Network Consolidation Reboot
Network consolidation will return in January 2015, a year after going on hiatus. The U.S. Postal Service announced recently that it would resume consolidations, closing up to 82 mail processing facilities. This second phase of the network consolidations should be done prior to the 2015 fall mailing season.
The Postal Service expects the changes to yield $750 million in annual savings and to affect about 15,000 employees. In 2012 and 2013, the Postal Service consolidated 141 mail processing facilities, resulting in cost savings of about $865 million.
Loyal readers of our blog will recall that the Postal Service put its network consolidation plans on hold in early 2014 while it reconsidered its proposed changes to service standards for First-Class Mail. (See our blog from earlier this year on the delay.) Phase two will affect the service standards for First-Class Mail and Periodicals as well, eliminating the overnight standard for most First-Class Mail. Periodicals service standards would range from 3 days to 9 days, versus the current 2 to 9 days.
Still, the planned consolidations are likely to rankle some. At least one postal union has already come out strongly against the plan, saying it will degrade service and lead to mail delays. It intends to vigorously fight the closures. On the other hand, industry has generally supported Postal Service efforts to reduce costs and improve efficiencies, as long as service isn’t irreparably harmed.
Read more and vote in poll at USPS OIG
Related link: 50 U.S. Senators Call for 1-Year Moratorium on USPS ‘Cuts and Plant Closures’
The Postal Service has already consolidated 141 mail processing facilities since 2012. As the postal network has been weakened, service delivery has suffered. Since the Postal Service slowed down the delivery of First-Class Mail over two years ago by revising its service standards, it has been more difficult for the American public and small businesses to receive mail in a timely manner. Slowing down mail delivery even further will hurt senior citizens on fixed incomes, small businesses and the entire economy
If any money is being saved by this consolidation nonsense it’s being eaten by our standing around waiting for parcels and letters to arrive and be distributed to carriers. The Postal infrastructure has been crippled by consolidation and now it seems more of the same is what the OIG sees as the cure.
This is no threat,it will happen unless Downahole is fired or Congress takes action to stop it,which is very doubtful with Assa in control of legislation.
Donohoe is playing the only cards he has. Congress won’t budge on the prefunding sinkhole or any other legislation. So the PMG threatens the service cuts to get movement. It’s all POLITICS………………..
they could attract more to buyouts if they upped the money.
You asking little O me? oh almighty great ones…. “USPS OIG: Should the Postal Service continue its consolidation plan?”
If I tell you to stick it where the moon don’t shine? Will my post get posted? Just trying to being real.
At least I didn’t use the F word, as in go to China by yourself.
Has anybody heard anything about a VERA and a VISP?
Consolidating mail processing facilities and eliminating overnight mail would have detrimental effects on the postal service! Slashing service to the public is not the answer.. Not to mention the so called savings, “chump change” that the usps claims these consolidations will yield.
Consolidation and consolidation, still losing and losing money. What is the point?