PMG announces details of postal reorganization

WASHINGTON — Postmaster General Patrick R. Donahoe today announced a newly redesigned Postal Service, one that is better positioned for growth, reflects further alignment within the organization to achieve core business strategies and, when fully implemented, will help realize approximately $750 million of annual cost savings.

“I am confident that we have developed a strong plan that takes a key step toward a leaner and less bureaucratic structure. One that is fair to our employees and one that will meet the future needs of our customers and the mailing industry,” Donahoe said.

About 7,500 positions will be eliminated across the organization through the redesign that also includes the closing of seven district offices and offers limited financial incentives to those who meet specific qualifications.

The seven district offices that are closing are Columbus, South East Michigan, Northern Illinois, South East New England, South Georgia, Big Sky and Albuquerque. District offices house only administrative functions and do not affect customer service, mail delivery, Post Office operations or ZIP codes. The functions of these seven districts will be assumed by district offices within close proximity.

A Voluntary Early Retirement and financial incentive programs will be offered to eligible employees. Employees must be 50 years old, with at least 20 years of service; or any age with at least 25 years of service to qualify for the incentive. Employees who accept the VER offer or already meet existing retirement qualifications will receive $20,000 paid over two fiscal years to separate from the Postal Service.

“It’s critical that we adjust our workforce to match America’s changing communications trends as mail volumes continue to decline,” Donahoe said. “At every step and with every change, our focus remains on our customers and continuing to provide outstanding customer service.”

Today’s announcement focused on the administrative and executive corps. Additional staff reductions will occur as the Postal Service makes necessary changes to its network and retail operations. The full scope and financial impact of these personnel actions should be realized in one calendar year – March 2012.

While cost savings will be realized, the main objective of the restructuring is to enhance and strengthen customer service and relationships. The realignment flattens the organization, enabling flexibility to more quickly adapt to changing market forces and continuing mail volume decline.

The Postal Service is streamlining operations and improving efficiencies across the organization in order to protect its ability to provide affordable, universal mail service. By modifying networks, consolidating functions and restructuring administrative and processing operations, the Postal Service is adapting to meet the evolving needs, demands and activities of its customers.

“Mail remains valuable. It is at the heart of a $900 billion industry that continues to drive commerce and the American economy,” Donahoe said. “We will continue to work with Congress and our employees to achieve the long-term, structural and legislative changes we know we need to remain a viable organization.”

via USPS News Release: Postmaster General Continues Efficiency Improvements.

  • Christine Carter

    I am very unhappy about all of this. I listen to too many rumors. Mr. McCreadie was correct, “don’t listen to the rumors.”

  • Raul Uncafanti

    Closing Columbus is a mistake. Should have closed Cleveland District or called Norhtern Ohio. I retired from this district. Very poorly run and wasteful practices abound.

  • Raul Uncafanti

    All that matters is completing meaningless checklists. God help you if you fail to submit them. You are placed on a “Red” list and then are subjected to constant micro management. If a mail carrier uses 12 minutes of overtime you must justify while our staff routinely takes extra long lunches and breaks. It is do as I say rather than set the example.

  • Andy Dust

    I would like to know where are these 7500 people gonna end up? Are they going to be let go from the post office or be put into carrier craft like they did to the mail handlers n window clarks last year? If so, how is that gonna affect the PTFs? Can upper management stop telling the world about their “plans” without really thinking about how it would affact the rest of us on a daily basis.

  • M. Jamison

    “District offices house only administrative functions and do not affect customer service, mail delivery, Post Office operations or ZIP codes.”

    An interesting and probably unintentional choice of words here but probably one that shows a good deal of insight. I wonder, if District offices don’t affect any of the listed functions then why have them? Of course there’s more to this than this limited statement intends but I do think it reflects a mentality and culture that is rooted in dissonance and dysfunction.

  • wy

    who do they think is gonna take this early out when it will take 2 years to complete, and is just a slap in the face to the dedicated years and the b.s. the civil service employees have had to endure over their 25 plus years.!! they need to get rid of all the incompetent supv. and let the employees move the mail and we will be fine>>>>>< amazing the verizon employees just got 100,00 buyouts ! get real and give us what were are worth and then they can flood the place w/ te, casuals, and really give people the service they deserve!!! xoxo

  • the man

    Florida has three District why didn’t he close one in Florida

  • B. Isaac

    These 7500 do not even move the mail. Sad day ,what a wasted opportunity to save the Post Office .Alot of carriers
    are gone at $ 20,000.00.

