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Postal Workers Rally Against Upcoming Closures, Service Cuts

Dennis Culver (BCN)
Friday November 14, 2014 - 12:50:00 PM

United States Postal Service workers in the Bay Area are speaking out today against looming cutbacks, processing center closings and cuts in service. 

Postal workers in San Francisco, Oakland and San Jose are holding rallies today to protest the Jan. 5 changes. 

Alan Menjivar, a postal worker for 31 years and a lead organizer for today's American Postal Workers Union rally in San Francisco, said the proposed cutbacks, the closure of 82 processing centers nationwide and the elimination of overnight delivery service will be devastating for workers and for customers who rely on getting their mail. 

"By cutting back, we are going to lose 15,000 jobs," Menjivar said. "We are sending a message to the (USPS) Board of Governors we are not happy with what's going on." 

About 100 people are expected at the San Francisco rally, which is going on from 11 a.m. to 1 p.m. at Fox Plaza at 1390 Market St. 

An Oakland protest is also planned from 11 a.m. to 1 p.m. at the processing and distribution center at 1675 Seventh St.  

Protestors will rally in San Jose from 1 p.m. to 4 p.m. at City Hall at 200 E. Santa Clara St. 

Gus Ruiz, a spokesman for the USPS, said the proposed cutbacks are necessary if the agency wants to remain viable in the future. 

"We are making the necessary decisions to stay in business," Ruiz said. "We need to adapt to meet changing needs." 

Ruiz said the USPS is positioning itself to better respond to the growth in parcel deliveries that come from areas like online shopping. 

He said the agency doesn't need as many processing centers due to overall decreases in mail volume. 

The postal workers union has argued the closing of the centers and lower service standards such as delayed delivery times for mail will create a domino effect that will degrade the service. 

The USPS today announced a $5.5 billion loss in the 2014 fiscal year despite a $569 million increase in operating revenue. 

The net loss is largely due to the prefunding of the Postal Service Retiree Health Benefit Fund to the tune of $5.7 billion, according to a USPS release. 

The retiree health benefit prefunding is required by law. 

The USPS has seen an annual net loss for eight consecutive years. 

"The legally mandated $5.7 billion requirement for the Postal Service Retiree Health Benefit Fund contributed to our continuing losses," USPS Chief Financial Officer and Executive Vice President Joseph Corbett said in the release. "Due to lack of sufficient cash, we were forced to default on the $5.7 billion prepayment, underscoring the need for legislative change." 

The USPS Board of Governors also announced today the Feb. 1 retirement of Postmaster General and CEO Patrick Donahoe. 

Megan Brennan, the current chief operating officer will succeed Donahoe as the 74th Postmaster General and CEO.