How a Pilot Strike Threat Could Derail the UPS Turnaround

[cheryl]

How a Pilot Strike Threat Could Derail the UPS Turnaround - Motley Fool

Cargo pilots at UPS are threatening a strike -- and it could be bad news if any customers get spooked.

Last week, pilots at package delivery giant United Parcel Service (NYSE:UPS) voted to authorize a strike if negotiations with the company break down. The pilots still need to be released from negotiations by the National Mediation Board for a strike to be legal, something that rarely occurs. As a result, UPS has characterized the strike vote as merely "a symbolic gesture" by the union.

While it may be a symbolic gesture, it's not a meaningless one. With the threat of a pilot strike during the busy holiday season -- even if it's a low-probability outcome -- and UPS drivers promising to support any pilot strike, customers could worry about relying too heavily on UPS. FedEx may be able to capitalize on this uncertainty to gain market share.

 

[IVE GOTTA PACKAGE 4U]

It's been what,5 years? No excuse for that.

 

[UpstateNYUPSer(Ret)]

It's been what,5 years? No excuse for that.

Gonna be a lot of brand new BMW's on the tarmac when they get their retro checks.

 

[IVE GOTTA PACKAGE 4U]

Gonna be a lot of brand new BMW's on the tarmac when they get their retro checks.

Paid in cash!

 

[cosmo1]

Gonna be a lot of brand new BMW's on the tarmac when they get their retro checks.

Paid in cash!

Maybe the pilot that lives in town will want one our BMW store doesn't have on the lot.

I could get sent out on a dealer trade for it!

 

[10 point]

Funny thing that our AEs didn't even know about this until a driver told them.

It's a good move for the pilots but it may do nothing but hurt our customer base at a really poor time with this in the media.

People have not forgotten.

 

[Packmule]

It's been what,5 years? No excuse for that.

Maybe, but the customers don't care. Most consider pilots to be as overpaid as doctors and lawyers.
We could lose a lot of packages and a lot of jobs to boot. And they won't be pilot jobs.

 

[Brownslave688]

Maybe, but the customers don't care. Most consider pilots to be as overpaid as doctors and lawyers.
We could lose a lot of packages and a lot of jobs to boot. And they won't be pilot jobs.

I've read up on his it's basically 6 months min to get through all of the government bs for them to strike. It ain't gonna happen.

 

[IVE GOTTA PACKAGE 4U]

Maybe, but the customers don't care. Most consider pilots to be as overpaid as doctors and lawyers.
We could lose a lot of packages and a lot of jobs to boot. And they won't be pilot jobs.

No excuse for 5 years without a contract.

 

[FrigidFTSup]

No excuse for 5 years without a contract.

It's extremely common in the airline industry. When you make as much as pilots do, you can afford to sit on your hands for bit.

 

[FrigidFTSup]

I've read up on his it's basically 6 months min to get through all of the government bs for them to strike. It ain't gonna happen.

Almost all of the airline industry strikes in the last 2 decades have been illegal. Their way of hurting the company is different. They write things up on the aircraft they may not have normally written up, causing a mechanic to come out and needing to fix it or render it inoperative. Just little things that add up.