Tuesday, November 9, 2010

Postal Service studies consolidation of Huntsville facility with Birmingham

by Budd McGlaughlin
From al.com:

HUNTSVILLE, AL -- The Postal Service is studying operations at its Wall Triana Highway facility and the feasibility of consolidating some of them with the Birmingham Processing and Distribution Center.


But, said a spokesman for the Postal Service, it has nothing to do with the quality of work here and a possible decision is still months away.

"The objective is to reduce costs, nothing else," said Joseph Breckinridge, the communications director for the Alabama-North Florida region.


The study, known as an Area Mail Processing study, involves an extensive review of mail processing and transportation operations in the respective areas served by the Huntsville and Birmingham plants.

The Postal Service has been searching for ways to cut costs in the way of a continuing loss of volume and revenue. From its peak in 2007, when 212 billion pieces were processed and delivered, total mail volume declined more than 40 billion pieces - with even sharper drops in single-piece first class mail. Experts expect this trend to continue into the foreseeable future.

"As a result of volume losses, we have more facilities, equipment and people than we need to process a declining volume of mail," said William J. Mitchell, the Postal Service's Alabama District manager. "We have to reduce the size of our network because we are no longer receiving enough revenue to sustain its cost. One way to do that is to consolidate operations where feasible.

"That's why we're doing this study. Consolidating processing operations and placing our people where we need them always makes good business sense. We're only doing what any company would do when hit with sharp and persistent declines in income."

Breckenridge said the operations studied for consolidation concern processing mail originating in North Alabama. That operation would go to Birmingham, which is how mail is already distributed on weekends.

There are 210 people who process mail at the Wall Triana distribution facility, which serves all of North Alabama, Breckenridge said.

"We have others who finalize mail for delivery at the post offices and stations throughout Northern Alabama - but they would not be affected," he said. "Likewise, we have letter carriers and retail clerks but they would not be affected either."

He said in other consolidation moves, career employees have been placed in other Postal Service jobs.

But Breckenridge stressed that this is just a study and "we are many months from even a tentative decision."

The Postal Service is soliciting the public's input as part of the study process. Comments may be submitted to: Consumer Affairs Manager, U.S. Postal Service, P.O. Box 395, Birmingham AL 35203-0395