The Kent Delivery and Distribution Center for the U.S. Postal Service will remain open even as the agency closes six other facilities in the state.
Kent was one of 264 processing facilities nationwide studied for possible consolidation. The Postal Service announced Thursday that 223 centers will be consolidated, 35 will remain open and six are on hold for further internal study.
“The operational savings from closing the Kent facility were considered not enough to justify closing it at this time,” said Ernie Swanson, Seattle spokesman for the Postal Service, in an email.
The Postal Service will cut 300 jobs as it closes processing centers this summer or fall in Everett, Tacoma, Olympia, Wenatchee, Yakima and Pasco. Operations from Everett, Tacoma and Olympia will move to the Seattle facility. The Spokane center will handle work now done in Wenatchee, Yakima and Pasco.
“That does not mean they will be laid off – USPS will make every effort to assist them in finding other positions in the Postal Service,” Swanson said.
Last September, the Postal Service announced it would begin studying 252 out of 487 mail processing facilities for possible closure.
The 112 employees in Kent help sort mail for distribution to post offices in the South King County area. The Kent facility is along 64th Avenue South, just south of West Meeker Street.
Although the Kent center escaped closure this time, its future remains uncertain.
“If the Postal Service continues to experience declining mail volumes and therefore decreased revenue we may have to re-examine facilities that remain open,” Swanson said. “There is no timeline as to when that might happen.”
The nationwide network consolidation would reduce operating costs by $2.6 billion annually and result in a net savings of $2.1 billion, according to the Postal Service website.
“The U.S. Postal Service is in the midst of a financial crisis — and has been in this position for months — due to the combined effects of the economic recession, increased use of electronic communications, and an obligation to pre-fund Retiree Health Benefits,” according to the Postal Service website. “First-class mail volume has deteriorated, leading to significant revenue declines, and the obligation to pre-fund Retiree Health Benefits on an accelerated basis remains unresolved.”
The Postal Service has experienced a 25 percent decline in first-class mail volume since 2006, and receives no tax dollars for its operations, relying instead on the sale of postage, postal products and services, according to a Postal Service media release.
“The decision to consolidate mail processing facilities recognizes the urgent need to reduce the size of the national mail processing network to eliminate costly underutilized infrastructure,” said Chief Operating Officer Megan Brennan. “Consolidating operations is necessary if the Postal Service is to remain viable to provide mail service to the nation.”
Postal Service officials said they need to reduce operating costs by $20 billion by 2015 in order to return to profitability.
The consolidation of distribution centers is part of the Postal Service’s plan to eventually move first-class mail to a two-or three-day delivery standard rather than one to three days. That lower standard would allow the Postal Service to cut down on its number of distribution centers. Those service changes must be approved by the Postal Regulatory Commission.
According to the Associated Press, the Postal Service lost $5.1 billion in the past year. First-class mail volume has declined from 98 million in 2006 to 78 million per year.
Over the last several years, more people are using the Internet to pay bills and communicate through email rather than using the Postal Service.
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