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Postal Service study could deliver bad news to Youngstown



Published: Wed, July 20, 2011 @ 12:10 a.m.

Shipping out work to Akron or Cleveland would cost 500 jobs, $500K in taxes

By Karl Henkel

khenkel@vindy.com

YOUNGSTOWN

Nearly 500 local jobs and $500,000 in city income taxes could be at risk if the U.S. Postal Service decides to consolidate Youngstown’s processing and distribution facilities.

The Postal Service will conduct a study to decide if the Youngstown workload can be shouldered by postal facilities in Akron or Cleveland.

The USPS says the study is needed because of the current economic downturn and continued Internet diversion that has led to a 20 percent decline in mail volume since 2007.

The effect has been historically large deficits, said Todd Hawkins, the Postal Service’s district manager for Northern Ohio.

“As a result of the volume loss, we have more facilities, equipment and people than we need to process a declining volume of mail,” he said. “We have to reduce the size of our network because we are no longer receiving enough revenue to sustain its cost.

“One way to do that is to consolidate operations where feasible.”

The Youngstown processing center employs 215, and the distribution center employs 261. That compares with 2008 staffing levels of 247 at the processing center and 283 at the distribution center.

It’s more likely that work normally done by the processing center would be consolidated and that mail distribution routes would be streamlined.

Youngstown’s facilities are smaller than those in Cleveland and Akron and has seen a mail-volume decrease that mirrors the national decline.

“Mail would continue to get delivered,” said Victor Dubina of the postal service. “It wouldn’t affect what people see.”

David Bozanich, Youngs-town’s finance director, said the $500,000 tax loss plus increased unemployment would be a hindrance to the city.

“Either way, it’s not good,” he said. “We need every job we can get in this city.”

If the feasibility study supports the business case for changing mail-processing operations, the postal service will have a public meeting to allow the community to ask questions and provide feedback. This input will be considered in the final proposal.

The postal service previously consolidated Youngstown’s South and East Side distribution centers earlier this year.

USPS, which receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations, is soliciting the public’s input as part of the study process. Comments may be submitted to Consumer and Industry Contact Manager, U.S. Postal Service Northern Ohio District, 2400 Orange Ave., Room 25, Cleveland, Ohio 44101-9631.

The postal service says it has annual revenue of more than $67 billion and delivers nearly 40 percent of the world’s mail.


Comments

1cav0822(16 comments)posted 3 years, 4 months ago

This area cannot afford to lose 500 local jobs. There has to be another alternative

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2endthismess(324 comments)posted 3 years, 4 months ago

Why can't the enire work load slow up be a 3 way balance and correction between Cleveland, Akron AND Youngstown??? Certainly they are having the same problem, so..spread out the correction method.

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3TB(1167 comments)posted 3 years, 4 months ago

because the population doesn't merit it

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4youngstownsteve(78 comments)posted 3 years, 4 months ago

USPS can save alot of money by reducing mail delivery to three days a week. One area can receive mail Mon-Wed-Fri, use same carriers and vehicles to deliver another area Tues-Thurs-Sat. There is really nothing so important that cannot be held up for one day. If there is, there is express mail.

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5Photoman(1013 comments)posted 3 years, 4 months ago

We need this same type of study done on our massive, ever expanding, central government with the same possibilities of consolidation, elimination and saving.

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6Irishtiger(45 comments)posted 3 years, 4 months ago

Ever notice how these studies NEVER eliminate a managers job? From a long time ago, letter carriers and clerks did their job diligently. But the new way of doing things implimented by people who couldn't do any kind of hard work is the death knell of the Postal Service. Ever hear the PMG talk of eliminating manager positions? Nope.

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7jimjim(5 comments)posted 3 years, 4 months ago

I think this is in all reality great news. Finally Youngstown in coming in with the times. We don't need the post office, with all the internet social networks, and private companies like fedex, and ups. We can save the tax payers of Youngstown $20,000,000.00 in taxes we pay for public salaries. And Youngstown is worried about $500,000 in taxes, get some real jobs. Now if we could just eliminate all the entitlement programs Youngstown would just blow away.

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8Harley_Guy(117 comments)posted 3 years, 4 months ago

It's simple economics - the sorting facility in Youngstown is smaller and isn't capable of handling the extra burden of sorting Akron's or Cleveland's mail; however, Akron and Cleveland's sorting facilities are large enough to absorb Youngstown.

If the USPS can reduce it's carbon footprint by eliminating a sorting facility - would this make the bleeding heart liberals happy?!? Oh wait, only if it doesn't affect them ... I keep forgetting that methodology!!

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9Harley_Guy(117 comments)posted 3 years, 4 months ago

@ youngstownsteve & foodforthought - That idea was in the USA Today Economy Section already...

http://www.usatoday.com/money/economy...

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10republicanRick(1219 comments)posted 3 years, 4 months ago

Postal service could go to Mon-Wed-Fri and Tues-Thur-Sat delivery -- two 3 day shifts. Part time workers then hired to work a 3 day shift -- wives and mothers may want to work parttime. Early retirees may want to switch from 40 hour week to only 3 days per week shift.
Cut pay to $ 17.00 per hour, no pension, some 401(k) contribution, some hospitalization benefit with 50 % contribution.
Easy, it's solved -- any other problems you want fixed?

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11TB(1167 comments)posted 3 years, 4 months ago

I don't have a problem with the post office downsizing to remain relevant. There will always be a need for a postal service. I feel bad that it will hit here at home likely.

I do take issue with people claiming Fedex and UPS will offer comparable service.

The cost is greater and the convenience less. If I receive a card or letter in the mail or need to send one, it will be waiting for me in my mailbox when I come home for a pretty nominal fee. UPS and Fedex would require me to be home and sign for such a small item and the cost of sending would be greater. They can not absorb the costs associated with a mandated postal service.

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12VINDYAK(1799 comments)posted 3 years, 4 months ago

I like youngstownsteves idea. I was going to suggest dropping Saturday and even Wednesday delivery, but steve's idea sound workable, although it will reduce the workforce. I think it is time to reduce the number of small post offices and even allow WalMart, Discount Drug Mart and other retail centers to get involved in mail services to customers.

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13TB(1167 comments)posted 3 years, 4 months ago

Customer service is not really a hallmark of any of those places VINDYAK

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14Majellan(2 comments)posted 3 years, 4 months ago

Some have said here that the postal service has not removed managers. That is patently wrong, they are currently removing 7500 management positions across the country. Many area offices already have half the staff they used to. So yes, the postal service does remove management positions. We have less rights than craft because we have no union.

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15Majellan(2 comments)posted 3 years, 4 months ago

Jim Jim we are a self sufficient company, you don't pay taxes to the postal service, the only thing paid to the postal service by you is stamps. Do some research, your just blabbing about things you know nothing about.

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