Distribution Directions Vol 9 No 15 7,500 Cut Positions, Fuel Costs, FSS Mailpieces and Headaches

The USPS will announce later this month a downsizing of approximately 7,500 supervisory, managerial and postmaster positions. Most of those positions are filled, but many are not, especially in the postmaster positions, because of past attrition, said Postmaster General Patrick Donahoe in a March 9 interview with Federal Times editors and reporters [Video]. The agency will use reductions-in-force (RIFs) and RIF avoidance measures in carrying out the downsizing, he said. The positions targeted, which will hit as many as 10 district offices and headquarters, include 3,500 administrative positions, 2,000 front-line supervisor and manager positions, and 2,000 postmasters. Donahoe said the announcement will be part of a broader effort to trim postal ranks by 30,000 positions this year [Clarification]. He said the USPS will use attrition and early retirement offers to reach that number. He said that if the USPS resorts to using a buyout offer, it will be targeted and not organization-wide. The Postal Service plans to make the official announcement on March 25.

Source: Federal Times

Fuel Costs Impact USPS

In addition to declining volumes, the Postal Service now faces another stumbling block to self sufficiency, rising fuel prices. Increases in fuel prices used by all modes of transportation have an impact on Postal Service operating costs. Gasoline costs are up almost 28% since the beginning of fiscal year 2011 and diesel prices are up 29%. The USPS will spend around $6 billion in purchased transportation services and fuel for delivery vehicles this year. Through December, USPS transportation costs are $106 million above plan during a period that diesel fuel prices were 4.8% above levels that existed at the time the financial plan was finalized and 23% below current levels. If oil prices stay at current levels, the spike in oil prices could add between $475 and $720 million in transportation costs to these contained in the original budget.

Source: Courier, Express, and Postal Observer

Job Opening

Looking to lead a multi-billion dollar organization with more than 500,000 employees? Hoping to find a career allowing you to flex your political and media savvy? Are you good on TV and OK working for a money-losing company (USPS posted a $451 million loss in January)? Then the U.S. Postal Service may want to speak with you. The headhunting firm SpencerStuart is in hot pursuit of an incredibly experienced political and media pro to serve as deputy postmaster general alongside U.S. Postmaster Patrick R. Donahoe.

FSS / One Billion Mailpieces and Counting

What took root more than 2 years ago with the installation of the first flats sequencing system (FSS) in Dulles, VA, is rapidly spreading nationwide. More than half of the 100 FSS machines scheduled for deployment are sequencing flat mail, and this month are expected to reach the milestone of having processed a combined total of more than 1 billion flats. According to FSS Executive Director Rosa Fulton, 59 FSS machines today are processing flat mail in delivery sequence order for more than 17,000 letter carriers in 900 zones at 23 dedicated processing sites. In July, when all 100 FSS machines are scheduled to be in full operation, the systems are expected to provide delivery sequenced flat mail to more than 45,000 carrier routes.

Source: USPS News Link

FSS Headaches

On a related note, the American Catalog Mailers Association (ACMA) and the Association for Postal Commerce (PostCom) are starting to work with their members after receiving several concerns about damaged mailpieces coming out of Flats Sequencing System (FSS)-processed zip codes. ACMA and PostCom are compiling a list of ZIP-Codes where the issues are occurring. Add your thoughts in the comments section below

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