Post Office to Cut 7,500 Jobs

Struggling with record losses, the United States Postal Service will cut 7,500 managers and close seven district offices, officials said [Press Release]. The cuts, which include postmasters, supervisors and other administrators, will come as part of the agency's previously disclosed plan to close as many as 2,000 post offices and consolidate regional mail-processing centers over the next 12 months. District offices will close in Columbus, Ohio; Albuquerque, N.M.; Billings, Mt.; Macon, Ga.; Providence, R.I.; Troy, Mich.; and Carol Stream, Ill., the Postal Service said. The agency hasn't identified post offices that will close but has said that many will be in rural areas where they are losing money and residents may have access to services in another town. The Postal Service is struggling with declining mail volume and retiree health-benefit costs, according to U.S. Postmaster General Patrick Donahoe.

Source: Wall Street Journal

PRC Takes Easy Route on 5-Day

The U.S. Postal Service for months has been making noise about eliminating Saturday mail delivery as a cost-saving measure, but without feedback from the Postal Regulatory Commission and a stamp of approval from Congress, USPS hasn't been able to move forward on the proposal. The PRC issued an advisory opinion [Link] on the five-day delivery question, but there's no clear thumbs up/thumbs down ruling on the proposal. The commission found that Postal Service overestimated potential savings and underestimated potential losses in revenue associated with dropping a delivery day. The actual savings would be approximately $1.7 billion annually, but only after three years, according to the PRC. USPS had estimated nearly $3.1 billion per year in savings. The PRC also found that the proposed change would cause 25 percent of first-class and priority mail to be delayed by two days. Those living in rural, remote and non-contiguous areas would be particularly affected. Postmaster General Patrick Donahoe doesn't appear to be discouraged, however, and noted that the plan remains part of USPS' strategy to save money and boost efficiency [Link]. "The commission's opinion is advisory only and therefore, is not a final determination on the merits of our proposal," Donahoe said.

Source: Government Executive & PRC Press Release

Publishers Rejoice on Full-Service Refund Decision

Periodical mailers that received Traditional ACS notices or hardcopy PS Form 3579 for UAA (Undeliverable As Addressed) publications that were properly prepared with the Intelligent Mail (IM) barcode to generate Full Service ACS may be eligible for a refund or credit for Traditional ACS and/or PS Form 3579 manual address correction fees charged between September 25, 2010 and February 24, 2011. Click here to read the policy.

Source: intelisent

Congressman Backpedals on USPS Downsizing

Rep. Darrell Issa, the Republican Congressional leader who has been boldly advocating a downsizing of the U.S. Postal Service, suddenly doesn't sound so brave. At a recent Congressional hearing, according to postal commentator Eddie Mayhew in his newsletter for publishers, Issa said there were probably post offices in every district that could be closed but that he hopes “there isn’t one or three in mine." Is this really the same man who just four months ago told The Washington Post, "There are too many postal workers, too many distribution centers, too many post offices and a reluctance to make those changes"? Or the same one who told The Heritage Foundation in October that "the Post Office has 200,000 people who should be retiring"?