Printer-Friendly Page
Review supports closing local mail center
Nov. 14, 2006
It appears the Sioux City mail processing/distribution center will be consolidated with another U.S. Postal Service center.
Last December members of the American Postal Workers Union Local 186 in Sioux City related that the center and about 100 jobs could be moved to Sioux Falls. The three members of the Northwest Iowa congressional delegation have undertaken various actions to keep the center, or at least bring more openness to the process, as postal officials considered the Area Mail Processing feasibility study.
U.S. Sens. Tom Harkin and Charles Grassley and Congressman Steve King requested the postal service inspector general conduct review the AMP, and that review took place from June to October.
The legislators reported Monday the inspector general has said "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 annually 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." The inspector general verified key AMP data against postal service records and didn't see reason to dispute the study's findings, Grassley said.
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."
Harkin said he's concerned mail service in the area could "suffer" if the consolidation to Sioux Falls takes place. He said "until it is demonstrated that consolidation doesn't translate into substandard mail service, I will continue to work to keep the Sioux City facility open and operating."
Harkin said the General Accounting Office is looking at the consolidation process and won't complete that review until May. "In the meantime," Harkin said, "I've included language in a Senate bill that will stop any closure of the Sioux City facility until that GAO report is completed. I will fight to ensure that this language is included in the final spending packages passed by Congress during the lame duck session." After taking off five weeks for the midterm elections, Congress began work to finish up 2006 business Monday.
King said the inspector general's audit dated Nov. 9 found "that a possible consolidation would result in operational efficiency and provide a number of increases in the standard of mail service that residents of Northwest Iowa currently have." While the decision rests with USPS, King said he "still questions underlying aspects of the study."
The postal workers union has picketed twice 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."
Richard Watkins, spokesman with the U.S. Postal Service's Hawkeye District, said recently the proposed change is simply about operating the most efficiently nationally.
Watkins said traditionally the volume of first-class mail -- the Postal Service's most profitable product -- went up every year. But he said several years ago the Postal Service saw a decline, and that has turned into a trend. He said Postal Service's costs continue to rise, so the not-for-profit agency must do something to try to keep from turning all those costs over to the customers.
"If we continue with the status quo -- that is, process mail the way we have for the last 20-30 years, we would be out of business," Watkins said.
The U.S. Postal Service has 180,000 employees, 675 mail processing facilities, 214,000 vehicles and operates with a budget of $25 billion annually.
Bret Hayworth can be reached at (712) 293-4203 or at brethayworth@siouxcityjournal.com
