USPS Plans for Stamp Vending Machines as Automated Postal Centers Are Deployed

This is to provide updated information regarding prior correspondence concerning U.S. Postal Service (USPS) stamp vending machines. The following is the chronology of our correspondence and meetings to date concerning this subject:

· · November 18, 2003 — Letter from USPS to the American Postal Workers Union (APWU) advising that the Postal Service was scheduled to publish a Request for Interest (RFI) concerning subcontracting the servicing, cleaning, and maintenance of Postal Service stamp vending machines.

· December 2, 2003 — Letter from USPS to the APWU advising that the Postal Service was to begin conducting Function 4 reviews on the vending operation (LDC 46) and would be observing the work practices of the Self-Service Postal Center (SSPC) Technicians beginning at the end of January 2004 and completed by the end of February 2004.

· December 16, 2003 — USPS update letter to the APWU concerning LDC 46 reviews.

· December 1 and 17, 2003 — Letters from the APWU to the USPS requesting meetings to discuss the RFI and LDC 46 reviews.

· January 16, 2004 — Meeting between USPS and APWU at which a briefing was provided concerning the USPS stamp vending program, RFI, LDC 46 reviews, restructuring of vending, broadening of current deployment strategy in which machines are serviced by Operator Maintainers’ (level 5) when performed by bargaining unit employees, and relocation/removal of obsolete/underperforming vending machines.

· February 19, 2004 — Letter from USPS to APWU transmitting Function 4, LDC 46 Standardized on Site Review Process Guide.

As we begin deployment of the first wave of the Automated Postal Centers (APC), there are many sites where these machines will not be available. At these non-APC locations, traditional vending equipment will remain the primary means for self-service customers to purchase postage when a machine is necessary. In order to assure that we continue to meet our Transformation Plan it is important that we maintain a reliable and cost effective vending presence. The strategy summarized below will optimize our current vending network while moving access toward newer, more efficient, self-service systems.

The self-service strategy involves four primary actions:

1. Removal of one vending machine at each site where an APC is deployed.

2. Elimination of costly obsolete vending equipment.

· Removal of all Model 1625 machines (enclosure one).

· Removal of all the following obsolete machine models (enclosure two);

PS-53, PS-53B, P8-86, PBM-1, PBM-1A, PBM-2, PBM-4, PBM-5,

PCM-21, 21CE-64, and 21CE-71.

3. Removal and redeployment of current, under-performing vending equipment. (Information will be provided when available.)

4. Development of new self-service equipment that is customer friendly and less costly to support.

These actions will have an impact on the staffing (SSPC Technicians, Level PS-6, and operator maintainers, generally Level PS-5 when performed by bargaining unit employees) needed to support vending in some districts. Maintenance craft activities may also be impacted. Specific employee and complement impacts will be determined at the local level based upon District demographics, vending operations review results, etc. Impacts on bargaining unit employees will be conducted in accordance with appropriate provisions of the National Agreement.

Through implementation of these activities the Postal Service will be able to provide customers with convenient access to postal products and services while reducing the cost of product delivery. Updated information will be provided when available.

If you have any questions concerning this matter, please contact Jack Green of my staff at (202) 268-8300.

Sincerely,

Area	Number of 1625As
New York	53
Cap Metro	26
Great Lakes	73
Southeast	66
Southwest	60
Pacific	46
Western	75
Eastern	116
Northeast	36
Total	551