Postal Service Plans Early Retirements, Layoffs

WASHINGTON (AP) - Battered by the economy, the post office is
offering early retirement to 150,000 workers, cutting management
and closing offices, the agency said Friday.

The Postal Service lost $2.8 billion last year and is facing
even larger losses this year, despite a rate increase - to 44 cents
for first-class mail - scheduled to take effect May 11.

The agency said it will reduce management staff nationwide by 15
percent, with more than 1,400 processing, supervisor and management
posts at 400 facilities being eliminated.

And another 150,000 postal workers will be offered early

The agency also made early retirement offers last year but
unions discouraged their members from accepting the offers and they
were not widely used. The post office did not say if the new
proposal would include financial incentives.

The American Postal Workers Union issued a statement Friday
saying: "Retirement is a personal matter, and the union defers to
the decisions of employees who meet the qualifications."

However, the union said it continues to challenge the Postal
Service's authority to offer voluntary early retirement without
including severance pay.

The 80 district across the country will be reduced by six with
the closings in Lake Mary, Fl.; North Reading, Mass.; Manchester,
N.H.; Edison, N.J.; Erie, Pa.; and Spokane, Wash.

District offices handle administrative functions and officials
said the closing should not affect local mail delivery. The
closings were expected to take about five months.

The first quarter of the fiscal year - October through December
- is usually the post office's busiest, but it still posted a loss
of $384 million for the period.

Officials said the economic recession contributed to a 5.2
billion piece mail volume decline compared to the same period last
year. If there is no economic recovery, the Postal Service projects
volume for the year will be down by 12 billion to 15 billion pieces
of mail.

The post office said that over the past year it has cut 50
million work hours, stopped construction of new postal facilities;
froze salaries for postal executives, began selling unused
facilities and cut post office hours.

In addition, it is negotiating an agreement with the National
Association of Letter Carriers to adjust carrier routes to reflect
diminished volume.

Postmaster General John Potter has even asked Congress to
consider allowing the agency to cut mail delivery back to five
days-a-week to save money.

The post office does not receive a taxpayer subsidy for its
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