FAYETTEVILLE — The U.S. Postal Service is studying the viability of cutting more than half of its 487 area mail processing centers nationwide by 2013, including the Fayetteville Processing and Distribution Center.
A drastic decline in the volume of first class mail is forcing the Postal Service to streamline its operations and possibly close 252 mail processing centers and 3,700 post offices. Projecting a record loss of $14 billion next year, the service needs to trim operating costs by $20 billion by 2015 to return to profitability, officials have said.
“It could come out that Fayetteville stays - I’m fine with that,” David Camp, Arkansas district manager for the service, said at a Wednesday public hearing. “I have the obligation ... to at least look at it - we’re looking at everything.”
About 75 people attended the public hearing at the UARK Bowl, a private conference meeting facility, in Fayetteville.
Along with the Fayetteville center, the Postal Service might consolidate processing centers in Harrison, Hot Springs and Jonesboro, said Leisa Tolliver-Gay, customer relations manager for the service’s Arkansas district. Fayetteville, Harrison and Hot Springs would be consolidated with the Little Rock Processing and Distribution Center.
The service announced Tuesday in Washington, however, that it would postpone any consolidations until May 15, in response to requests by U.S. senators seeking more time to pass postal overhaul legislation.
Tolliver-Gay said Congress has not granted the Postal Service more time to pay the $5.5 billion it owes the U.S. Treasury to fund health care benefits for future retirees.
The Jonesboro Customer Service Mail Processing Center would be consolidated with the Memphis Processing Distribution Center.
Consolidating Fayetteville would bring a projected annual savings of $5.9 million, according to the Postal Service’s website.
It would mean the loss of 91 jobs in Fayetteville, but 51positions would be created at the Little Rock center and could be filled by Fayetteville’s employees.
At Wednesday’s hearing, Ike Mills, president of American Association of Postal Workers Local 667, said he didn’t understand why the service was projecting a lower cost to consolidate Fayetteville with Little Rock, when consolidating Fort Smith’s center was going to cost more.
Earlier this year, a study of the Fort Smith Customer Service Mail Processing Center recommended it be consolidated with Fayetteville. The plan was later scrapped.
Mills on Wednesday said transportation costs for consolidating Fort Smith with Fayetteville was approximately $500,000. He said the study being evaluated now says it will only cost $100,000 to ship mail from Fayetteville even farther - 190 miles away - to Little Rock.
“How can we as a public have a viable opinion if [we] don’t have facts and figures to base it on?” Mills said.
The Fayetteville center absorbed part of the operations at the Harrison Customer Service Mail Processing Center this year.
Today, a meeting to discuss consolidating the Harrison center with Little Rock is scheduled at 6 p.m. at North Arkansas College in Harrison. The move would save $2.4 million a year and cost Harrison 18 jobs, while creating 11 in Little Rock, according to the service’s website.
In Jonesboro, a consolidation would save about $2 million a year, but cost 36 jobs, the website states. It doesn’t say if jobs would be created at the Memphis center.
The Batesville Customer Service Mail Processing Center was closed in June, and the Russellville Customer Service Mail Processing Center is being consolidated.
Tolliver-Gay said consolidating the processing centers hinges on approval from the Postal Regulatory Commission to change the standard for delivery of first class mail. She said the service is seeking approval to set a two-to-three day standard for delivery, which would eliminate overnight delivery of First Class mail.
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Northwest Arkansas, Pages 7 on 12/15/2011