Though the U.S. Postal Service is offering early retirement to postal workers, local postmasters are saying the offer has yet to have a major effect on their offices.

Early Thursday, the Postal Service denied rumors that it was considering as many as 40,000 layoffs, but is offering early retirements. The retirements are available to employees who are at least 50 years old and have worked for the Postal Service for at least 20 years, or those who are any age and have worked 25 years. So far, 3,685 USPS employees have chosen early retirement nationwide. Valerie Hughes, who handles corporate communications for the Postal Service's Gateway District in St. Louis, said it is too early to tell how many employees in Southern Illinois will accept this offer and what kind of impact it will have.

She said those who have accepted may see early retirement as a chance to do something else they want, such as starting their own business.

Jim Davis, postmaster at the Du Quoin Post Office, said despite having several eligible employees, no one at his office has taken advantage of the early retirement. There is no extra incentive to make that move, he said, and with a troubled economy, people are too afraid of giving up their jobs.

"A lot of it has to do with the economy and being unsure," Davis said.

Marion postmaster Curt Shadowens said one employee at his office has taken early retirement. However, he said it is difficult to say how many people in the region will accept early retirement because it will be offered through phases based on job type.

He said early retirements will allow post offices to change accordingly with the direction of the USPS.

"Early retirements allow a company like ours to restructure," Shadowens said.

Hughes said because of increases in automated equipment, many post offices do not need as many employees. According to a USPS news release, they sustained a $2.8 billion net loss at the end of the 2008 fiscal year despite initiatives to cut costs by $2 billion. Measures included 50 million fewer work hours than FY 2007. The total revenue for the department was $75 billion, unchanged from last fiscal year, but expenses totaled $77.8 billion. Of the expenses, $5.6 billion went to payment of the Postal Act of 2006, pre-funding retiree health benefits. Without the funding for the Postal Act, expenses were up by less than one percent.

The amount of mail in FY 2008 declined by 9.5 billion pieces or 4.5 percent compared to last fiscal year. The USPS attributes the decline to the economy and e-mail.

"Like other businesses, we're being affected by the economy," Hughes said.

codell.rodriguez@thesouthern.com

351-5804