Welcome

New Castle, PA P&DF

Area Mail Processing (AMP) Study

July 15, 2009

Slide 2

Agenda

• AMP Video

• PowerPoint Presentation

• Question & Answer Period

• Close

Area Mail Processing (AMP)Area Mail Processing (AMP)

Slide 3

AMP Video

AMP Video Clip

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• AMP (Area Mail Processing)Consolidation of all outgoing or all incoming mail processing operations from one or more facilities into other automated processing facilities for the purpose of improving operational efficiency and/or service.

• Effective process used for decades to help us adjust to changes in the environment

Area Mail Processing (AMP)Area Mail Processing (AMP)

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The Need for ChangeThe Need for Change

• Postal Service faces “Acute Financial Crisis”

• Rise in Electronic Communications

• Economic Recession

• Change in Mail Mix – Increase in Work Sharing and Drop Shipments– Decrease in First-Class Mail Volume

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The Need for ChangeThe Need for Change

35,000,000

40,000,000

45,000,000

50,000,000

55,000,000

60,000,000

FY 199

8

FY 199

9

FY 200

0

FY 200

1

FY 200

2

FY 200

3

FY2004

FY2005

FY2006

FY2007

FY2008

To

tal

Pie

ce

Vo

lum

e (

in '0

00

s)

First-Class Single Piece

~ 29%declinesince 1998

National Trend

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Benefits of Consolidation

• Puts the Right People in the Right Place with the Right Resources

• Utilizes Equipment Efficiently • Reduces Cost• Does Not Affect Customer Services• Supports Our Network Plan

Positive OutcomesPositive Outcomes

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Service

• Service Standards for First-Class Mail– No Changes to Service

• Customer & Delivery Services– Delivery Services – Customer Services

• Retail Hours• Business Mail Acceptance• Drop Shipment

Common ConcernsCommon Concerns

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• Jobs– Impacted Jobs

• Community Identity– Local Postmark Remains Available– Meter and Permit Indicia Do Not Change

Common ConcernsCommon Concerns

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New Castle to PittsburghNew Castle to Pittsburgh

Travel Distance 46 miles

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Benefits from consolidation

• Approximately $1.3 million annual savings

• Maximize resources

• Reduce excess capacity

• Eliminate duplicate operations

• Focus on remaining operations

New Castle to PittsburghNew Castle to Pittsburgh

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• Delivery times are not affected

• Retail services are not affected

• Meter and permit indicia do not change

• Same hours of business mail acceptance

• Drop shipments at New Castle continue

New Castle to PittsburghNew Castle to Pittsburgh

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Potential employee impact

• Projected net decrease of 17 positions

• Reassignments will be made in accordance with union collective bargaining agreements

New Castle to PittsburghNew Castle to Pittsburgh

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• Reduces Costs• Improves Efficiency • Puts the Right People in the Right Place

with the Right Resources• Transparent to Customer Services• Supports our Strategic Plan

SummarySummary

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QUESTIONS and COMMENTS

Please come to the microphone and state your:

NAME and BUSINESS AFFILIATION

Question & Answer PeriodQuestion & Answer Period

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Mail additional comments to:

CONSUMER AFFAIRS MANAGERWESTERN PENNSYLVANIA DISTRICT1001 CALIFORNIA AVEPITTSBURGH PA 15290-9631

Must be postmarked by July 30, 2009

Question & Answer PeriodQuestion & Answer Period