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Notice of USPS Decision to Consolidate All Originating And

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Notice of USPS Decision to Consolidate All Originating And September 9,2011 Mr. Cliff Guffey Certified Mail Tracking Number: President 7010 2780 0003 6469 2247 American Postal Workers Union (APWU), AFL-CIO 1300 L Street, NW Fax: (202) 842-4297 Washington, DC 20005-4128 Dear Cliff, This is to inform you of the Postal Service's decision to consolidate all destinating mail processing operations at the following Great Lakes Area location: • Flint, MI Processing & Distribution Center (P&DC) into the Michigan Metroplex, MI Processing & Distribution Center (P&DC) After review, it was decided that this consolidation is in the best interest of the Postal Service. Implementation of this AMP is expected to be completed by January 2012. 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. These consolidations will allow us to accomplish this goal by making better use of excess space, staffing, and equipment, and to process mail more efficiently. We have redacted information from the study in accordance with our standard practice. We have also redacted mailer names, companies, and titles that were notified of the study. The mailer names, companies, and titles do not appear to be relevant to the Union's representational responsibilities. Volume numbers associated with service standard changes have also been redacted. This data is commercially sensitive and could be advantageous to our competitors. In order to protect market share, the Postal Service must protect the confidentiality of this information. It is projected that this consolidation will result in significant savings for the Postal Service. Some affected career employees may be reassigned to other vacant positions. Reassignments will be made in accordance with the collective bargaining agreement. If you have questions, or need additional information, please contact Rickey Dean at (202) 268-7412. Patrick M. Devine Acting Manager Contract Administration (APWU) Enclosure (CA2011-760) Type of Distribution to Consolidate:i Destinating MODS/BPI Office Facility Name & Type:' Flint P&DC Street Address:! 250 E. Boulevard Dr. City:! Flint State:! MI 5D Facility ZIP Code:! 48502 District:i Southeast Michigan Area:' Great Lakes Finance Number: Current 3D ZIP Code(s):, 484, 485 Miles to Gaining Facility:! 38.5 Miles EXFC office:! Yes Plant Manager: I Richard Purdy Senior Plant Manager: i Michael Kotula District Manager:i Charles J. Miller Facility Type after AMP:; Post Office Facility Name & Type:~ Michigan MetroPlex P&DC Street Address:! 711 N. Glenwood City:! Pontiac State:! MI 5D Facility ZIP Code:i 48340 District:i Southeast Michigan Area:' Great Lakes Finance Number: Current 3D ZIP Code(s):, 480, 483 EXFC office:! Yes Plant Manager:! N/A Senior Plant Manager:i Michael Kotula District Manager:i Charles J. Miller Start of Study:: 11/16/10 Date Range of Data: Oct-01-2009 : Sep-30-2010 Processing Days per Year: 310 Bargaining Unit Hours per Year: 1,742 EAS Hours per Year: 1,819 Date of HQ memo, DAR Factors/Cost ofBorrowing! New a 7 Facility Start-up Costs Update 1- M__Y__,_2_0_1_0 -1 Date & Time this workbook was last saved: 9/2/201112:00 Area Vice President:! JoAnn Feindt Vice President, Network Operations:1, David E. Wiliams Area AMP Coordinator:1 Nancy Schoenbeck HQ AMP Coordinator:i Jug S. Bedi Package Page 1 AMP Data Entry Page Approval Signatures LIIl s..ct F*-Y I, 2011 losing Facility Name and Type: .;,.FIlnt.:r:=P~&OC;;"::",~.".,,... _ 8tNet AddntM: 250 e. BOUIevaid or. City:..:-,FIII1i:;:.:;- _ St8tIt: Ml Facility ZIP eo.:-T.82r.::=-- FInance Number: ~ CurnH'lt30ZlPCode(s):..:.~=..:.:...,:..:;.=- _ Type of DistrIbuIIon to Con8oIId8te:~Oe!tinating='=L _ Gaining Facility Name and Type:.;;.MIdlipn~~M8CI:::::·~-;;:.oPl..;::ll!tX:.:..P:...:&DC=~---------------­ StrMtAddrMs: 71T'Fr""GIenwood City: POi'iLC StlM: Ml Facility ZIP Cocfe:.:;:48340n:~,...--------------------- ~Number: ••• CurNnt 30 ZIP Code(.):...:.480=:,...483:..:;·...=.-· = _ ACI<NOWlEOGfMEN OF ACCOUNTABILITY ·1 ~IMt Iam IlCCOUI'ltabI8 for ~ and supporting \he integrity of all offlciel postal reporting sysIem:I. lneIuding Inenc::i8I repof1a and thole I1IIatln; 10 c:empIenoe wiltl contracting, complamelll or slmilIr el'b1a inYoIving \h$ inveItment and ~ of funds. as well ....systems to lMlNice to our cultomlnl. LOMIQ EACJUTY. •I ~ POS'tm8ster or Pfent -'nager: Richard Purdy 8enIor Pfent Manager. II Michael Kotula Dfstrict Manager: Charles J. Mllfer Pfent Manager: NlA Prfn!ed Na'M Senior Plant Manager: Michael Ku\uJ· Di9trlct Man_ger: Charles J. Mi1br CommeMI: _ Padcage Page 2 AMP Approvat Signatures Executive Summary Last Saved: September 2, 2011 Losing Facility Name and Type: Flint P&DC Street Address: 250 E. Boulevard Dr. City, State: Flint, MI Current 3D ZIP Code(s): 484, 485 