Postal relocation would not be worth it

Talk about it

The U.S. Postal Service plans a meeting here May 12 to discuss the possibility of consolidating processing operations to Fargo; the move would also relocate Jamestown employees as a result.

We feel the proposed savings for USPS of roughly $14,000 annually isn’t cost-effective enough to merit such a change.

The USPS is losing roughly $8 billion a year and is already close to its borrowing limit. Consolidating processing from Jamestown seems like a drop in an ocean.

The feds will probably point at the bottom figure, savings of about $14,000 due to increased efficiency of processing operations. Part of increasing processing in Fargo would result in three employees being relocated from Jamestown.

Because of postal workers’ union contracts, they cannot be let go due to a consolidation. They would have to be transferred to another facility.

In 2010 there were 35 similar consolidations across the country, which resulted in a net savings of nearly $100 million — or close to $3 million a location each year.

Jamestown is being studied with similar consolidations in the South Dakota cities of Aberdeen, Pierre and Mobridge for a total estimated savings of $1.5 million a year.

Aberdeen and Pierre would be moved to Huron, S.D., and Mobridge’s operations would be moved to Bismarck. Jamestown is the only one in the study that would move operations to Fargo.

Each of the three other locations would have to save $375,000 to justify their own worth. Again, Jamestown’s move to Fargo would save only $14,000.

The USPS also says service will not be affected by the move. But we’ve seen Interstate 94 during whiteout conditions. Processing could be more efficient in Fargo but it isn’t going to serve Jamestown residents best when weather conditions close off travel. Jamestown has been cut off from Fargo for days on end in recent winters. What would happen to mail processed in Fargo then?

We know the Postal Service is looking at ways to save money reduce the red ink. But $14,000 is very little money to make such a big change that relocates three employees to another city. We think the Postal Service should retain the processing operation here. And we hope residents turn out at the May 12 public meeting to say they agree.

(Editorials are the opinion of Jamestown Sun management and the newspaper’s editorial board)

Tags: post office, opinion, editorials