Local mail processing would remain in Waterloo under USPS plan

WATERLOO — Local mail processing would remain at the Waterloo post office under a plan announced Wednesday by the United States Postal Service.

The decision — under review by the Postal Regulatory Commission — means mail being delivered from one address in Waterloo to another would not leave the region for processing.

A USPS news release states the plan would “retain certain local mail processing operations at the Waterloo postal facility.”

It follows an April proposal by the Postal Service to shift local mail processing operations to the Des Moines Processing and Distribution Center in 2025. Officials initially anticipated “staffing impacts” if any processing was moved to Des Moines. However, keeping local cancellation service in Waterloo would mean no changes to employee numbers in Waterloo.

“Our proposed operational strategy, which is currently under review by the PRC, will generate substantial savings for the Postal Service,” Postmaster General Louis DeJoy said in the news release. “This strategy provides a solution that will ensure our organization can cover the cost of local originating mail processing operations in the Waterloo facility.

“Moreover, our Delivering for America plan is channeling up to $6.6 million into upgrading the Waterloo facility. This investment goes beyond just enhancing the work environment for our employees. It’s about equipping the facility with the necessary technology and resources to deliver top notch service to the local community for the foreseeable future.”

U.S. Rep. Ashley Hinson, R-Iowa, said in a statement the retention of local mail processing in Waterloo is a partial victory.

“I personally advocated to the postmaster general to prevent the outsourcing of all mail processing operations in Waterloo and to ensure there would be no job losses. While their decision to retain some mail processing in Waterloo and not cut any postal jobs is a positive step, this is not the end of the conversation. I will continue working to protect jobs and ensure reliable postal service for all Iowans,” Hinson said in a statement.

The previously announced investment of up to $6.6 million in the Waterloo facility at 300 Sycamore St. would include up to $2.7 million for modernization efforts and deferred maintenance. Funds will be used for workplace amenities for employees such as new lighting and renovated bathrooms and breakrooms. To help improve delivery services, $3.9 million would be spent to integrate a robotic package sorting system into the facility.

The release states the Postal Service review still “recommends converting the facility to a local processing center. Such facilities are the middleman between regional processing and distribution centers and sorting and delivery centers. Sorting and delivery centers will aggregate mail for processing at larger, centrally located sites for delivery to a larger geographic area.”

The Waterloo facility also will see changes designed to boost services. Once the Waterloo facility becomes an LPC, it would handle package mailing and shipping, letters, and flats. The LPC is also expected to offer express services and accept bulk and permit mail. The changes will not impact business mail entry, post office, station, or branch retail services.

The Postal Service is focusing on enhancing package processing and shipping capacity at its Waterloo facility. This could lead to increased plant activity and the need for additional staff in the future.

The release states that on Aug. 22, the Postal Service began the regulatory process with the PRC for operational improvements to strengthen service reliability, increase cost efficiency, and boost productivity. The changes, which would take effect after the election and peak season over the holidays, “will allow certain local originating mail processing operations to remain in Waterloo due to significant savings.”

It’s part of a proposed strategy to increase efficiency, improve service and save USPS $3 billion per year nationwide. The savings would enable the Postal Service to absorb the cost of continuing to provide local cancellation service in Waterloo.