Welcome

Staten Island, NY P&DF

Area Mail Processing (AMP) Study

April 29, 2009

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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 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

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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Proposed AFCS Postmark for the Triboro District

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Cancellations Compared to Same Period Last Year

• Cancellations at the Queens Processing and Distribution Plant have declined 11% when compared to the same period last year.

• Cancellations at the Staten Island Processing and Distribution Plant have declined 15.4% when compared to the same period last year

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Staten Island to BrooklynStaten Island to Brooklyn

Travel Distance 16 miles

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Benefits from consolidation

• Approximately $1.9 million annual savings

• Maximize resources

• Reduce excess capacity

• Eliminate duplicate operations

• Focus on remaining operations

Staten Island to BrooklynStaten Island to Brooklyn

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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 Staten Island continue

Staten Island to BrooklynStaten Island to Brooklyn

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Potential employee impact

• Projected net decrease of 26 positions

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

Staten Island to BrooklynStaten Island to Brooklyn

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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 MANAGER

1050 FORBELL ST RM 2015-O

BROOKLYN, NY 11256-9631

Must be postmarked no later than May 14, 2009

Question & Answer PeriodQuestion & Answer Period