Postal Service Delays Facilities Closures: Jobs vs. $750 Million in Savings

Thursday, May 28, 2015
Postmaster General and USPS CEO Megan Brennan

The U.S. Postal Service (USPS) is delaying another round of shuttering post offices and other facilities—a move that could save the agency $750 million a year—because of opposition on multiple fronts.

 

USPS officials were preparing to close 82 locations this year as part of its “network rationalization,” or consolidation effort that saw 141 facilities eliminated in 2012. The 2012 closures have saved USPS $865 million annually. The dates for 68 scheduled closures have been changed to “TBD” (to be determined), according to the latest schedule (xls) produced by the agency.

 

The closures have come under attack from Republicans and Democrats in Congress whose states and districts faced job losses as a result. More than 7,000 jobs are expected to be lost. Postal unions and large mailers also opposed the closures, according to Government Executive.

 

Postal officials said the consolidation program would not resume until next year.

-Noel Brinkerhoff

 

To Learn More:

USPS Suspends Remaining Facility Closures Scheduled for 2015 (by Eric Katz, Government Executive)

Postal Service Consolidation List (xls)

Federal Report Calls for Delay in Sales of Historical Post Offices, but the Rest Are Still Fair Game (by Ken Broder, AllGov California)

African Americans Could Suffer Most if Postmaster Is Right About Half of Post Offices Closing by 2018 (by Noel Brinkerhoff and Ken Broder, AllGov)

Comments

anonamouse 8 years ago
Crocodile tears? All the Congress has to do to fix the postal service's budget problem is to repeal the pension requirement Congress itself placed on USPS in 2007 (if memory serves). The requirement is that USPS cover ALL its pension liabilities out to the year infinity up front; no other business in America is subject to this crushing accounting requirement. I have no evidence but think it's safe to assume Fedex/UPS lobbyists, whose masters would like to see this competitor eliminated, pushed the law through.

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