposals are efficient.

As described elsewhere, Postal representatives are already backpedaling on claims made in the study in part because of their failure to adhere to rules regarding who initiates consolidation proposals. 

Postal Service Did Not Perform Review Prior to Decision to Conduct Study

Prior to conducting a study, the initiating office must fully consider 10 categories of factors having to do with service impacts, other impacts on the community (such as the loss of the Olympia Postmark), transportations costs, etc.  The PO 408 states the following on page 3,

Before beginning an AMP study, the initiating office must fully consider the

following:

• The service impact that AMP will have on the community, as measured by

service indicators such as (but not limited to) Customer Service Index (CSI),

External First Class (EXFC), and Origin Destination Information System (ODIS).

• Current and proposed service commitments. Will there be any degradation to

service commitments? Upgrades?

• Other impacts on the community.

• Impact on employees.

• Transportation and network concerns.

• Changes to the operating plan at the area mail processing center (AMPC) and at

the affected office.

• Future automation deployment.

• New and existing facilities.

• Changes in the transportation requirements of any existing Highway Contract

Route (HCR). If so, is the implementation planned to coincide with the contract’s

Effective date in order to avoid unnecessary indemnity costs?

• Impacts on costs and productivity.

The review did not occur at the hands of local management and we don’t believe any review occurred at all.  A review might have prevented the embarrassing position the Postal Service finds itself in now.  A review would also have allowed for input from interested parties and would have avoided unnecessary stress to the community.

The Postal Service Failed to Take Local Input

A proper review would have considered local input at the beginning of the process.  Patrick R. Donahue, the Chief Operating Officer and Executive Vice President of the Postal Service wrote to the GAO in a letter dated 3/18/05,

“The decision to consider an AMP consolidation begins at the local management level, with input from and concern for the views, needs and wishes of stakeholders on the local business community, mailers, employees and their union representatives, and local elected officials.”

The community was left in the dark as to the intentions of the Postal Service and as far as we can tell, local stakeholders were not consulted during the review process or as part of the study.  The union certainly was not solicited for input.  Union requests for information in order to better provide input were ignored.

Postal Service Study

The Postal Service released the study allegedly justifying the proposed move on 11/2/5.  However, the notes and attachments referred to in the study have not been released at this time.  The union has submitted a request for the missing information.

At the same time the study was released, the Postal Service was already providing information that was contrary to the claims in the study. 

A copy of the study as provided by the Postal Service is available from the union in pdf format.

Reduced Service and Increased Cost to the Olympia Community

The study released by the Postal Service claims there will be no changes in service to the community as a result of the transfer of mail operations to Tacoma.  Worksheet 7 of the study states no changes to First Class Mail (FCM) overnight and two-day service areas.  Worksheet 7a of the study states no changes in service for Priority Mail Service Commitments for overnight and two-day service areas.  Worksheet 8 lists no changes for any other classes of mail.

However, in the 11/1/05 notice posted on employee bulletin boards announcing the transfer of the Olympia mail to Tacoma, the Postal Service stated the following:

The cost reductions and efficiency improvements expected with this consolidation were deciding factors in making this very difficult decision.  While the Postal Service is extremely proud of the world-class service it provides its customers, current cost pressures make the protection of all overnight and/or two day service commitments for the consolidated office impractical.

The consolidated office is Olympia.

In an 11/4/05 article by The Olympian, the following is attributed to Postal Service spokesperson Ernie Swanson,

Swanson said to prevent a delay in South Sound mail services, mail drop-off time could change.

“We may have to move cutoff times back a bit,” he said.

For example, if a mailbox lists its last drop-off time as 5 p.m. it could be moved back one hour, Swanson said.

The same article said that incoming mail could be delayed for the state and outgoing mail more expensive as a result of the transfer to Tacoma.  The state estimates that it could cost them about $2 million a year if the mail cancellation operation is transferred to Tacoma.

The Postal Service’s failure to properly note service reductions in the study further undermines confidence in other aspects of the study.

 The Olympia Plant and Distribution Center

The Olympia Plant and Distribution Center (P&DC) is a new building that began operations in July of 1997.  There are approximately 150 employees working at the Plant.  The employees at the Olympia Plant have had the highest productivity numbers in the entire nation for the last two years for an office of its size.

The Olympia Plant is located in Thurston County, which has a high rate of growth and is expected to continue to grow in the future.  The Olympia Plant also sorts much of the outgoing and incoming mail for the towns that have 985 as the first three letters of their zip code.  These areas served by the Olympia Plant are also experiencing growth.

Advanced Facer Canceller System (AFCS) machine

The Olympia Plant has an Advanced Facer Canceller System (AFCS) machine, which is used to cancel the mail.  This is the same machine that would process the mail in Tacoma.  The Olympia Plant has one AFCS and the Tacoma Plant has four.

One of the main justifications for consolidation is to move non-automated mail to plants that use automation to work the mail.  This is not applicable here as the machines in Olympia and Tacoma are the same. 

Major costly investments were recently added to the AFCS.  The Olympia Plant installed a Biohazard Detection System in March of 2005 and a Ventilation and Filtration System in August of this year.  An Advanced Coprocessor, which improves the sorting of the mail was installed just last year and upgraded this year as well.  These expensive investments should continue to be utilized in Olympia. 

The study states that the Olympia Plant would lose their AFCS, but there is no indication where it would go.  The study does not count the costs associated with disassembling the AFCS and the expensive additions, the transportation of the equipment, the installation in another facility and other associated costs.

