Consolidation and cost-cutting are USPS 2013 resolutions


The Postal Service will undertake cost saving measures and service changes in 2013 to increase available revenue, says Postmaster General Patrick Donahoe.

In his State of the Postal Service presentation, Donahoe said on Jan. 24 the service remains "in a very tenuous position as far as cash on hand" because Congress has not passed legislation to aid the Postal Service.

Among the efforts it will carry out are shutting down more processing plants and instituting changes to the routes it uses. The service says an additional 18 processing plants could be shuttered in 2013 in addition to the roughly 90 plants already targeted for closure. Delivery routes are being adjusted as part of its recent carrier union negotiations.

In addtion, door-to-door mail delivery could decrease in favor multiple mailboxes in a single location and on-street parcel delivery lockers. Such arrangements are already common in newer residential subdivisions. 

"We'll be looking at some centralized delivery, rolling that out across the country--no major push, but starting to move on that," said Donahoe.

Donahoe also said he will continue to press Congress for the ability to create its own healthcare plan independent of the federal system, for the return of billions in pension surplus from the Federal Employee Retirement System and the removing Saturday day deliveries except for packages.

The Postal Service will not pay the pre-funding for its retiree healthcare benefits this year because it wants to have enough money to pay employees and suppliers to ensure delivery of the mail, he also said.

For more:
- watch Donahoe's 2013 "State of the Postal Service" address (embedded video)

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