Local post office employees can breathe a sigh of relief that Malibu is not on the list of 30 Los Angeles federal post offices under review for closure, for now.
By Megan Farmer / Special to The Malibu Times
As the United States Postal Service reviews 30 Los Angeles offices for possible closure in its fight to stay financially afloat, it appears the Malibu branches have caught a lucky break and remain safe, for now.
U.S. Postal spokeswoman Eva Jackson confirmed that the three U.S. Post Offices located in Malibu and their 47 employees are not under review and should not fear closure or relocation at this time.
The information comes on the heels of significant fiscal turmoil for the USPS, which recently called for “radical changes” in hopes of keeping the agency afloat. Postmaster General Patrick Donahoe testified on Capitol Hill that the USPS stands to lose about $10 billion this fiscal year and will default on a $5.5 billion payment to the U.S. Treasury at the end of the month if immediate action is not taken by Congress.
The economic woes of the USPS come as no surprise to Nereida Heath, owner of Malibu Business and Shipping Center, who worked for the U.S. Postal Service for 25 years in postal inspection and internal affairs.
“One of my responsibilities at the USPS was to help figure out budgetary problems,” Heath said. “When I left seven years ago, the postal service was averaging a surplus of about five million to six million dollars a year. Once they decided to do the flat rate shipping, and pay out pensions and benefits in advance, there was no way they could continue without taking severe financial hits.”
Heath added she was “shocked” that none of the post offices in Malibu were under review at this time, noting the expensive cost of doing business in the city.
“It’s hard to believe that the postal service has enough income for the area that they cover here,” she said. “I believe the review of Malibu offices is imminent, it would be a smarter move for the postal service to combine locations and cut overhead expenses.”
The USPS is attempting to get back on track and has introduced new legislation to Congress in hopes of reducing costs and staying afloat, Richard Maher, U.S. Postal Service spokesman for Los Angeles County, told The Malibu Times. The latest recommendation calls for a 90-day extension of the $5.5 billion mandatory benefit payment that the agency has stated it will not make on its due date, Sept. 30.
Maher said the most detrimental factor the U.S. Postal Service is facing is regulation from Congress that requires the agency to prepay future retiree benefits. Since legislation was passed in 2006, every employee’s retirement benefits are paid years in advance, before the employee actually retires.
“Without this requirement, the U.S. Postal Service would have turned a profit in the last four years, even through the recession and all the technological advances that have changed the way people communicate and conduct business,” Maher said.
The USPS requested Congress to eliminate this requirement entirely.
The agency also called for a change in the unionized employee contracts they issue. Currently, the employees have a clause forbidding any layoffs, an issue, Maher notes, that no other business in the U.S. faces. The USPS estimates it will need to reduce its workforce by 220,000 people by 2015 to have a chance at survival.
The final recommendation the agency calls for is a five-day workweek, eliminating Saturday deliveries, a suggestion that Heath said has been in discussion since her time at the agency more than 20 years ago.
As the postal service struggles nationwide to reduce costs, many post offices, including the 30 under review in Los Angeles, face the risk of closure. The criteria considered for closure by the USPS includes the revenue generated at each post office and its proximity to other U.S. postal locations, as well as its location relative to other delivery services such as FedEx or UPS. This criteria could influence a review of Malibu offices in the future, with three post offices serving 13,000 people and additional private services available in the area, such as Heath’s Business and Shipping Center.
“The smartest move for the postal service really is to consolidate in Malibu and cut their costs down, they need to function more like a private business and stay within their budget,” Heath said. “I only have one business here and I struggle, I know how hard it can be.”
Maher said he believes that Los Angeles workers who are in offices that close will likely be moved to other locations rather than be facing layoffs.
“The last few years we’ve been able to prepare somewhat for this through attrition and have not replaced workers who retire or quit, giving us some safety,” Maher said.
If Congress provides the USPS with the flexibility to act more like a business, Maher believes the organization will have a bright future.
“The U.S. Postal Service is very important to the nation. There will always be a need for the service we provide, delivering hard copies and packages, and we go the final mile,” he said. “The postal service will deliver to locations that our competitors will not.”
The Malibu Postmaster General did not provide a statement or return calls to The Malibu Times.