Future of postal facility still uncertain

Central Virginia post offices appear safe from the accountant’s ax, but U.S. Postal Service officials are still studying the fate of a mail distribution facility in Albemarle County.

The study began at the Airport Road plant Aug. 4 to determine if the center’s operations could shift to a new postal plant in Sandstone.

The local facility has 181 employees.

The postal service, reeling from a bad economy and competition from package services, lost $2.4 billion in the second quarter of 2009. It’s on track to be $7 billion in the red by the end of this month, and that’s led the service to consider closing both retail post offices and some distribution and processing facilities.

“That Charlottesville study is continuing and we expect it to be completed in a few weeks,” said Cathy Boule, postal service spokeswoman. “We expect to have some news later this month.”

The Sandstone mail distribution center, set to open next month, features upgrades that should increase efficiency and lower costs, officials said.

Duties that were once done by hand will be automated.

The facility will include a Flat Sequencing System, a football-field sized sorting machine for flat pieces of mail at a rate of 16,500 pieces per hour, according to the postal service Web site.

The postal service this week narrowed the number of retail post offices across the nation that face possible closure to 413. No Central Virginia offices had been listed for closure.

The postal service is trying to cut $6 billion a year, including slashing personnel costs by the equivalent of 57,000 jobs. Other actions to save money include building no new facilities, hiring and salary freezes and closing or selling postal facilities across the country.

Nearly 700 post offices were reviewed for closure and more than half were taken off the list. Officials said the pared-down list “should not be regarded as final” and that an updated list will be posted in early October.

The postal service has about 37,000 retail outlets across the country, and Postmaster General John Potter has said he wants to keep as many open as possible.

Recently the postal service negotiated an agreement with two employee unions to offer financial incentives to retire or resign before the end of the fiscal year.

The agreements affect employees in processing plants such as Albemarle’s but do not apply to mail carriers, postal officials said.

About 30,000 employees, including some in the local facility, are eligible. The plan could save the postal service as much as $500 million next year.

Media General News Service contributed to this story.