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Brown Cafe UPS Forum
UPS Union Issues
Comparison: Last, Best & Final to Pre-strike proposals
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<blockquote data-quote="brownIEman" data-source="post: 1026956" data-attributes="member: 14596"><p>I like the thinking behind the refinery idea. That is getting creative. I do not believe it would work for us though. Fuel is a much larger percentage of total cost for Delta than for us, it is their largest expense by far. So the money invested would get paid back by the savings in a relatively short time. I do not know what the break even point for UPS to buy a refinery would be, but I would estimate a long, long time, maybe a hundred years? I really don't know.</p><p></p><p>I get that you would rather screw over, as you put it, those in management than the Teamsters employees of UPS. Given that you are in the Teamsters, plus adding in the fact that you clearly despise those of us in management, I find that completely understandable. You will be happy to know that since the 1997 failure to share the burden of controlling rising costs with the Teamsters, UPS has been doing just that, and screwing over Management. Benefits have been cut, and part of their cost shifted to management employees, the ranks have been and continue to be thinned. From a cost containment stand point, all well and good.</p><p></p><p>There are many other areas where UPS can and has controlled the growth of costs. The real problem is that these are the smaller costs. It would be like a family getting an older car to reduce car payments, raising their thermostat and watching water use to lower their utility bills, and then wondering why their monthly expenses keep going up, as they ignore the ballooning payments on their adjustable mortgage. You cannot effectively control costs if you persist in ignoring the largest expense you have. </p><p></p><p>I suppose we could just stop raising rates in response to rising costs. We would soon then be loosing money instead of making it. We would wind up having to borrow to keep our operation running. We would of course win back more business, no doubt, with lower rates. So maybe we could get more investors. Maybe change our tag line from the gawd awful we heart logistics to "We are moving more packages than ever before, and losing money on each and every one of them!!" But I am guessing most savvy investors would recognize that for the death spiral it would be.</p></blockquote><p></p>
[QUOTE="brownIEman, post: 1026956, member: 14596"] I like the thinking behind the refinery idea. That is getting creative. I do not believe it would work for us though. Fuel is a much larger percentage of total cost for Delta than for us, it is their largest expense by far. So the money invested would get paid back by the savings in a relatively short time. I do not know what the break even point for UPS to buy a refinery would be, but I would estimate a long, long time, maybe a hundred years? I really don't know. I get that you would rather screw over, as you put it, those in management than the Teamsters employees of UPS. Given that you are in the Teamsters, plus adding in the fact that you clearly despise those of us in management, I find that completely understandable. You will be happy to know that since the 1997 failure to share the burden of controlling rising costs with the Teamsters, UPS has been doing just that, and screwing over Management. Benefits have been cut, and part of their cost shifted to management employees, the ranks have been and continue to be thinned. From a cost containment stand point, all well and good. There are many other areas where UPS can and has controlled the growth of costs. The real problem is that these are the smaller costs. It would be like a family getting an older car to reduce car payments, raising their thermostat and watching water use to lower their utility bills, and then wondering why their monthly expenses keep going up, as they ignore the ballooning payments on their adjustable mortgage. You cannot effectively control costs if you persist in ignoring the largest expense you have. I suppose we could just stop raising rates in response to rising costs. We would soon then be loosing money instead of making it. We would wind up having to borrow to keep our operation running. We would of course win back more business, no doubt, with lower rates. So maybe we could get more investors. Maybe change our tag line from the gawd awful we heart logistics to "We are moving more packages than ever before, and losing money on each and every one of them!!" But I am guessing most savvy investors would recognize that for the death spiral it would be. [/QUOTE]
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Comparison: Last, Best & Final to Pre-strike proposals
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