Driver Buyouts?

Johney

Well-Known Member
I don't believe it will happen but think about it. A driver with 25 years gets 6 weeks vacation that's a big chunk.They work slower than say a 5 year driver doing the same rte (from what I see here)They are older and risk injury easier which again cost's them more $$ so maybe the idea isn't really that far fetched. I doubt they would offer the world but.
 

Johney

Well-Known Member
I know around here a lot of towns are and the county Sherrif office are offering buyouts to save money. I know that's not near the volume of UPS but it is happening.
 

brett636

Well-Known Member
The only way I see a buyout occurring is if we go to a two tier pay scale where all new incoming drivers would top out at less per hour than what current drivers make. If the difference was great enough it could motivate the company to start offering buyouts to current drivers to help get in the cheaper labor, but even if the two tier scale were to happen I just don't see the company ever going through with a buyout given the number of current retirement eligible drivers they currently have as it is. The wait for these drivers to leave is not all that long, and could cost the company very little extra in the long run.
 
getting past the opportunity to complain about the meat grinder affect of the job the question to ask would be where is there a glut of drivers? buyouts are expensive propositions. Thanks to the union we allready have contractual options to reduce the workforce without needing a buyout.

Bingo we have a winner.
 

Ms.PacMan

Well-Known Member
We've been hearing rumors of giving employees full time credit for the part time years they worked. A 25yr driver with 5yrs part time would then be eligible for a full pension.

I'm in Central States though and I think it would be easier for UPS to offer incentives because they are in charge of the pension payments until we are are 65.
 

Catatonic

Nine Lives
I know around here a lot of towns are and the county Sherrif office are offering buyouts to save money. I know that's not near the volume of UPS but it is happening.

The only reason a company or employer would offer a buyout is to reduce future obligations or debt.
Since UPS pays a fixed amount per driver to the Teamsters regardless of the driver's length of service, there is no motivation for UPS to offer early retirement to drivers.
 

helenofcalifornia

Well-Known Member
I think far more likely is the scenario where UPS would offer a "contract signing bonus" to get the two tier pay in place. Bonus would have to be substantially more than the $1000 one in the 80's. Watch the our/us Teamsters sell out our fellow worker in a heartbeat for a big enuf bonus.
 

scratch

Least Best Moderator
Staff member
I think far more likely is the scenario where UPS would offer a "contract signing bonus" to get the two tier pay in place. Bonus would have to be substantially more than the $1000 one in the 80's. Watch the our/us Teamsters sell out our fellow worker in a heartbeat for a big enuf bonus.

Helen is right on the money! This is the only "Driver Buyout" we will ever be offered, just like the part timers were sold out in 1982.
 
P

Playdoe

Guest
From an accountants standpoint, (by the way I am just a 27 year safe driving feeder driver)If you define a senior employee as one who has six weeks vacation @ 45 hours plus 59 hours option. Subtract two weeks vacation from the that for a new hire. The company has a return on invested capital @ 13.1 %. Ten year cost to keep me is $150314.82. Now if the company was debt free that ROIC number would jump up around 30%. The ten year cost to keep me jumps to $453,385.11. From an employee benefit perspective, If my pension benefit reaches critical mass at 35 years, I should be able to draw that whether I am working or not. From a risk management perspective, the dilemma for the company is the risk that, I have a higher statistical probability of getting into an accident the more I drive. Also, I become a greater workers comp risk, due to the repetitive demands of the job. The company has a window of opportunity with a certain group of drivers who meet the above criterion. From what I see, they will be targeting these drivers because of the above cost data that they are well aware of. With the price of fuel increasing, they have to reign in pension costs further by the next contract. I predict a freeze of benefits at thirty years years. I predict a possible MSA type plan, concerning health coverages. They have to dig deep. If I were the CEO, that would just be the start.
 

UpstateNYUPSer(Ret)

Well-Known Member
The only reason a company or employer would offer a buyout is to reduce future obligations or debt.
Since UPS pays a fixed amount per driver to the Teamsters regardless of the driver's length of service, there is no motivation for UPS to offer early retirement to drivers.

As I stated above, any buyout offer would have to be coupled with a two-tiered wage structure to make any economic sense.

I think far more likely is the scenario where UPS would offer a "contract signing bonus" to get the two tier pay in place. Bonus would have to be substantially more than the $1000 one in the 80's. Watch the our/us Teamsters sell out our fellow worker in a heartbeat for a big enuf bonus.

+1
 

bbsam

Moderator
Staff member
nah,, a buyout would never happen, there is a common denominator amongst drivers , we are all hard workers, there is diff types but there is no way of getting around the fact this job is hard.. a lower paid/lower skilled workforce would never put up with the delivery driver position and what it entails ,, same reason the most talented drivers have no interest in management..

Odd, shut off from reality response.
 

Dizzee

ɹǝqɯǝɯ ɹoıuǝs
After an exhaustive investigation, I present proof positive that this will happen. Although this memo was "slightly censored" before it was discarded, the message is crystal clear. Take the time to digest the mass of information contained within, and you too will come to the same conclusion.
 

moreluck

golden ticket member
After an exhaustive investigation, I present proof positive that this will happen. Although this memo was "slightly censored" before it was discarded, the message is crystal clear. Take the time to digest the mass of information contained within, and you too will come to the same conclusion.
looks like Obama's birth certificate......
 
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