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Report: City postal center likely to close
Nov. 13, 2006, 5:05 PM
Nearly a year after the idea was first floated, it appears the Sioux City mail processing and distribution center will be consolidated with another U.S. Postal Service center.
In November 2005, members of the American Postal Workers Union Local 186 in Sioux City said the center and about 100 jobs could be moved to Sioux Falls. The three members of the Northwest Iowa congressional delegation undertook various actions to save the center, or at least bring more openness to the process, as USPS officials considered the Area Mail Processing feasibility study.
The lawmakers, U.S. Sens. Tom Harkin and Charles Grassley and Congressman Steve King, had requested the USPS inspector general conduct an independent review of the AMP, and that review took place from June to October. The legislators reported they had received the inspector general's review Monday, and that "there is sufficient evidence supporting consolidation of the Sioux City processing center," said Grassley.
The feasibility study showed moving processing from Sioux City to Sioux Falls for outgoing mail with zip codes 510-513 and incoming mail with zip codes 512-513 will save an estimated $873,000 in the first year, primarily from labor cost reductions of $592,000. Many of the jobs pay in the $50,000 range.
Although transportation costs will increase about $100,000 with the move, the AMP study holds that "service to most customers is projected to remain the same, and some overnight service standards may improve."
Grassley said he appreciated the inspector general looking into his concerns, and that "if the consolidation is allowed to continue forward, I'll be watching very closely that service is not denigrated for the people of Northwest Iowa."
The postal workers union has held two pickets in an attempt to keep the center, first in December 2005 when the issue first arose and then again on Oct. 26. Union president Jim Price said the Sioux City distribution plant located in Sioux City's Bridgeport industrial area is "one of the most modern and efficient of its kind."
P wrote on November 14, 2006 11:42 PM:"Malarky... moving the mail to Sioux Falls will do NOTHING but delay the mail for USPS customers of Sioux City. Earlier collection times and a degradation of local service will be the only outcome of this action. The USPS seems to be trying to drive customers to the internet/online bill paying with actions such as these. People of Sioux City... keep your reps informed of the quality of your mail service if this action is allowed to happen. Check out the PRC website for more information concerning the plan of the USPS www.prc.gov docket N2006-1."
K wrote on November 14, 2006 4:58 AM:"Makes sense to close it, the city has turned into a big retail outlet with most of the bigger companys the actually produced a product. The biggest customer the PO has in Sioux City probably is the city of Sioux city itself. Bestbuy, Target and ect all bill from else where, even our power bill comes out of Des Moines. If the city were to attract big business that actually manufactured in Sioux City there might be a need for it, but it's a big retail town that recycles money instead of having big companys produce something in Sioux City creating new money into the ecomony."
Alene wrote on November 13, 2006 11:21 PM:"Moving the mail sorting to Sioux Falls will mean people in the Sioux City area will have to "finish" their work day about half way through the day and everything after noon will probably wait to go out the next day. We at least have a chance to get our mail to the sorter as late as 8pm daily with the Sioux City facility operating and don't lose two hours each day transporting it back and forth. It is time the Big Dogs start listening to us instead of lining their pockets and telling us it is done for our own good. A big thanks for the great service that comes from the Sioux City Postal sorting facility."
