A mail-processing facility in Tumwater is among as many as 252 plants nationwide that could close early next year as the U.S. Postal Service looks for ways to cut costs.
Before it takes that step, the Postal Service will study whether the Olympia-area plant should be consolidated with mail operations in Seattle. Mail operations in Everett and Tacoma also are under consideration to move to Seattle, and sites in Wenatchee, Pasco and Yakima could move to Spokane, according to Postal Service data and spokesman Ernie Swanson.
The study is expected to be completed in early 2012.
If the sites close, about 850 people statewide and as many as 35,000 nationwide could lose their jobs. There are 487 mail-processing sites nationwide.
The nearly 70,000-square-foot Olympia Processing and Distribution Facility, which is near Olympia Regional Airport, employs 118 people, Swanson said. It handles mail for all ZIP codes that begin with 985, which include Thurston, Lewis, Mason and Grays Harbor counties and parts of Pacific County, he said.
If the study determines a need to consolidate, the Postal Service will hold a public meeting to explain the proposed changes, as well as solicit feedback before a final decision is made, postal officials said in a news release.
Olympia Postmaster Ryan Moody could not be reached Thursday; Fred Porter, who retired from the Postal Service in 2003 after a 23-year career, said the postal service has been planning the Seattle and Spokane mail consolidation for years.
“This grand plan has been in effect since 2000,” Porter said.
The first sign of the Postal Service’s consolidation plan occurred when some Olympia mail was sent to Tacoma for processing a few years ago, Porter said. That resulted in Olympia losing its postmark, one of the few state capitals not to have its own postmark.
A letter mailed within Thurston County now carries a “Tacoma-Olympia” postmark.
The Postal Service lost $8.5 billion last year and faces more red ink this year as the Internet siphons off the lucrative first-class mail and the stagnant economy holds down the growth of advertising mail.
The agency also said it plans to reduce delivery standards for first-class mail. Such mail now is supposed to be delivered in one to three days, depending on how far it has to go. That will be changed to two to three days, meaning mailers could no longer expect next-day delivery in their area.
Officials said that could affect commercial mailers but that individual customers likely would not notice the change. They promised to work with businesses to help solve any problems the change might cause.
The closings and service changes could save the post office as much as $3 billion annually and are part of an effort to reduce annual costs by $6.5 billion.
Other savings are being sought through requests that Congress allow the post office to eliminate mail delivery on Saturdays and change or eliminate an annual $5.5 billion payment the post office is required to make into a fund to cover future retiree medical benefits.
Last year, the Postal Service had revenue of $67 billion and expenses of $75 billion.
The Associated Press contributed to this report.
Rolf Boone: 360-754-5403
rboone@theolympian.com
www.theolympian.com/bizblog
