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<blockquote data-quote="upsdawg" data-source="post: 140023" data-attributes="member: 2020"><p>Cold------if DHL has a lower cost to serve( lower wages and benefits---and some subsidizing from the German Postal Service) they get away with dirt cheap prices---and UPS can't do anything about it.I'm not saying that I argree with it--that is just the way it works.Also, UPS has always compared just the volume of a customer and not the overall revenue, until recently, when offering discounts.So , bottom line---if a company like FedEx continues to get away with using sub-contractors and not paying employee salaries and benefits--it will continue to be able to offer lowwer prices than UPS---thus luring away customers wanting to save $$$$---------when the new 2008 contract comes out it is something that needs to be addressed-----how much longer can UPS pay higher wages and all medical and pension benefits and stay competitive in the transportation industry and compete with non-union FedEx's??</p><p></p><p>In SoCalif the Retail Clerks went on strike because they didn't want to pay a portion of their medical-------now huge supermarker chains in Nor Calif (Albertson's) are selling off their stores because they know it is a matter of time that non-union Wal Mart and their Super Stores will be able to offer mucvh lower prices and steal customers away-------it is called Market Share and it is what everybody is fighting for!!</p></blockquote><p></p>
[QUOTE="upsdawg, post: 140023, member: 2020"] Cold------if DHL has a lower cost to serve( lower wages and benefits---and some subsidizing from the German Postal Service) they get away with dirt cheap prices---and UPS can't do anything about it.I'm not saying that I argree with it--that is just the way it works.Also, UPS has always compared just the volume of a customer and not the overall revenue, until recently, when offering discounts.So , bottom line---if a company like FedEx continues to get away with using sub-contractors and not paying employee salaries and benefits--it will continue to be able to offer lowwer prices than UPS---thus luring away customers wanting to save $$$$---------when the new 2008 contract comes out it is something that needs to be addressed-----how much longer can UPS pay higher wages and all medical and pension benefits and stay competitive in the transportation industry and compete with non-union FedEx's?? In SoCalif the Retail Clerks went on strike because they didn't want to pay a portion of their medical-------now huge supermarker chains in Nor Calif (Albertson's) are selling off their stores because they know it is a matter of time that non-union Wal Mart and their Super Stores will be able to offer mucvh lower prices and steal customers away-------it is called Market Share and it is what everybody is fighting for!! [/QUOTE]
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