The study states that Tacoma would remain with 4 AFCS machines.  However, just days after the release of the study, Postal Service spokesperson Ernie Swanson is credited in an 11/4/5 article by The Olympian as saying that the Tacoma facility “will gain a fifth machine once the consolidation is complete.”

The GAO Has Previously Criticized the Postal Service for Lack of Clarity, Criteria and Accountability

The General Accounting Office (GAO) review in April of 2005 strongly criticized the Postal Service for its lack of clarity, criteria and accountability in handling consolidations.  Some of these criticisms are valid for the Olympia case as well. 

The fact that the Postal Service has already been criticized for such failures and continues to ignore the criticism or otherwise make improvements demonstrates that the Postal Service is unable to make the necessary commitments to transparency and fairness required.  The Postal Service should be required to cease all consolidations until such time that transparency and fairness can be insured.

The GAO Report 05-261 “U.S. Postal Service: the Service's Strategy for Realigning Its Mail Processing Infrastructure Lacks Clarity, Criteria, and Accountability” can be downloaded at http://www.gao.gov/new.items/d05261.pdf.   

GAO Report - Executive Summary Excerpt

“Specific issues related to the Service’s infrastructure realignment strategy include: (1) the Service’s strategy does not include specific criteria and processes for eliminating excess capacity, including the removal of unnecessary facilities and (2) the Service’s strategy is not sufficiently transparent and accountable, excludes stakeholder input, and lacks performance measures for results of decisions. The Service’s limited communication makes it difficult for customers to work with the Service to achieve a least-cost network for the entire mailing industry, for Service employees to understand how they may be affected, for communities to understand how they will be affected, and for Members of Congress to explain to their constituents what the Service is planning to do.

To enhance the Service’s transparency of its decisions related to realigning its infrastructure, the Postmaster General should establish a set of criteria for evaluating realignment decisions and a mechanism for informing stakeholders as decisions are made. To enhance accountability for these decisions, the Postmaster General should develop a process for implementing these decisions that includes evaluating and measuring the results.

In commenting on a draft of this report the Service concurred with our description of its mail processing and distribution infrastructure and the major business and demographic changes that have affected the Service’s operations, but did not respond directly to our conclusions or recommendations.”

Final Words

The members of the Olympia Local of the American Postal Workers Union look forward to working with interested parties in preserving the Olympia Postmark, maintaining service levels to the community and avoiding any unnecessary disruption to employees.  As postal workers, we believe in the Postal Service.  We also know from experience that postal management sometimes needs to be encouraged to do the right thing.

For more information contact

Clint Burelson, President

Olympia Local

American Postal Workers Union, AFL-CIO

PO Box 1953

Olympia, WA 98507

clintburelson@comcast.net

olyapwu@callatg.com

360-970-2965 cell

360-357-6239 home

The union will provide the following documents, most of which have been mentioned above, upon request:

General Documents

PO-408, Area Mail Processing (AMP) Guidelines, April 1995 is a Postal Service handbook that provides procedures that must be followed regarding consolidations.  Also, contains instructions for worksheets in conducting studies.

Appendix N to the USPS Transformation Plan (2002) outlines the procedures the Postal Service must follow before it consolidates mail processing plants or closes post offices.

GAO Report 05-261 U.S. Postal Service: The Service’s Strategy for Realigning Its Mail Processing Infrastructure Lack Clarity, Criteria, and Accountability is a General Accounting Office (GAO) report criticizing the Postal Service for lack of transparency and consistency in their consolidation procedures.

Documents Pertaining Specifically to Olympia Consolidation

Postal Service letter dated 9/2/05 from Seattle District Manager Dale Zinser to Olympia Local President Clint Burelson informing the union of a study of the total mail processing in Olympia.

Olympia Local APWU letter and request for information dated 9/19/05 from Olympia Local President Clint Burelson to Seattle Human Resources Manager requesting information on the study.

Olympia Local APWU letter and request for information dated 10/8/05 from Olympia Local President Clint Burelson to Seattle Human Resources Manager requesting for the second time information on the study previously requested on 9/19/05. 

Postal Service Study of Olympia and Tacoma Consolidation released on 11/3/5. 

Postal Service letter dated 11/1/05 from Seattle District Manager Dale Zinser informing the union of the Postal Service’s decision to consolidate Olympia outgoing processing operations with Tacoma.

Postal Service letter dated 11/1/05, from Manager Contract Administration John W. Dockins to National APWU President William Burrus stating certain mail processing operations in the Olympia Plant will be consolidated into the Tacoma Plant.

Postal Service bulletin dated 11/1/05 posted on employee time clocks and bulletin boards informing employees that outgoing mail operations will be moved to Tacoma.   

Selected Documents Regarding 1987 Attempt to Move the Mail

Senate Resolution 1987-8646 adopted by the Senate April 21, 1987.  “Now, Therefore, be it resolved, That the Senate of the state of Washington request the administration to support the interests of the present and future citizens of the state of Washington and preserve the use of the Olympia postmark.”

House Floor Resolution 87-4655 adopted by the House of Representatives on April 21, 1987.  “Now, Therefore, be it resolved, That the House of Representatives of the state of Washington request the administration to support the interests of the present and future citizens of the state of Washington and preserve the use of the Olympia postmark.”

Newspaper Articles (available through the “Olympian”)

Olympian article dated 11/2/05 titled, “Olympia Tradition to Expire,” by Rolf Boone and Brad Shannon.

Olympian article dated 11/4/05 titled, “State Offices Face Mail Delays,” by Rolf Boone.