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Notice of USPS Decision to Consolidate All Originating

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Notice of USPS Decision to Consolidate All Originating LABOR RELATIONS ~ UNITEDSTIJTES ~ POSTtlL SERVICE July 28, 2009 Mr. William Burrus CERTIFIED MAIL NUMBER President 70030500000387532812 American Postal Workers Union, AFL-GIO FAX (202) 842·4285 1300 L Street, NW Washington, DC 20005-4128 Dear Bill: This is to inform you of the Postal Service's decision to consolidate all originating operations, except Priority Mail, from the Flint, Michigan Processing and Distribution Center (P&DC) to the Michigan MetroPlex, Michigan P&DC. On May 8, 2006, you were advised of our intent to conduct an Area Mail Processing (AMP) feasibility study. After review, it was decided that this consolidation is in the best interest of the Postal Service. Implementation of the Flint AMP is expected to be completed by October 2009. Enclosed, per your request is a copy of the completed study. The Postal Service must continually look to improve productivity and increase efficiency while maintaining excellent service. The decline in mail volume and revenues due to the economic downturn has only heightened the need for such improvements. The consolidation of operations from the Flint P&DC to the Michigan MetroPlex P&DC will allow us to accomplish this goal by making better use of excess space, staffing, and equipment, and to process mail more efficiently. It is projected that this consolidation will result in significant savings for the Postal Service. Some affected career employees may be reassigned to the Michigan MetroPlex P&DC or to other vacant positions. Reassignments wiil be made in accordance with the collective bargaining agreement. If you have questions, or need additional information, please contact Mary Hercules at (202) 268­ 4356, inCerelY, '~ JMh n W D ~;i~S)..j~ :~~ ~vrr-. 1Manager \ ~ Contract Administration, (APWU) Enclosure 475 L'EIJFANT PlJ\ZI\SW WI>.SHIIJGTON DC 20260-4100 MVW,lJSPS,OOM ----- AMP Data Entry Page ----- Type of Distribution to Consolidate:j Originating MODSlBPI Office Facility Name & Type:j Flint P&DC Street Address:. 250E. Boulevard Or. City:! Flint P&DC Slate:! Mt 50 Facility ZIP Code:I 46502 District:i Southeast Michigan Area:i Great Lakes Finance Number:' 253292 Current 3D ZIP Codels):! 464,485 MJlesto Gaining Facility:! 38.5 EXFC office:1, Yes Plant Manager:I Richard Purdy Senior Plant Manager:i Peter Edward District Manager:i Kelly M. Sigmon Facility Type after AMP:; DOC ~;;:;-"'::"'-~-"'-=-:::---=?:='-;--/~~ ------ .- ,.------ -- ~~--. -,-~. -_. -- -~ --~ -----_._--- Facility Name & Type:! Michigan MetroPlex P&DC Street Addre..:! 711 N. Glenwood City:! Pontiac Slate:! MI 6D Facility ZIP code:i 48340 Olstricl:j Southeast Michigan Area:j Great Lakes Finance Number:. 258231 Current 3D ZIP Codels):! 480, 483 EXFC office:! Yes Plant Manager:,I (Left Blank Intentionally) Senior Plant Manager:I Peter Edward District Manager:j Kelly M. Sigmon Start of Study:; 12104108 Date Range of Data: Jul-01-2007 : Jun-30-2008 Processing Days per Year: 310 Bargaining Unit Hours per Year: 1.750 EAS Hours per Year: 1.825 Date of HQ memo, DAR FactorsICost ofSOmJwlngl New November 28, 2008 Facility Starl-up Costs Updaoo f------------1 Date & Time this workbook was last saved: 712212009 14:08 Area Vice President:~ JoAnn Pelndt Senior Vice President, Operations:! William P. GalUgan Area AMP Coordlnator:[ Nancy Schoenbeck HQAMP CoordInator:i Roland Smith rev 12/1012008 PackagePage1 AMP Data Entry Page (O--'-~ L,; ORIGI:\L Approval Signaturll6 LastSewd: Feb/I.Illryt7.2.Oll9 Losing Fadltty Name and Type: F~t p~ 8tftl8t Addrna: $0' E. Boule\lflrd Dr. cttv: Flritp&OC State; UI Facility ZIP Code: 4!l!i02 Flnlnc.