USPS to file plans for service downgrades, network reductions

WASHINGTON, Dec. 5, 2011 /PRNewswire-USNewswire/ — The U.S. Postal Service today announced it will move forward with its proposal to change service standards. This action is being taken in response to on-going financial challenges caused by the dramatic and continual decline in First-Class Mail volume and the resulting revenue loss.

“The U.S. Postal Service must reduce its operating costs by $20 billion by 2015 in order to return to profitability,” said David Williams, vice president, Network Operations. “The proposed changes to service standards will allow for significant consolidation of the postal network in terms of facilities, processing equipment, vehicles and employee workforce and will generate projected net annual savings of approximately $2.1 billion.” This is part of the overall savings expected from the network optimization initiative, which is projected to save up to $3 billion by 2015.

The size of the existing Postal Service network is dictated by the current overnight transit time in existing service standards. The Postal Service is proposing, through the rulemaking process, to move First-Class Mail to a 2-3 day standard for contiguous U.S. destinations; however, there would be an opportunity for mailers who properly prepare and enter mail at the destinating processing facility prior to the day’s critical entry time to have their mail delivered the following delivery day.

On Sept. 15, the Postal Service announced it would begin studying 252 out of 487 mail processing facilities for possible closure. At that time, the Postal Service also announced it would be considering changes to service standards in an Advance Notice of Proposed Rulemaking published in the Federal Register. The Advance Notice filing was a formal effort to gather input from the public early in the process to ensure their views can be factored into the service change proposal.

The Postal Service will send to the Postal Regulatory Commission (PRC) a request for an advisory opinion regarding service standard changes associated with a significant rationalization of its mail processing network. Shortly thereafter, the Postal Service will publish a notice in the Federal Register soliciting public comment on the specific proposed changes.

  • georgeb

    usps closed 7 districts saved 1 billion close 35 more save 5 billion a year leaving usps with as many districts as ups

  • Unforgiven

    No the postal service does not have to reduce service in order to save billions, the postal service needs to get congress to quit stealing billions and return the overfunded billions in fers and csrs retirement accounts. no reason we should be paying for the rest of the federal employees to retire nor paying the feds $59 billion in extortion for the 2006 postal reform that they enacted.

  • jo

    A big reason for our situation is still that there are too many in management with much too much downtime.The carriers are bearing the brunt of the pressure.Too much time on the roed will lead to many legit comp ,disability claims and sick leave use.

  • David Snyder

    I agree with Jo. And I feel the suicide in progress has been coming from the top for about 9 years. The too much downtime managers want a part time minimum wage workforce, and are willing to destroy the business model of the USPS to get it. It’s a corporate civil war with the consumers the losers.

  • tadios

    People tend to forget that the post office is not supposed to show a profit,it’s supposed to provide a “SERVICE” to every address in this country.When they started to run it like a business that’s when everything started to go downhill.Does any branch of the government other than the postal service have to show a profit? Let me know.

  • Scout

    If you want to increase sales they should start at the window.Good God us window clerks take in the revenue to support this entire circus and they just keep beating us up with over load of additional work and cutting our stamp stock.This just does not make any sense at all.What the heck are they thinking.They are cutting cleaning staff left and right.Our buildings are dirty are window hours are shorter and clerk hours have been cut.How do you make money when you don’t make the product readily available.

  • Chuck

    Absolutely correct!!!!! Congress give it back !!!

    They’re doing exactly the same thing to us carriers. “carry more mail in less time so we mgmt look good”

    Why don’t they get rid of the fat start with getting rid of mgmt positions! we Have 2 carrier bosses & a manager get rid of one boss & the manager & you’ll save approx $250,000 just in two people. Don’t do cuts from the bottom up do them from the top down !!!!!!!!!

  • JLR

    I fully agree with Scout above dated December 5, 2011 20:08. Window Clerks and Letter Carriers are the backbone of the USPS. Without them, the Postal Service will not survive.