Tag: North America

Postal workers union members approve four-year contract

Members of the American Postal Workers Union (APWU), the largest of the U.S. Postal Service unions, have voted to ratify a new four-year contract. The new contract will run through Nov. 20, 2010, and affect approximately 272,000 career employees in the Clerk, Maintenance and Motor Vehicle crafts.

The agreement provides for retroactive and future general wage increases and upgrades as follows:
• Effective Nov. 25, 2006 – 1.3 percent salary increase of salary in effect on Sept. 2, 2006.
• Effective Feb. 16, 2008 – all eligible employees will receive a one-level upgrade.
• Effective Nov. 21, 2009 – 1.2 percent salary increase of salary in effect on Sept. 2, 2006.
The contract also contains continuation of cost-of-living adjustments (COLA) at current levels and a reduction in Postal Service health benefit contributions by one percentage point each of the four years.

The agreement also includes a Memorandum of Understanding, which, among other changes, will result in part-time flexible career employees being converted to full-time and management having more flexibility with regard to the use of noncareer, casual employees.

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Oce Business Services expands mail certification program

Oce Business Services, Inc. announced today that it has increased its participation in the United States Postal Service’s (USPS) Mailpiece Quality Control (MQC) training and certification program to enable clients to reduce postal costs and improve delivery. With a goal to have over 90 percent of its field personnel and management staff certified, Oce Business Services already has trained 88 percent of its senior level managers.

Through MQC training, mail services organizations can increase their knowledge of mail piece design to ensure its alignment with the USPS’ goal of 100 percent automation compatibility. Oce’s commitment to this program is exceptionally noteworthy, as on-site personnel, in addition to the company’s operations managers, are MQC trained and certified.

Oce’s training aligns with the USPS course guidelines and consists of intense study of bar coding specifications and requirements, mail classifications and processing categories, addressing, endorsements, reply mail, permit imprints and special handling of sensitive materials.

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USPS Testing New Technology

The U.S. Postal Service will expand testing of Flats Sequencing System (FSS) technology to automate sortation of large envelopes, magazines, catalogs and circulars. The tests follow board approval of FSS last month. Currently, letter carriers manually sort flat mail before departing for their routes. The FSS equipment sorts flat mail at a rate of about 16,500 pieces per hour. Scheduled to operate 17 hours a day, each machine will be capable of sequencing 280,500 pieces a day to more than 125,000 delivery addresses.

A prototype FSS was tested last year at the Indianapolis Mail Processing Annex and a full-size pre-production machine is scheduled for installation soon at the Dulles, VA, mail processing facility, where it will operate six days a week from August 2007 to July 2008. The USPS will study and measure the system’s effect on transportation, logistics and work methods before deployment in 2008. Phase I of the FSS program calls for an initial order of 100 machines to be installed at 33 postal facilities beginning summer 2008.

“Delivery remains our largest cost, accounting for 43% of all expenses,” says Walt O’Tormey, VP engineering at USPS. “Combined with costs to serve almost 2 million new addresses each year, means we must pursue every opportunity to improve our efficiency.”

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DHL to employ latest generation wi-fi systems throughout US network

DHL announced it is adopting the latest “new generation” scanning technology, deploying a single system across the entire DHL US network to provide enhanced shipment visibility for DHL customers. The new scanning devices, used to capture shipment information by couriers and other operations personnel and utilizing a Wi-Fi (wireless local area network connectivity) communications system, will be deployed nationwide by third quarter 2007.

Unlike many systems used throughout the transportation industry, the DHL wireless scanners leverage the latest GPRS (General Packet Radio Service) and WLAN (Wireless Local Area Network) technologies, which will enable DHL to transmit customer shipment information automatically – from pickup to final delivery – without the need to wait and place a device within a transmission cradle. The information will be immediately fed into DHL back-end systems, providing instant visibility to customers looking for shipment status through calls to customer service, the DHL web site, or DHL shipping systems.

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DHL cuts US losses

The usually dark clouds that hovered over express and logistics giant DHL’s US business are now beginning to show the proverbial silver lining. John Mullen, parent Deutsche Post’s top man in the US, told an investors’ conference in New York that DHL can reach profitability in a matter of two to three years – as early as 2008.

Mullen’s prediction is a departure from the past forecast by the group that its loss-making express business in the US would become profitable only after 2009.

Mullen said that the group’s US express business expects to reduce losses in the second half of 2006 by about USUSD150 million to USD200 million over the previous year. In 2005, DHL recorded a loss of USD508 million.

The German group has a “long and tough way” to tread in the fiercely competitive US express business, Mullen acknowledged. On a long-term basis, DHL would like to achieve a margin of three to five percent in the United States – much less than its competitors UPS and FedEx.

DHL suffered from organisation problems as it tried to put together its two US aviation hubs at Wilmington airport in Ohio in 2005 which resulted in the group losing several clients.

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