USPS Phase 2 Network Rationalization
Frequently Asked Questions
- How much mail will be delivered overnight once Phase 2 is implemented?
Current estimates indicate approximately 20% of the First-Class Mail volume is expected to be delivered overnight, more than 35% is expected to be delivered in 2 days and about 44% delivered in 3 days.
- Will Phase 2 modify the service standards further?
Yes, Phase 2 will affect the existing service standards for First-Class Mail and Periodicals Mail. The changes may be seen by comparing Tables 1 and 3 with Tables 2 and 4 at the following Federal Register notice link: http://www.gpo.gov/fdsys/pkg/FR-2014-01-24/pdf/2014-01382.pdf.
- The Postal Service is consolidating its network. How will this impact mail and package delivery?
The consolidation of the processing network will not impact the delivery process.
- Won’t this slow down service?
Overall, the time it takes First-Class Mail to reach its destination will increase slightly from an overall average of 2.14 days to an overall average of 2.25 days.
- Will there be a price increase?
There is no price increase associated with this change. The Postal Service is taking these steps to stabilize the costs associated with processing and transporting the mail.
- How many employees and facilities will be impacted?
There are up to 82 facilities that will undergo consolidation activities. Based upon the studies that have been performed, the projected number of impacted employees is about 15,000.
- Will there be layoffs and plant closures? If so, when and how many?
With all other past consolidations, we have been able to place impacted employees in other available positions without resorting to layoffs. Every effort will be made to reassign impacted employees when implementing Phase 2 of the current consolidation plan.
- Why didn’t the Postal Service continue the network rationalization plan last year?
We wanted to ensure efficient operations of our network prior to moving to Phase 2.
- How much will this effort save the Postal Service?
Phase 2 is projected to save the Postal Service over $3.5 billion in the next five years or approximately $750 million per year in savings.
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