Postal Service Closing Administrative offices, Eliminating Jobs, Offering Early Retirements

Some federal agencies will probably have trouble spending the extra money being distributed by the stimulus plan and extra money with increased agency budgets. But the Postal Service is taking aggressive cost-cutting measures including a hiring freeze and freezing salaries of some employees.

Many readers work in agencies with rapidly expanding budgets. The stimulus package added significant amounts of money for some agencies to spend and some of these agencies will no doubt have trouble spending it within a short time as it will take time to hire new people and set up administration systems to handle the additional revenue and workload.

But at least one agency has a different kind of problem. The. Postal Service is moving out to cut its costs in response to its ongoing financial crisis.

The Postal Service has announced it will be closing six of its 80 district offices, eliminating positions across the country and offering another early retirement opportunity. These actions are expected to save the Postal Service more than $100 million annually.

The six offices closing — located in Lake Mary, FL; North Reading, MA; Manchester, NH; Edison, NJ; Erie, PA, and Spokane, WA — house administrative functions. The Post Office says closing these facilities will not adversely affect customer service, mail delivery, Post Office operations or ZIP codes. The functions of these six offices will be assumed by 10 district offices within close proximity.

Additionally, administrative staff positions at the district level nationwide are being reduced by 15 percent. More than 1,400 mail processing supervisor and management positions at nearly 400 facilities around the country also are being eliminated and nearly 150,000 employees nationwide are being given the opportunity to take an early retirement.

Also, In the past year, the Postal Service has taken other cost-cutting measures, including:

  • Cutting 50 million workhours;
  • Halting construction of new postal facilities;
  • Negotiating an agreement with the National Association of Letter Carriers that adjusts letter carrier routes to reflect diminished volume;
  • Freezing salaries of all Postal Service officers and executives;
  • Instituting a nationwide hiring freeze;
  • Reducing authorized staffing levels at postal headquarters and area offices by at least 15 percent;
  • Selling unused and under-utilized postal facilities;
  • Adjusting Post Office hours to better reflect customer use; and,
  • Consolidating mail processing operations.

By streamlining operations and improving its efficiency, the organization is intending to protect its ability to provide affordable, universal mail service.