{"id":9695,"date":"2015-01-10T09:43:41","date_gmt":"2015-01-10T14:43:41","guid":{"rendered":"http:\/\/postalemployeenetwork.com\/news\/?p=9695"},"modified":"2015-01-10T09:43:41","modified_gmt":"2015-01-10T14:43:41","slug":"oig-postal-service-customers-would-suffer-if-mail-processing-were-eliminated","status":"publish","type":"post","link":"https:\/\/postalemployeenetwork.com\/news\/2015\/01\/10\/oig-postal-service-customers-would-suffer-if-mail-processing-were-eliminated\/","title":{"rendered":"OIG: Postal Service, Customers Would Suffer if Mail Processing Were Eliminated"},"content":{"rendered":"<p>APWU &#8211; 01.08.15<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/www.apwu.org\/sites\/apwu\/files\/news-attachments\/Mail%20processing%20facility.jpg\" alt=\"\" \/><\/p>\n<p>A little-noticed<span class=\"Apple-converted-space\">\u00a0<\/span><a href=\"https:\/\/www.uspsoig.gov\/sites\/default\/files\/document-library-files\/2014\/rarc-wp-15-002.pdf\" target=\"_blank\">OIG report<\/a><span class=\"Apple-converted-space\">\u00a0<\/span>bolsters the union\u2019s position that mail processing plants are crucial to Postal Service operations and should<span class=\"Apple-converted-space\">\u00a0<\/span><em>not<\/em><span class=\"Apple-converted-space\">\u00a0<\/span>be privatized.<\/p>\n<p>Many Americans view the Postal Service as having only two components: those who deliver mail and those who assist you at the window, the Dec. 8 report notes. \u00a0Some have argued that focusing on these two sectors \u2013 and allowing private companies to take over mail sortation and transportation \u2013 would improve efficiency and cut costs.<\/p>\n<p>The OIG report, \u201c<em>The First and Last Mile Strategy: A Critical Assessment<\/em>,\u201d demonstrates that these claims are false. \u201cThe Postal Service and the mailing public would suffer if the Postal Service ceased its mail processing operations,\u201d the study finds.<\/p>\n<p>\u201cThe mail processing activities of the Postal Service play a vital role in ensuring the productive and allocative efficiency of the postal sector, even in the absence of economies of scale in mail processing,\u201d wrote John Panzar, the study\u2019s author, who is a professor of economics at the University of Auckland. Panzar developed a theoretical model that shows that if the Postal Service completely eliminates the mail processing of letters and flats, there would be an overall loss in efficiency.<\/p>\n<p>\u201cThe likely result of the Postal Service ending its mail processing activities would be lower profits for the Postal Service and higher prices for the mailing public. Competitive mail processors are the only likely beneficiaries,\u201d Panzar concluded.<\/p>\n<p>While the report focuses on processing plants, Panzar notes that it includes any transportation related to the \u201cmiddle mile.\u201d<\/p>\n<p class=\"last\">\u201dThe OIG report proves what the APWU has been saying: Mail processing and transportation are essential to a vibrant, productive Postal Service,\u201d said APWU President Mark Dimondstein. \u201cThis is another powerful argument against closing or consolidating 82 mail processing facilities and subcontracting transportation,\u201d he said.<\/p>\n<p>&#8211; See more at: http:\/\/www.apwu.org\/news\/web-news-article\/oig-postal-service-customers-would-suffer-if-mail-processing-were-eliminated#sthash.XZuakqEn.dpuf<\/p>\n","protected":false},"excerpt":{"rendered":"<p>APWU &#8211; 01.08.15 A little-noticed\u00a0OIG report\u00a0bolsters the union\u2019s position that mail processing plants are crucial to Postal Service operations and should\u00a0not\u00a0be privatized. Many Americans view the Postal Service as having only two components: those who deliver mail and those who assist you at the window, the Dec. 8 report notes. \u00a0Some have argued that focusing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9696,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-9695","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-apwu-news","last_archivepost"],"_links":{"self":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/9695","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/comments?post=9695"}],"version-history":[{"count":1,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/9695\/revisions"}],"predecessor-version":[{"id":9697,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/posts\/9695\/revisions\/9697"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/media\/9696"}],"wp:attachment":[{"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/media?parent=9695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/categories?post=9695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/postalemployeenetwork.com\/news\/wp-json\/wp\/v2\/tags?post=9695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}