Type of Distribution to Consolidate: Destinating Miles to Gaining Facility: 38,5 Miles Gaining Facility Name and Type: Michigan MetroPlex P&DC Current 3D ZIP Code(s): 480, 483 Savings/Costs Mail Processing Craft Workhour Savings = $3,850,767 from WorkhourCosts - Proposed Non-MP CraftlEAS + Shared LDCs Workhour Savings (less MainllTrans) = $579,258 from Other Curr vs Prop PCES/EAS Supervisory Workhour Savings = $83'1,684 from Other Curr vs Prop Transportation Savings = ($326,355) from Transportation (HCR and PVS) Maintenance Savings = $1,105,659 from Maintenance Space Savings = $0 from Space Evaluation and Other Costs -----=.::- Total Annual Savings = $6,04"")12 Total One-Time Costs = $180,617 from Space Evaluation and Other Costs Total First Year Savings = $5,866,395 =~;,;";,,;~;.,, Staffing Positions from Staffing - Craft Craft Position Loss =----'---- PCES/EAS Position Loss =------8 from Staffing - PCESIEAS Volume Total FHP to be Transferred (Average Daily Volume) = 979,439 from Workhour Costs - Current Current FHP at Gaining Facility (Average Daily Volume) = 5,063,395 from Workhour Costs - Current Losing Facility Cancellation Volume (Average Daily Volume) =------0 (= Total TPH I Operating Days) Service Service Standard Impacts byADV First-Class Mail® Priority Mail® Package Services Periodicals Standard Mail Code to destination 3·dlgit ZIP Code volume is not available Package Page 3 AMP Executive Summary Summary Narrative Last Saved: September 2, 2011 Losing Facility Name and Type: Flint P&DC Current 3D ZIP Code(s): 484, 485 Type of Distribution to Consolidate: Destinating Gaining Facility Name and Type: Michigan MetroPlex P&DC Current 3D ZIP Code(s): 480,483 1. BACKGROUND The Flint P&DC is a USPS owned facility that processes all destinating mail for the 484-485 ZIP Code range. Along with mail processing operations, the building houses a retail unit and a Business Mail Entry Unit (BMEU). There is also on site a Vehicle Maintenance Facility (VMF) in a separate bUilding. The Flint P&DC is located approximately 38 miles from the Michigan Metroplex P&DC in Pontiac, MI. On September 22, 2009, the originating operations of the Flint P&DC were transferred to the Michigan Metroplex P&DC. The Final Post Implementation Review (PIR) has been completed. This is not a building closure. A destinating AMP of all products except Express Mail is proposed. Flint's Express Mail will remain at the Flint P&DC since it flies out of Bishop International Airport in Flint. The Flint Post Office retail window, Delivery Unit 48503, and the BMEU, will remain in the building. The VMF will remain on the property in a separate bUilding. The total FHP to be transferred (average daily volume) is 979,439 pieces. 2. FINANCIAL SUMMARY Financial savings proposed for this consolidation of destinating operations are: Total First Year Savings: $5,866,395 Total Annual SaVings: $6,047,012 3. CUSTOMER SERVICE CONSIDERATIONS To accommodate flint destinating mail into Michigan Metroplex, service will be downgraded between Lansing and Michigan Metroplex.. There will be no changes to the Retail or BMEU units at either facility as a result of the AMP. The collection boxes on site at the Flint P&DC will be unchanged. 4. STAFFING IMPACTS Movement of mail will have an impact on staffing and will require movement of personnel. A total of 148 FTE Function 1 positions at the Flint P&DC will be affected by implementation of the AMP with an increase of 60 FTE Function 1 positions at the Michigan Metroplex P&DC. This is a net decrease of 88 FTEmail processing positions. There will not be an impact to Function 3A staffing since Flint does not have PVS service (LDC 34). Approximately 32 FTE Function 3B positions at the Flint P&DC will be impacted by the AMP. The Michigan Metroplex P&DC would increase by 18 FTE positions. This is a net decrease of 14 FTE in Maintenance. Three positions from other functions (LDC 08, 65, 79) will be eliminated in Flint. The net change to all craft staffing is a reduction of 105 FTE positions. One EAS position will remain in Flint, a SMO on Tour 2 to manage building maintenance and custodians. The net change to all PCES/EAS positions is a reduction of 8 positions. Summary Narrative (continued) Summary Narrative Page 2 SOOs to Craft 1 MOOs+SOOs to Craft 1 SOOs to Craft 1 MOOs+SOOs to Craft 1 (1 :25 target) (1 :22 target) (1 :25 target) (1 :22 target) 1: 28 1: 24 #OIV/O! #OIV/O! 1: 29 1: 24 1 : 28 1 : 24 1 Craft = FTR+PTR+PTF+Casuals 2 Craft = F1 + F4 at Losing; F1 only at Gaining 5. EQUIPMENT RELOCATION Six (6) OBCS machines and one AFSM-ATHS/AI machine will be transferred to the Michigan Metroplex P&OC. The cost to relocate this equipment is $180,617. Any movement of equipment will follow all approved protocols. The expense associated with relocating any excess equipment at the Flint P&OC is not included in the AMP.
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