Study looks at impact of Youngstown postal center closing

YOUNGSTOWN, Ohio - As the proposed shutdown of Youngstown's postal processing center draws closer, local postal unions are raising new concerns over the economic impact of the closing.
Under phase two of the United States postal services downsizing plan, the Youngstown sorting center would close in July of 2015. At a news conference on Friday, postal union leaders released an economic and community impact study completed by the Fiscal Policy Institute. In summary, the study found that the economic impact on the Youngstown area will be devastating.
While the postal service projects that the closing and moving of all mail processing to Cleveland would save an estimated $7.5 million, the institute study looked at the total impact of losing 151 good paying jobs, plus the associated buying power and taxes.
According to the study, "Total labor incomes associated with these jobs are $15.9 million, twice the annual savings projected as a result of the consolidation."
The unions continue to maintain that the real problem is a 2006 mandate by Congress for the postal service to pre-fund 75 years of health care benefits for postal retirees.
"The true problem is more than evident, it's the $5.6 billion per year payment to fund future retiree health benefits," said Henry Gomez, President of Letter Carriers Local 385.
A statement from the Postal Service said due to decreases in mail volume, it's system has excess capacity and "Making these changes will enhance the viability of the organization and it's ability to continue to provide service in the future."
The unions are asking Congress to pass a moratorium on plant closings.
"For at least a year, so that we can make sure that what they're doing actually comes out to save them money and not destroy the postal service in the process," said James Varner of the American Postal Workers Union.
Varner believes that the closing of 82 more processing plants will delay the mail, and that the continued effort to do away with six day delivery will only drive business away from the postal service.