US Postal Service has published a final rule today that revises the procedures for closing itsretail outlets, part of the company’s ongoing cost-cutting and restructuring measures.
At the beginning of this year, the loss-making US postal operator announced plans to close up to2,000 branches, stations and post offices throughout 2011, to help stem its huge losses.
USPS stressed that it was adapting to meet the evolving needs of its customers byconsolidating facilities and operations, adjusting delivery routes and restructuring administrativeand processing functions.
The regulations, published today in the Federal Register, the official legal informationservice of the United States government, aim to enhance transparency and public participation andincrease the efficiency of the discontinuance process related to the company’s retail operations,USPS explained.
The revised procedures include four main features: top-down processes; factors informing aninitial feasibility study; process management; as well as station and branch discontinuanceprocedures.
As part of the top-down process, management at USPS headquarters is allowed to identifycandidate offices for initial feasibility studies, thereby enhancing consistency of approach. Therule also clarifies the factors that could be used to identify candidate retail units for aninitial feasibility study to include earned workload, insufficient customer demand and theavailability of alternative expanded access channels.
In addition, the final rule enables improvements in administrating and managing thediscontinuation process. In terms of stations and branches to be closed, it enhances public inputand transparency in connection with reviews of USPS-operated stations and branches through the useof public posting requirements and public input procedures.
“With an abundance of locations that offer postal products and services – including grocerystores, drug stores, office supply stores, and other retailers, both physical and online –customers have more than twice the number of outlets for postal products and services compared tobrick-and-mortar Post Offices,” USPS said.
Last year, USPS reported an $8.5 billion loss and said it would run out of money in 2011unless economic conditions improved and Congress permitted certain changes in the law that allowedthe organisation more flexibility to take decisions.
The company told the US government last month that the ongoing realignment of its postalfacilities will not be enough to avoid the liquidity crisis that threatens the company, despite itscost-cutting measures. Therefore, the company is seeking the passage of legislation that wouldaddress the statutory schedule for prefunding of retiree health benefits, address the overfundingof pension benefits, and provide the authority to adjust delivery frequency.
Last week, USPS suspended its award programme for employee recognition for this year and hasfrozen certain officer and executive compensation schemes. In June, it suspended its $115 millionbi-weekly payments to certain employee pension funds as another measure to preserve liquidity.
