The U.S. Postal Service will be reducing its number postal plants over the next two years, the agency said Thursday. It plans to move ahead with a "$2.1 billion cost-savings plan", which is scheduled to begin in July.
Some of the cuts will take place in 2012, with around 48 plants destined to be shut down or consolidated in July and August, which will affect about 5,000 USPS employees. By the end of 2014, the plan would have completed a merger or closure of around 229 plants, essentially cutting out about 28,000 jobs.
Changes to USPS customers will involve mail delivery that will take longer to be distributed. Overnight service will also be discontinued, but USPS representatives revealed that any mail that is sent within a city or state, would still just take a day to be delivered until the end of 2013.
Although service momentum will be slower, they agency stated that "80% of first-class mail, which most consumers use, will continue to be delivered on time in 2012."
According to Megan Brennan, chief operating officer for USPS, the changes being made "are a necessary part of the plan to reduce costs and return the Postal Service to financial stability."
USPS also revealed last week that it no longer to close "13,000 facilities", offering instead a reduction in the hours that these offices are open.
The agency disclosed that it incurred a" $ $3.2 billion loss for the three months ended March 31". They attribute the reduction of earnings to the recession, a decrease in the amount of mail that is being sent, and a "congressional mandate" that requires the agency to "prefund retirement health care benefits." The health care
The health care directive is a huge issue for USPS, which admitted that they don't have a sufficient amount of funds to make a $5.5 billion payment, which is expected in August. USPS unions stated that rather than closing locations and increasing service interruptions, that may cause customers to use other mail delivery options, the health care legislation should be canceled.
Cliff Guffey, president of the American Postal Workers Union, admitted that "The Postal Service's actions are the best evidence there is that union members must contact their U.S. representatives and urge them to address postal reform immediately, using the recently approved Senate bill as a starting point for discussion."
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