some 7,000 square feet has been given, the land acquisition process has yet to be completed, thus the new facility cannot be ready for occupancy until fall of 1975 at the earliest.

FAIRBANKS

The anticipation of the pipeline construction boom caused the Postal Service to purchase and remodel two existing buildings near the present postal facility at the Fairbanks International Airport. These two buildings, a carrier annex and an administration building, contain 12,000 and 5,600 square feet respectively. Both were completed and occupied in August 1974. In addition, dock modification was completed at the main Post Office as well as lobby modification including additional lock boxes in that same facility. However, even more expansion of the mail processing facility is needed. Current plans call for a 20,000 square feet expansion costing in the neighborhood of $2 million. These plans, although submitted to Washington, have not been approved as of yet.

The most noticeable mail increase involves General Delivery. General Delivery mail has more than tripled since the start of the Spring construction. The large number of General Delivery patrons has resulted in long lines of people waiting to pick up their mail at the only General Delivery in the Federal Station downtown Fairbanks. This line intermingles with other lines for non-General Delivery Postal businesses. The Postal Service is attempting to amelorate this problem by reconverting two seldom used postal inspection offices into a General Delivery area at the opposite end of the Postal lobby. Hopefully, this will lessen the pressure on this aspect of mail delivery. The Postal Service also intends to increase, by approximately 700, the number of Post Office boxes at the main Post Office at the Fairbanks International Airport. In addition, serious consideration is given to an additional branch Post Office between the airport and downtown Fairbanks. Current thinking envisions a branch near Lathrop High School.

In addition, a new Post Office for Glenallen has been approved by the Postal Service's Capital Investment Committee. Design work is pending site acquisition. New Post Offices modular facilities have been completed and occupied in Copper Center and Delta Junction, two communities along the pipeline route.

EMPLOYEE TURNOVER

The pipeline construction has had its most dramatic effect, however, on personnel turnover in the Postal Service. In the postal investigations of 1973, it was noted that one of the major causes for the declining quality of mail service was the loss of some 70,000 personnel. In any area of the United States, it is important to have experienced and stable employees. Unfortunately, Alaska has always had a higher than average turnover. This situation has been compounded by the availability of high paying pipeline related jobs.

During fiscal year 1973, employee turnover rate in Anchorage was 31 percent, down 1 percent from the year before. Fiscal year 1974 saw another decrease of 6 percent, however, less than one-half of fiscal year 1975 is over and Anchorage has seen a 6 percent increase in

turnover rate. Fairbanks has experienced an even more dramatic turnover. Fiscal year 1975 is expected to double the turnover rate for fiscal year 1974. The situation in Fairbanks is most acute in that access to higher paying pipeline related jobs is easier. This creates a problem for not only current postal employees, but prospective ones as well. In more personal terms, the turnover can be seen in the rapid advancement a postal employee can expect. For example, according to postal union officials, the normal time needed to work up to the position of window clerk was five years. That time now has been reduced to three months. A mail carrier would normally work 6 to 9 months before he would be given his own route. The carrier now can expect to have his own route in three weeks. Although this situation may appear to favor the new postal employee who wishes to make USPS his career, it has resulted in an obvious lowering of efficiency on postal service.

Postal customers can now expect a greater number of errors due to inexperienced personnel. Inexperienced personnel, according to Postal officials, are the greatest source of mistakes and complaints. Inexperienced help also contributes greatly to the morale problem. For example, Postal Service tends to rely more and more on experienced help to carry them through or see them through heavy mail days. This calls for mandatory overtime on the part of "old timers." However, mandatory overtime is not popular.

Experienced personnel feel that all postal employees, whether new or old, should share the burden of mandatory overtime. Postal Service management, realizing that an employee working an additional 2 to 4 hours overtime is more likely to make mistakes than on a regular 8 hour day, tend to choose those individuals that they know will make fewer mistakes. These individuals, of course, tend to be the more experienced personnel.

Postal management has pointed out another source of friction between management and employees, due to the availability of high paying construction jobs. An example was cited of an employee who was doing less than satisfactory work. A supervisor, upon consulting and advising the new employee to increase his efficiency, was simply told, "If you don't like what I am doing and the way I'm doing it, I'll quit and get a higher paying job on the pipeline." Unfortunately for the Postal Service, this attitude is quite prevalent among new and even old employees. This rebellious attitude affects even the excellent employee who finds it distasteful to be working along side a Postal employee who seems to care little about the quality or efficiency of his work.

