Notice of USPS Decision to Consolidate All Originating Mail
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----\ LABOR RELATIONS MAR 1 1 2011 ~ UNITEDSTJJ.TES , I!EiiII POSTJJ.L SERVICE __--i\ March 10, 2011 Mr. Cliff Guffey Certified Mail Tracking Number: President 70993400000905149651 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 originating mail processing operations at the following Great Lakes Area location: • Saginaw, Michigan Processing and Distribution Center (P&DC) into Michigan Metroplex 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 October 2011. 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. It is projected that this consolidation will result in significant savings for the Postal Service. Some affected career employees may be reassigned to the gaining facility or 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 Barry Carpenter at (202) 268-6892. John W. Dockins Manager Contract Administration Enclosure 475 L'ENFANT PiJIZA SW WASHINGTON DC 20260-4100 WWW,USPS,GOM (CA2011-209) ----- AMP Data Entry Page ----- Type of Distribution to Consolidate:i Originating MODSIBPI Office Facility Name & Type:: Saginaw P&DC Street Address:~ 1233 S Washington Ave City:! Saginaw State:I MI 50 Facility ZIP Code:! 48601 District:: Greater Michigan Area:! Great Lakes Finance Number: Current 3D ZIP Code(s):, 486,487 Miles to Gaining Facility:! 71.3 Miles EXFC office:! Yes Plant Manager: I James Launius Senior Plant Manager:' Lee A. Thompson District Manager:: Nancy L. Reltinhouse Facility Type after AMP:;=================DDC Facility Name & Type:: Michigan Metroplex Street Address:! 711 N Glenwood City: I Pontiac State:I MI 50 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:' NIA Senior Plant Manager:' Michael Kotula District Manager:; Charley======------------,Miller Start of Study:; 07/13/10 Date Range of Data: Jul-01-2009 : Jun-30-201 0 Processing Days per Year: 310 Bargaining Unit Hours per Year: 1,750 EAS Hours per Year: 1,825 Date of HQ memo, DAR Factors/Cost ofBorrowing! New Facility Start-up Costs Update 1- D_e_c_e_m_b_e_r_2_3_,2_0_0_9__---1 Date & Time this workbook was last saved: 2/28/2011 14:44 Area Vice President: JoAnn Feindt Vice President, Network Operations:! David E. Williams Area AMP Coordinator:i Nancy Schoenbeck HQ AMP Coordinator:i Jug S. Bedi rev 08113/2009 Package Page 1 AMP Data Entry Page Approval Signatures Last Slt\Ied: 0c:t001If' 15, 2010 Losing Facility Name and Type: .:;Sa~g~ir:na~W~P&;D~C::::,.=-= _ Street Addl'OB8: 1233 S Washington Ave City: Saginaw State: MI FaCilltyZfPCod.~'~4i86i~O,,"1~-i~-=-=-=-FlnancEi Numbe. _ Current 30 ZIP Code{I):-:m6,_741j, Type of Dlstribution 10 Consolidate: .::O~"",91,,!·n~alln~9 _ Gaining Facility Name and Type: Michigan Metroptex Street Add.....: 711 NGlenwood City: pontiac State: MI Facility ZIP Coel.: "''1834''''"''0.--------- Finance Number:.""'-" Current 30 ZIP C_(.l:~ ACKNOWLEDGEMENT OF ACCOUNTABILITY· I acknowledge that I am accountable for rvspec:ting and $UppOI1ing Ihet inli;Jgrity of all official POStal reporting systems. incfuding finenctal rltPQl1$ and those relating to compliance wtth cont«lcijng, complement or similar efforts involving the In...estment and expenditure of funds, ~$ well as all sYttems to service to our cU$tOmer1ii, ~GfACIUn~ Postmaster or Plant Manager: . '" <. ~/: _~Ja_m~es:....::La::.u::.n::.i:,u~"'nr.:"';::.."'N"''''''''=------~cilt.=-"';: p~ Senior Plant Manager:/.' )/ ~ ~s~._:!7tP~ Lee A. Thompson {/. ~ /V-/J=-ZeJ/O Printed Nam. .". __.. 0... Dlstrfct Manager: ~~,_ ' Nancy L. Rettinhouse ~s~jj 1.1 UO PrlrllEKI Narne 'Ill' _,..... GA1tIJ1:l.G FACILITY.; Plant Manager: NIA Printed Namct D",. Senior Plant Manager: Michael Kotula District Manager: Charley Miller JoAnn F~:; Vice President ::====~~~~~~~~~~~~~~~~~j ------------p-,-''''-••-N-_------- 7hIDJho Implementation Oate:- _ WOOUARTEBS: Vice President Network Operations David E. Williams Primed Name Comments: Package Page 2 AMP Approval Signatures Executive Summary Last Saved: February 28, 2011 losing Facility Name and Type: Saginaw P&DC Street Address: 1233 S Washington Ave City, Slate: Saginaw, MI Current 3D ZIP Code(s): 486, 487 Type of Distribution to Consolidate: Originating Miles to Gaining Facility: 71.3 Miles Gaining Facility Name and Type: Michigan Melroplex Current 3D ZIP Code(s): 480, 483 Summary of AMP Worksheets Savings/Costs Mail Processing Craft Workhour Savings = $1,053,550 from Worl<hourCosls-Proposed Non-MP CraftlEAS + Shared LDCs Workhour Savings (less MainVTrans) = $131.854 from Other Curr vs Prop PCES/EAS Supervisory Workhour