  • brian

    B. Isaac- why would the USPS want to get rid of carriers? Last time I checked overtime was averaging 12% for city carriers. People seem to think that the USPS is desperate to get rid of as many employees as possible- it isn’t! It’s cutting back on administrative positions, so it’s trying to get people in those jobs to retire. It is not cutting back on letter carrier positions- based on the OT numbers, too many carriers are leaving already!

  • aj

    whatever they do, it will never worked.

  • dissapointed

    Just get rid of those MDO’s and supervisors they are not worth a damn thing.

  • Ted

    I like the idea and am seriously suspicious that working people will still be targeted while managerial personnel stay in the same pay status and minimal work status unless you still include computer games. Alot of the “streamlining” comes in areas that have been hit hard already. Also, the idea of using phrases like “At every step and with every change, our focus remains on our customers and continuing to provide outstanding customer service”. Yea, right. This has been overlooked by the upper echelon for decades and will never change until the proper people are inserted to replace those who outright refuse to reach out to the customers. After all, time IS money! Customer Connect is a great idea but falls short due to lack of managerial follow through. It’s time to take a good look at all the office people and start either making them work or making them walk toward the door. And cutting even higher will save BILLIONS. What does the PMG and management say about eliminating “performance” bonuses???

  • M. Jamison

    The Postal Service has no reason to push craft departures at this point. If Congress grants five-day then the current shortages in city carrier craft should be made up. Five-day would primarily impact non-career employees in the rural craft so there’s no need to reduce there either.
    Depending upon how many people accept the VERA and/or incentive the remaining administrative employees will be slotted into all the vacant postmaster and supervisor positions. The interesting consideration will be how the new lead clerk positions combined with the implementation of DUO will impact postmaster and supervisory positions.
    It seems that the Postal Service is preparing to make an argument that DUO will result in the reclassification of some stand alone post offices as stations or branches of larger nearby facilities. That may result in an interesting tug of war between the Postal Service and the PRC.
    If the clerk contract is approved and implemented it will be interesting to see how aggressively the Postal Service will seek to reshape the clerk work force. Today’s announcement hints at additional changes between now and March 2012.

  • Raymond Lopez

    get reed of all the worthless supervisors and let the craft workers do the professional work they continue doing, the USPS will be saving not only money but they wiil be getting reed of all the head aches. The Usps will have done all the necessary changes if all the useless flunkies are gone.

  • Vennie

    FORGET five day delivery. It is not going to happen. At least Ruth Goldway can see cutting services when business is bad is suicide.

  • joanne

    Exactly what is going to happen with these 7,500 EAS people. My guess is that they are going be moved around to SPY on carriers or to see if the carriers can deliver more deliveries in less time. I know in our area we actually have some supervisors that believe that carriers should only be allowed 2 bathroom breaks while out on the street delivering mail for 6 hrs. NOTHING is ever going to change with making the supervisors more accountable for the time that they do NOTHING during their 8 hrs. GIVE ME A BREAK! The craft employees are always the ones who take the hits. The PMG needs to put some of these people into the crafts and make them earn their paychecks half of them are useless anyway. They can’t be bothered to take care of customers needs it’s hard enough to get them to take care of things that the craft need done during the day.

  • John

    These numbers don’t come close to 7500, not even 2000, what about the rest of the cuts???

  • jojo

    It is funny how management is always refered to as those who do not work the mail yet the unions insist on having in their contract that management must not work the mail.
    Did any of you express your hatred of management during your interview? If I was as unhappy as some of you ingrates I would get a different job. All I ever read on here is management bashing but when I read articles where our customers comment as you do here, They are complaining about Rude window clerks and worthless carriers. The only difference here is I know most of my craft workers are dedicated useful employees and only have a few that are slugs.It is a shame the slugs are the ones that give the USPS
    a bad name. I think it is time for some of you stop being the problem and start being the solution.