Compounding the high turnover rate is the depletion of the pool of interested applicants, caused by the availability of high paying construction jobs. High paying jobs has lessened the need for many wives to supplement their husband's income with a second job. This source of employees is particularly damaging to the Postal Service's efforts to stabilize their work force. With the availability of construction jobs, naturally head of household applicants have been very low compared to former years. These two factors have required the Postal Service to recruit part-time workers and students. Neither of these employment sources offer much hope for career employees and a stabilized work force. In prior years, students have proved to be a

good source of employment for their years at the University of Alaska, working part-time during the school year and full-time during the summer. However, with the high paying construction jobs, students are no longer interested in any type of work in the summer for the Postal Service. Added to this problem of full-time students working during the school year is the inability of students to adjust their work schedule because of the demands of classroom attendance.

It should be noted, however, that Alaska has traditionally had a problem of a nomadic work force. An article in "Alaska Industry" magazine of June 1972 entitled, "Why Alaskans Quit Their Jobs" illustrates this problem for all Alaskan businesses quite well.

AUXILIARY SERVICES PROVIDED TO THE CONSTRUCTION WORKERS BY ALYESKA PIPELINE SERVICE COMPANY

The Alyeska Pipeline Service Company has established its main headquarters at the North Post, Fort Wainwright, Fairbanks, Alaska. In their headquarters, Alyeska has established what could easily be considered a private postal system for those men working on the construction phase of the pipeline. This system became operational June 17, 1974. It does not include the British Petroleum and Atlantic Richfield oil production facilities at Prudhoe Bay nor the receiving and shipping terminal at Valdez. Both Prudhoe Bay and Valdez, however, do have construction camps which are serviced by Alyeska Pipeline Service Company. The main postal headquarters for Alyeska is centered in the old Post Office at Fort Wainwright. The U.S. Postal Service still maintains one employee with limited window hours in this facility. However, almost the entire building is used by Alyeska for their mail processing. All mail bound for any employee on the pipeline is sent to the Alyeska Service Center. The U.S. Postal Service makes no attempt to deliver any mail in the construction camps. Alyeska assumes the responsibility of delivering the mail to every employee. By the use of a locater card system, the Service Center can determine where each employee is located and forward all mail. Because of the constant transferring of employees between the various camps, the U.S. Postal Service could not provide such an accurate and speedy forwarding service.

The Alyeska Pipeline Service Company carries on an extensive orientation program for each new employee. Included in this orientation program are instructions, both verbal and written, as to the mail service available to him as well as instructions on how to utilize this mail service. (See Appendix A) In addition, a question and answer information sheet is provided each employee (see Appendix D). Each construction camp maintains a mail representative. These non-Postal employees function to insure accurate and expeditious receipt and delivery of camp mail. Their specific responsibilities are outlined in Appendix B.

The U.S. Postal Service has carried out extensive contacts with Alyeska Pipeline Service Company and their subsidiary, Bechtel Company, to assist them in developing and maintaining adequate mail service to their employees. The Postal Service, in fact, has fur

nished a large number of sacks, sack racks, cases, and other mail distribution equipment in order to process the mail efficiently for the various camps. In addition, the Postal Service provided guidance and financial services at the Alyeska Service Center to expedite mail delivery to construction camp employees. Special transportation delivery schedules from the Fairbanks main Post Office to Alyeska's Service Center have been arranged in order to connect with all camps' supply flights. Both the officials of the U.S. Postal Service and of Alyeska Pipeline Service Company and their subsidiary Bechtel Company have had high praise for each other's assistance and cooperation. There appeared to be only two problems discernible from visiting the Service Center, and talking with Postal officials, and construction camp supervisors. One problem seemed to be internal logistic problems with Alyeska Pipeline Service Company in maintaining an adequate supply of postage stamps at the various camps. The fault here, however, lies somewhat with both the camp mail representative and the mail Service Center at Ft. Wainwright. The second problem involved the shipment of liquor via the mails. Senator Stevens' office did receive some complaints regarding the inspection of packages for possible containment of liquor. The Postal Service supervisor did admit to inspecting 45 packages thought to contain liquor. Of the 45, 44 in fact did contain liquor contrary to Title 18, Section 1716 of the U.S. Postal Regulations (see appendix C). Alyeska Pipeline Service Company acknowledges a number of packages brought to their Service Center not via the U.S. mails which contained liquor.

