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Oberstar announces MDI and USPS reach agreement
Date: 12/6/2006
WASHINGTON - Following personal involvement by Congressman James L. Oberstar, the U.S. Postal Service (USPS) and Minnesota Diversified Industries (MDI) have reached an agreement that will enable MDI's facilities on Minnesota's Iron Range to continue supplying a significant number of plastic mail trays to the USPS, Congressman Jim Oberstar announced today. As a result of a telephone call from Oberstar to Tom Day, USPS' Senior Vice President for Government Relations, the USPS announced it will increase the number of trays it will order in 2007, which will enable MDI to maintain its workforce at its facilities in Hibbing and Grand Rapids.
"The USPS had been considering greatly reducing - by 65% - the number of plastic trays it would order from MDI in 2007, which would have resulted in job losses at MDI's facilities in Hibbing and Grand Rapids," said Oberstar. "I have toured MDI's facilities on the Iron Range and met with MDI employees, and this organization does good work. I am very pleased that MDI and the USPS were able to work together to reach a mutually beneficial agreement."
As a nonprofit organization, MDI assists disabled and disadvantaged workers by offering them vocational and skill development, as well as job opportunities.
"Congressman Oberstar has been a supporter of MDI for many years, not only through visits to our facilities, but also in helping us with USPS issues. He has been a steadfast advocate for economic development on the Iron Range and for MDI employees," said Mark de Naray, MDI's President and CEO. "Whenever MDI has come to a bump in the road or jobs are at issue, we have always been confident that Congressman Oberstar will do whatever he can do to help. It is that consistency of purpose that makes him an excellent representative for the people of northern Minnesota."
Earlier this year, USPS had ended a contract with MDI for stamp packaging, which resulted in the loss of more than 30 positions in St. Paul.
