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Is it getting that bad elswhere?
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<blockquote data-quote="j13501" data-source="post: 109417" data-attributes="member: 918"><p>Wkmac,</p><p> Once again you humorously highlight some serious concerns that we have about our company. I don't post often but enjoy your insight. (your posts are the best!) </p><p></p><p> The starting wage rate for parttime employees is a concern for the reason you identified- these people are the drivers and management people of tomorrow, and we want the best quality people we can hire. With the low pay rate, each year it makes the selection process tougher. The solution seems obvious: just raise the pay to make it attractive to new employees. </p><p></p><p> How high a starting wage rate should we have? Pick a number- should it be $10, or $11 or $12 an hour. I'm not sure but for example purposes, let's use $11. </p><p></p><p> If we hire 25,000 parttime employees a year at an additional $2.50 an hour with an average workweek of 20 hours it would add an additional $1,250,000 a week (or $65 million a year) to our cost structure. </p><p></p><p> Now here's the problem. We all know UPS runs on a budget. In the last contract, wage and benefit increases for employees were about $1 billion (over the life of the contract). This allowed all our people to get a fair contract that rewards them for their hard work. However, if we add $65 million additional wages, where does it come from? Do drivers, or existing part time employees or mechanics or article 22.3 full time people get less increase so that new hires can have more?</p><p></p><p> The issue is that new parttimers don't vote on contracts- drivers and other existing employees do. Therefore no one can agree to give new parttimers more by giving other employees less - it won't pass and no teamster negotiator is going to agree to it. Therefore each contract for the last 20 years concludes and the problem of low starting wages is not addressed. </p><p></p><p> This thread regarding supervisors quitting identifies some areas where our company has addressed higher costs by reducing mangagement compensation. The company can't continue to cut costs in that area without a further loss of qualified managers and supervisors. </p><p></p><p> My question is: how would you address this issue of a higher starting wage rate in the upcoming contract, especially with all the pension concerns that will certainly dominate the negotiations ?</p></blockquote><p></p>
[QUOTE="j13501, post: 109417, member: 918"] Wkmac, Once again you humorously highlight some serious concerns that we have about our company. I don't post often but enjoy your insight. (your posts are the best!) The starting wage rate for parttime employees is a concern for the reason you identified- these people are the drivers and management people of tomorrow, and we want the best quality people we can hire. With the low pay rate, each year it makes the selection process tougher. The solution seems obvious: just raise the pay to make it attractive to new employees. How high a starting wage rate should we have? Pick a number- should it be $10, or $11 or $12 an hour. I'm not sure but for example purposes, let's use $11. If we hire 25,000 parttime employees a year at an additional $2.50 an hour with an average workweek of 20 hours it would add an additional $1,250,000 a week (or $65 million a year) to our cost structure. Now here's the problem. We all know UPS runs on a budget. In the last contract, wage and benefit increases for employees were about $1 billion (over the life of the contract). This allowed all our people to get a fair contract that rewards them for their hard work. However, if we add $65 million additional wages, where does it come from? Do drivers, or existing part time employees or mechanics or article 22.3 full time people get less increase so that new hires can have more? The issue is that new parttimers don't vote on contracts- drivers and other existing employees do. Therefore no one can agree to give new parttimers more by giving other employees less - it won't pass and no teamster negotiator is going to agree to it. Therefore each contract for the last 20 years concludes and the problem of low starting wages is not addressed. This thread regarding supervisors quitting identifies some areas where our company has addressed higher costs by reducing mangagement compensation. The company can't continue to cut costs in that area without a further loss of qualified managers and supervisors. My question is: how would you address this issue of a higher starting wage rate in the upcoming contract, especially with all the pension concerns that will certainly dominate the negotiations ? [/QUOTE]
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