The Alyeska Pipeline Service Company and its sub-contractors are adamant in their opposition to any liquor in the construction camps. Consequently, they totally approve and support any efforts by the U.S. Postal Service to stop shipment of liquor via the mails. In addition, they themselves do not allow liquor to be shipped via their own transportation and mail system.

Each construction camp provides all postal services which are normally provided in any U.S. Post Office. Appendix D is a copy of a question and answer sheet relating to postal service given to each employee during orientation. This three page item exemplifies all the postal services available to each camp resident.

Mail bound for the oil production camps on Prudhoe Bay, however, do not have the advantage of the Alyeska Pipeline Service Company's mail system. Each company and subcontractor maintains a post office box in Fairbanks or Anchorage. For example, British Petroleum maintains a box in Fairbanks. Any employee working in the BP camp would have his mail sent to that box number. BP then makes arrangements through Wien Airlines' ESP service (Expedited Small Package). Here mail is gathered in small packages or pouches and sent to the BP camp daily. The State maintains an airport at Deadhorse, Alaska, which is the only nonprivate airport between Fairbanks and the Prudhoe Bay oil field. The airport borders on the BP-ARCO oil lease site. Mail addressed to an individual in an oil production camp is taken in the ESP pouch to the Wien Airlines 20 minutes before departure and is available at the Wien Airline counter at Deadhorse 20 minutes after the plane's arrival. Mail is picked up by a designated camp employee and taken back to the camp site and distributed via an open alphabetized box system. This mail delivery system is consistent with other construction camp procedures throughout the world. Each

employee then goes through the appropriate alphabetized box and obtains his mail.

Unclaimed mail, however, does pose a problem. As a matter of courtesy, camp representatives make every effort to locate the addressee of the unclaimed letter. If that individual cannot be found, the letter is sent back to the Postal Service. This problem seemed to be the major complaint of camp supervisors.

Like the construction camps along the pipeline route, camps on the oil production fields have the same services offered in any Post Office with a major and important exception. The exception is accountable mail, registered mail, money orders, certified mail, etc. This is an extremely important service to employees on the North Slope. It is with the use of accountable mail that employees are able to send their checks to their families and to their bank accounts in the Lower 48 as well as other parts of Alaska. This problem is somewhat alleviated by a unique banking service offered by the Alaska National Bank of the North. A small branch office with limited hours exists in the Wien Airline terminal. The pipeline account, which is explained further in a brochure marked appendix D, does not deal at all with the need for employees to send registered, certified, or insured mail south. This need can only be remedied by a U.S. Postal facility at Deadhorse. The U.S. Postal Service has agreed, at Senator Stevens' urging, to establish a contract station at the Deadhorse Airport. This unit would handle only air mail, up to 9 ounces, and first class letter mail, up to 12 ounces. The facility would be expanded to include all services once the highway linking Fairbanks to Prudhoe Bay is completed, sometime in late 1975. Two firms have expressed an interest in servicing this contract mail station. One interested party, Atwood Enterprises, owns and operates the only hotel at Deadhorse. The hotel is approximately 400 to 500 yards from the airline terminal. The other interested party is the Alaska National Bank of the North, which has an office in the airline terminal itself. December 1, 1974, is the opening date for a new Wien Airline Terminal at Deadhorse to replace the totally inadequate current facility. Alaska National Bank of the North will also have an office within this new terminal. It should be noted that the Post Office is needed not only to service the oil production camps but the various businesses and State agencies which have been established at Deadhorse. Once the pipeline construction is completed, Deadhorse is expected to have a permanent population of approximately 900 individuals.

BUDGET

Postal officials in Alaska feel that the Postal Service and the Western Region Office have been more than fair in meeting the budget requests of the Alaska District. The Postal budget for the Western Region has decreased as a whole 2 percent, however, Alaska's budget was increased 4.5 percent for fiscal year 1975. The budget currently is in excess of that by 0.6 percent. The District manager feels that they will have no problem, based on past history, in obtaining the necessary increase of funds from the Regional Office.