·HumbIII': 2532&2 CUlftlnt3D ZIP CodI(a): 481,482 TYJM of DlWJ)ution to COnaolIdattI:,;0i!""l!!!""""""'L _ Gaining Facility Name and Type: ~lgan MttIroPlix P&OC SInMIt AddreU: 111 N. Glenwood CIty:Pontl8c St8Ie: MI F.cIIIly ZIP Code: aB340 FInanc8 Number: 258231 CUmtM 3D ZIP CoH(sJ: 480. 483 ACKNO'NtEDGEMEN OF ACCOUKTABlIJ'tt .lldmcWledgethl!t-ltlm 8COOUfileblefor f8Sl)eCtiOg and supportll1(l the integrity of all afficiaI postal reporting$ySUIm&, 1ne1udlrlg flnencill ~ and ItIOMIlIla1!ng 10 compliance WIth eornractIng, compilment, orsimilar elforts involving 1I'l1 investmaf1t and Bllpeooltul1l of funds. as: _ as allsystem_ to "Nice to 0....customers, Postmasteror Plant Manager; RIchard Purdy _PIan,_ Peter Edward ,., ,. District Manager: KellyM. Sigmon._- Plant Manager. (Left Blank Intentionally) . ". Senior--Plant Manager. Peter Edward ..-' ,I ._- ,. OE1t8 District Manager: Kelly M. Sigmon """"'- AR!AlMi, Aree Vice President: JoAnn Felndt ImplMMntaUonData: senior Vice PresIdent Operation.: William P. Galligan J DaF I Package Page7 AMP Approval Signatures Executive Summary LastSaved: July22,2009 Losing Facility Name and Type: FlintP&DC S1reetAddress: 250 E- Boulevard Dr. City, State: Flint P&DC, MI Current 3D ZIP CGde(B): 484, 485 Type of Distribution to Conaolidate: Originating Miles to Gaining Facility: 38.5 Gaining Facility Name and Type: Michigan MetroPlex P&OC Current 3D ZIP Code(B): 480, 483 Summary of AMP Worksheets Savings/Costs Processing Craft WorkhourSavings - $818,518 from WOtkIIourCcsta - Propos«! Non-Processing CraftWorkhour Savings (_MaintfTrans) =__-,18::0:.908= from OUter Curr V$ Prop PCESIEAS Workhour Savings = $150,618 from Other CU1T V$ Prop Transportation Savings = ($64,522) from TrensportItfon (HCR.1IdPVS) Maintenance savings = $426,098 from Malntemmae Space Savings = $0 fromSpBoeEvaluatJonandOtherCM" Total Annual Savings = $1,398.620 Total One-Time Costs = $113,835 fromSpace Evaluation and Other CO$lS Total First Year Savings = Staffing Positions Craft Position Loss =__-,,-17 __ from $tatrlng - Crallf PCESIEAS Position Loss =__~2 __ fromstamtlQ· PCESIEAS Service Total FHPto be Transferred (AverageDailyVolume) = 294,892 from lNbikhow COsts - CUtrell! Current FHPat Gaining Facility(Average DallyVolume) ;;; 5,242,759 rrcm WOt1CItOVt cese •Current 3.Dlgtt ZIP Code Pair Service Standard Impacts Net Change % NetChe First-Class MailEl 62 4 se 1.6% 0.0% Priority Mai~ 1-----="­o o o Periodicals 62 4 68 1.6% Standard Mail o o o 0.0% Package Services o o o 0.0% rev 11/0512008 Package Page3 AMP Executive Summary Summary Narrative last Saved: July 22, 2009 Losing Facility Nam" and Type: Flint P&DC Current 3D ZIP Code(s): 484, 485 Type of Distribution to Consolidate: Originating Gaining Facility Name and Type: Michigan MetroPlex P&DC Current 3D ZIP Code(s): 480, 483 AREA MAIL PROCESSING (AMP! PROPOSAL NARRATIVE SUMMARY Flint MI f&OC 484-485 Michigan Metroplex PIpe 480· 483 Consolidated Site Gaining Site 1. BACKGROUND The Flint P&De is a USPS owned facility that processBS all Originating and Destinatingmail for the 484-485 ZIP Code range. Along with mall processing operations, the building housesa retail