US Postal Service plans to overhaul delivery network
The U.S. Postal Service plans to close dozens of facilities across the country as part of a major reorganisation, a move that could save millions of dollars and create a more flexible postal network. But the plan is certain to spark a fresh round of bickering with the agency’s strong labor unions.
Last month, the agency released a plan for overhauling its delivery network. The so-called network report calls for closing airport mail facilities, consolidating bulk mail centers and streamlining the computer software that maps postal routes. The closures could lead to the elimination of hundreds of jobs and more outsourcing.
Postal officials say the changes will help revitalize a decades-old network.
The first facilities to close under the network plan are the airport mail centers (AMCs), which transfer mail between distribution centers and commercial airlines working under contract with the Postal Service.
Up until a few years ago, the Postal Service had mail contracts with more than a half-dozen carriers at many airports, and the centers were hubs of activity. But the agency has consolidated its contracts: At many airports, only one or two carriers handle mail. That means less work for the AMCs.
The Postal Service is also trying to ship less volume through the airlines because of rising fuel costs and increasing delays at many airports.
The Postal Service has closed 54 AMCs under a consolidation plan dating back to 2006. Williamson expects “a few” AMCs to keep running, but he couldn’t say how many or which ones. The agency expects to save USD 117 million between now and 2009 through reduced work hours and lease expenses.
And now the agency is starting another round of consolidations at its 400-plus mail processing facilities. The Postal Service will spend two years soliciting expert study and public opinion to decide which facilities to close.