Savings = $172,818 trom Other CU" vs Prop Transportation Savings = ($658,235) trom Transportal'm (HCR and PVS) Maintenance Savings - $324,078 from Maintenance Space Savings -'$"'0'- from Space Evaluation and Other Costs Total Annual Savings =----$1,024,066 Total One-Time Costs = $57,500 from Space Evaluation and Other Costs Total First Year Savings =_...;:;;$9;;;;66;,;;,5;;;;66;;.. Staffing Positions Craft Position Loss =__-,3",3,-__ from Staffing - Craft PCES/EAS Position Loss = (6) from Staffing - PCESIEAS ----""--- Volume Total FHP to be Transferred (Average Daily Volume) ;::; 256,025 from Workhour Costs - Current Current FHP at Gaining Facility (Average Daily Volume) = 4,844,506 from Workhour Costs - Current Losing Facility Cancellation Volume (Average Daily Volume) = 173,631 (= Total TPH f Operating Days) Service Service Standard Impacts byADV ADV ADV ADV % First-Class Mail® 10,357 5,192,591 , 100,0% Priority Mail® 0 ° 44,777 100.0% iC'" );, 2;C Package Services 44 176° 16,052 ?;!fj' 98.9% Ii ",,{ o:c7e" Periodicals N/A' N/A' Sf N/A' N/A' Standard Mail N/A' N/A' ~ N/A' N/A" Codo to dos\lnalIU) 3.Ji(Jit ZIP Code volume is nol dV8liabie rev 10/1512009 Package Page 3 AMP Executive Summary Summary Narrative Last Saved: February 28, 2011 Losing Facility Name and Type: Saginaw P&DC Current 3D ZIP Code(s): 486, 487 Type of Distribution to Consolidate: Originating Gaining Facility Name and Type: Michigan Metroplex Current 3D ZIP Code(s): 480, 483 Background: The Saginaw, MI P&DC is a leased facility that processes originating and destinating volumes for ZIP Code areas 486 487. Saginaw P&DC also has a postal owned DOC at Wheeler Street. Express mail for the 486-487 ZIP codes will continue to be processed at the Saginaw, MI P&DC. The AMP would transfer originating letter and flat volumes to the Michigan Metroplex P&DC, which is a postal owned facility that currently services the 480 and 483 ZIP Code ranges and is located approximately 71 miles from the Saginaw, MI P&DC. The Priority Mail is not considered in this AMP study. The Michigan Metroplex does not have an outgoing Priority operation and all outgoing Priority mail for the Michigan Metroplex service area is processed through the Detroit District. There is presently a separate initiative underway to move the Saginaw outgoing Priority volume to the Detroit District, however that is outside the scope of this AMP. In addition to mail processing operations, the Saginaw plant houses a Business Mail Entry Unit (BMEU), this operation will remain unchanged. The proposal would make the Saginaw, MI P&DC a destinating operation for letters and flats. Financial Summary: Financial savings proposed for the consolidation of originating operations are: Total First Year Savings $ 966,566 Total Annual Savings $1,024,066 The total first handled pieces (FHP) to be transferred (Average Daily Volume) cancellations are 173,631 pieces. Customer Service Considerations: This proposal will result in no downgrades in FCM or Priority mail from Saginaw to the Michigan Metroplex or to the Detroit, MI P&DC. EXISTING SATURDAY Consolidation The Gaylord, Ml office currently AMP's outgoing volume to Saginaw on Saturdays. This successful practice occurs every Saturday except the two Saturdays prior to Christmas when the GLA has each site proCess their local originating volumes. The Saginaw, Ml to Michigan Metroplex AMP would require that Gaylord split the AMP of its outgoing mail between Saginaw, MI and Traverse City, MI in order for both sites to be successful. Due to this scenario it has been determined that Gaylord, Ml, PO will AMP outgoing mail to Traverse City, MI P&DF on Saturday if the Saginaw consolidation is approved. Average cancellations for a Saturday at the Gaylord, Ml, PO are approximately 30,000 pieces. Transportation Changes: Total annual transportation costs to achieve this AMP are $658,235, all of which is HCR transportation Saginaw will incur oasts for 1 addllional trip to the PMC, this wHi allow for the majority of the mail to be at the NDC and the PMC by 2145 with the final 1000 pieces arriving at 2245. Saginaw will continue to improve mail arrival from Customer Service to advance more volume to the Detroit NDC and the Detroit plant on the earliest transportation available. The Detroit, MI P&DC will process Saginaw's outgoing SPR's. This mail should arrive at the Detroit, MI P&DC no later than 2230 and wrt:h the volume being less than 3,000 pieces it will not inhibit their ability to clear. All other transportation will hub at the Saginaw plant before going directly to the Michigan Metroplex.