unit and a Business Mail Entry Unit (BMEU). There is also on site a vehicle MaintenanceFacility (VMF) in a separate bUilding. The Flint P&De is located approximately 38 miles from the Michigan Metroplex P&DC in Pontiac, MI. For the time periodused for the baselineAMP data (JUly 1, 2007- June 30, 2008), the Function 1 processing for the 480 SCEand 483 SCEconsisted of four main mail processingfacilities. The Royal Oak P&De was in a USPS owned building that housed letter mail OJ)el"atloM including operationsassociatedwith collection mail. The Troy Automation Facility (TAF) was a leasedfacility that housedflat and parcel operationsand the P&DCadministrativeoffices. DDC1 had a total of 21 DBCS machinesand 6 docks. DDC2had a total of 18 DBCS machines and 7 docks. Both DOC's were leasedfacilities. Mail processing operationsalso took place at the Southfield and UticalSteriing Associate OffIces(LOC 41). Mail processingoperationsfrom these six locationswere consolidatedinto the new Mktligan MetroplexP&DC loealed In the city of Pontiac, Ml in summer and fall of 2008 (Which is after the period usedfor current baselinedata). Data for the baselinetimeframe was not from the four most recent quartel'8to avoid splitting the baselinetimeframe betweenthe old facilities and new one. An originatingAMP of all products except Priority Mail is proposed. The total FHP to be transferred(average daily volume) is 294,892 pieces. The MichiganMetroplex P&DCwiiJ continueto send originating Priorityand Expt8S$ Malt to the Detroit PriorityMail Centerforprocessing,as they Currently do. The Flfnt P&DC will continue to keep originating Priority and process as current Flint's ExpressMail will also remain at the Flint P&DC since It flies out of Bishop IntemaUonal Airport in Flint. The FlintP&ce will send its RegistryMail and CFS mail to the MichiganMetroplex. 2. FINANCIAL SUMMARY Processing Craft Workhour Savings = $878,518 Non-Processing Craft Workhour Savings (less Maintrrrans) = $0 PCES/EAS Workhour Savings = $150,61S Transportation Savings = ($84,522) Maintenance Savings = $425,098 Space Savings = SO Total Annual savings = $1,398,620 Total One-Time Costs $113,835 Total First Year Savings = $1,284,785 rev04123/2009 Package Page 4 'AMP Summary Narrative Summary Narrative (continued) Summary Narrative Page 2 3. CUSTOMER SERVICE CONSIDERATIONS The proposed AM~ would result in an overall improvement in servIcefor FirstClass Mail. The service standardfor FirstClaGG Mallgoingfrom Flint484-4135 10 RoyalOak 480, 483wouldgo from lwo day to one dayand mailgoingfrom RoyalOak 480,483 to Flint484-465 would go from twoday to oneday. Mailgoing from Film484-485 to Saginaw 486-487 would go from one day 10twoday. TI1I& Is net improvement of 35,044 pieces per day. VIhlile the 'Service Standards Impacf' tab in the Flint AMP workbook shows upgrades and downgrades to Priority Mall service, we do not intend to change, as a resutt of the AMI?, the current method or location for processing Flinfs originating Priority. It will remain at the Flint P&DC for now. The Michigan Metroplex does not process its own originating Priority Mall (it is done by the Detroit priority Mail Center), so it doesn't make sense to send Flint's originating priority to the Michigan Metroplex. In the future wewill re-vlslt, separate and Independent from the AMP, the feasibility of sending Flint's originating Priority directly to the Detroit Priority Mall Center.
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