Welcome

Wilkes-Barre, PA P&DF

Area Mail Processing (AMP) Study

April 7, 2009

Slide 2

Agenda

• AMP Video

• PowerPoint Presentation

• Question & Answer Period

• Close

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

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AMP Video

AMP Video Clip

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• AMP (Area Mail Processing)Consolidation of all outgoing and/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

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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 changes

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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Wilkes-Barre to Scranton and Lehigh ValleyWilkes-Barre to Scranton and Lehigh Valley

Current Mail Processing

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Wilkes-Barre to Scranton and Lehigh ValleyWilkes-Barre to Scranton and Lehigh Valley

Proposed Mail Processing

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Benefits from consolidation

• Approximately $3.9 million in annual savings

• Maximize resources

• Reduce excess capacity

• Eliminate duplicate operations

• Focus on remaining operations

Wilkes-Barre to Scranton and Lehigh ValleyWilkes-Barre to Scranton and Lehigh Valley

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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

• Mailers who drop ship to DSCF 186 can expect changes if the AMP is approved

Wilkes-Barre to Scranton and Lehigh ValleyWilkes-Barre to Scranton and Lehigh Valley

Slide 14

Potential employee impact

• Projected net decrease of 44 positions

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

Wilkes-Barre to Scranton and Lehigh ValleyWilkes-Barre to Scranton and Lehigh Valley

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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

Slide 17

Mail additional comments to:

CONSUMER AFFAIRS MANAGER

1425 CROOKED HILL RD

HARRISBURG, PA 17107-9631

Must be postmarked no later than April 24, 2009

Question & Answer PeriodQuestion & Answer Period