Postal Service pauses consolidation plans after outcry

U.S. Postmaster General Louis DeJoy hit pause this week on plans to consolidate processing centers, halting a proposal to move Missoula’s distribution center to Spokane.

The move follows multiple requests by elected officials to stop the change after the Postal Service announced the closure of distribution centers across the country.

In a letter to U.S. Sen. Gary Peters, D-Mich., DeJoy said he would pause consolidating any processing facility operations until at least January 2025. As a result, the Postal Service will not achieve projected cost savings of between $133 and $177 million, he said.

“We do not see these planned actions as at all consequential to service; rather, they are important elements of achieving a network that can provide greater service reliability in a cost-effective manner,” DeJoy wrote in the letter. 

Montana Sens. Steve Daines, a Republican, and Jon Tester, a Democrat, were among 26 senators to write a letter to DeJoy on May 8, requesting the Postal Service to halt all planned changes. The letter was spearheaded by Peters, who DeJoy responded to.

“We call on USPS to pause all changes, pending a full study of this plan by its regulator,” the letter reads. “While USPS claims these changes overall will improve service while reducing costs, there is evidence to the contrary in locations where USPS has implemented changes so far. USPS must stop implementation, restore service in those areas where changes were implemented, and fully understand the nationwide effects of its plan on service and communities.”

In late April, the agency indicated it planned to trim operations at the Missoula processing and distribution center, moving some functions to Spokane. In a statement, the service said that the Missoula facility would become a local processing center. 

A processing and distribution center is a hub that collects incoming mail from Post Offices and collection boxes and distributes it in a specific service area. Postal Service officials said that the move to Spokane would improve service and reduce costs. 

Tester announced last week his intention to sponsor legislation to preserve the Missoula operation. The Protecting Access to Rural Carriers (PARCEL) Act would prohibit the Postal Service from closing or consolidating processing centers across the country, according to the three-term Democrat’s office.

Through the legislation, the Postal service would be barred from closing, consolidating, downgrading or taking any similar action that would result in processing operations being relocated out of state or the degradation of local mail delivery without public approval.

If it were to move forward with a plan, the agency would have to complete a review of the anticipated impact of geographical considerations and publish a public input summary. 

“I’ll continue to push for a permanent fix like my PARCEL Act to make sure USPS won’t be able to ever strip rural America of reliable service without public approval and legitimate justification,” Tester said in a statement.

The letter sent to DeJoy by the senators offered similar suggestions. 

“In particular, we urge the Postal Service to request a comprehensive advisory opinion from the Postal Regulatory Commission, which would provide a robust and public process to study the impacts of these changes,” the senators wrote. 

In his response, DeJoy maintained that the planned consolidations were not going to be consequential to service at all. He argued that they are important elements to achieve a stronger network and newer facilities. 

“I acknowledge that we have not been able to convince Congress of this, even though these efforts will both improve the facilities and facilitate the significant cost reductions that we absolutely must achieve to have any hope of financial sustainability,” DeJoy wrote in the letter. 

Reporter Kate Heston can be reached at kheston@dailyinterlake.com or 758-4459.