End of Summer News and Update Greater New York Postal Customer Council – October 21, 2009 Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

2 Deep In The Hole For 2010 USPS ends the fiscal year at over $7 billion In debt Borrowing power depleted Congressional Relief Still 3.5 billion in the red Some borrowing power restored New Mailing Services Prices – May 11, 2009

3 Volume Continues Dropping 2007 equaled 208 billion pieces of mail 2009 is ending at 175 billion pieces 2010 projected at 165 billion pieces Already exceeded drop off predicted by Presidential study of 2003 by 6 billion pieces Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

4 Good news? Maybe CPI index is standing at minus 0.3 percent No price increase in calendar 2010 for Market Dominant products January increase for Competitive products Gambling for loyalty and success Pricing prospects Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

5 Postal Closings and Consolidations 3,000 post office review whittled down to 370 offices that may close. 59 Mail Processing Facilities in various stages of review and/or consolidation Almost all Air Mail Facilities merged into District Operations Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

6 Voluntary Early Retirement and limited buyout being used. Employee complement reduced to 630,000 from more than 800,000 Executive and management salaries frozen Union negotiations for concessions Personnel Reductions Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

7 Five Day Delivery Moving Forward Saturday home and business delivery would be eliminated. Post offices will stay open for window and box services Post office box mail would get Saturday delivery Possible for Oct. 2010, likely for early 2011 Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

8 Expand Surface Network to three tiers of transportation, processing and delivery. Eliminate outdated and cumbersome BMC network Improved and more direct transportation Begin using tandem trailers Remove redundant and underused existing transportation Network Distribution Centers Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

9 Faster and more precise system for sorting flat- sized mail to carriers 100 machines purchased Implementation nationwide, expanded to 42 sites form 32. Dulles VA up and running, eleven in process. Flats Sorting System (FSS) Implementation Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

10 MTAC – Mailer’s Technical Advisory Committee Workgroups entertaining postal and industry suggestions for making mail growth easier Over 100 recommendations reviewed and evaluated Changes recommended in order of priority for value Workgroups at MTAC For Growing Volume Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

11 Partnering With Other Agencies Fedex transporting and dropping large volumes of express and priority mail United Parcel Service providing air transportation to 99 paired cities to get around airline deficiencies Last mile delivery by USPS to make sure mail integrity protected. Working with instead of against each other Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

12 Flexible Work Force Work with labor organizations to develop a flexible work force Meet needs of mail arrival ebbs and peaks to minimize employee downtime 5-Day delivery eliminated many “floater” positions for the 6 th day when the regular carrier is off Consolidations provide more concentrated workforce where volume is heaviest with latest technology Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

There is much work to be done yet Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ

The End – Questions Eddie Mayhew’s Classification Station P. O. Box 289 Lake Hiawatha NJ