USPS Resumes Reductions, Including $10,000 Early Retirement Offers to Select Employees
To get early retirement and the $10,000, qualified workers must accept the offer by Aug. 18 and leave the company by Sept. 30, Government Executive indicated. Those who decline may seek a new assignment at a different post office, but some workers may be laid off if 3,000 eligible workers do not accept early retirement or reassignment. If necessary, layoff notices will be sent by mid-October, with separation taking effect by Jan. 9, 2015. If an employee fails to accept early retirement, opt for reassignment or resign, that employee will be laid off, the USPS told Government Executive.
Another plan initiated in 2012 to reduce costs, the USPS Network Rationalization plan will resume next year. The plan calls for the closure of processing facilities that originally were set for February, but were pushed back for undisclosed reasons, according to Government Executive at the time of the delay. The USPS now indicates it wanted to ensure efficient operations moving into phase two, according to its website.
In 2012 and 2013, 141 processing centers were closed, and 82 more are scheduled for the second round, according to the USPS in a letter to customers last week. The first phase resulted in $865 million in savings with "negligible service impacts" and no employee layoffs. The second phase is expected to save an additional $750 million annually and be completed by the fall of 2015.
USPS informed the union of its intent to conduct feasibility studies at 242 of its mail-processing sites in 2011 and concluded it would consolidate 225 of those in 2012, Allen Mohl, USPS contract administration manager, said in a letter sent last week to John F. Hegarty, National Postal Mail Handlers Union president.
"It is projected that these consolidations will result in significant savings for the Postal Service," Mohl said. "Some affected career employees may be reassigned to other vacant positions. Reassignments will be made in accordance with article 12 of the collective bargaining agreement."