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UPS Union Issues
Ken H
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<blockquote data-quote="beentheredonethat" data-source="post: 1163857" data-attributes="member: 4886"><p>Personally I don't agree with all the decisions that UPS is making in terms of Paid Day.</p><p></p><p>I think a reasonable pd day is about 8.8 - 9.2 hours average. Also, if I were to be COO and make changes. I would make it so that all the areas close to the facilities were closer to 8 hour dispatches and make it known to the drivers so the drivers that want to be in and out work those routes. The routes with a long to/fr would be at a very high paid day due to adding a route costs a lot in to/fr penalty. </p><p></p><p>Please keep in mind, where I am from (New England) the HW and Pension is based on UPS contributing x dollars for HW and y dollars for pension for all hours paid up to 40 hours in a week. So on average after 8 hours there is no more cost to HW and pension although we do pick up additional OT costs. Therefore in the driver ranks adding another driver does cost significant HW and pension expense. If an insider goes from inside to driver, then we have to replace that person and pay for their HW. I can't speak for all other areas of the country as to the impact of HW and pension. However, I believe the new National Agreement will work similar to what I described in New England. The differential between the two is pretty minimal. Also, what has been shown is that if you put a driver who is used to getting paid over 9.5 hours with a light day they eventually go back to working the longer day since they are used to the higher paycheck and people get accustomed to their pay and tend to live pay check to pay check. It's nice to get a break, but after a few weeks their wallet is empty and they work longer. . (Granted, not right away, but over time this has happened). </p><p></p><p>Where I think the error is on a long paid day is not in the slow down after 8 hours (I admit to some extent that exists and you are right). However, I think that's minor compared to eventually the person is more likely to get injured or in an accident. This is where the big cost is in my opinion. </p><p></p><p>The biggest problem is that although I disagree, the bean counters have shown it is more profitable (at least in short term). </p><p></p><p>As far as customers and customer's pkgs. I think the best thing UPS would do is to invest big time for a year or two in our ground network. I'd love to see a few new large hubs near me. In New England there are 2 big hubs (Worma, Chema) and some smaller hubs (HARCT, STRCT, PRORI) with PRORI being the newest followed by Chema. Chema is 26 years old. (and that's one of our newer hubs). There is no real reason for Worma and Chema. We should have one large Hub nearer to Worma that is an 80K hub to process the volume from NH\ME\VT\MA.</p><p></p><p>We should take STRCT and get rid of it and build a large hub for all New England to NJ\NYC area pkgs that can handle a substantial amount of volume. Similarly NJ needs another very large big building to handle the volume they process. </p><p></p><p>We could cut out a lot of costs by building some big hubs with less overall hub handles to process our customers pkgs. </p><p></p><p>BenBen.. You like to invest in stocks and you have a good analytic mind and you like dividend stocks in particular. </p><p>If you had 100K and you had two choices one fund that "guarantees" you 5% interest for 30 years and another that guaranteed you 6% interest for 30 years (and yes.. let's assume the guarantee is actually valid). Almost all people would go for the 6%, but why? after all it's only 1% more that's not that big of a deal right? Well, you and I both know that it is a big deal. It is because after 30 years the extra 1% gave you over 140K more in returns (assuming no impact of taxes and it was reinvested). </p><p></p><p>With UPS, we multiply the savings by the thousands upon thousands of drivers. </p><p></p><p>Hope that makes sense.. and even though I don't agree with it, the numbers over the last few years show it works and is profitable.</p></blockquote><p></p>
[QUOTE="beentheredonethat, post: 1163857, member: 4886"] Personally I don't agree with all the decisions that UPS is making in terms of Paid Day. I think a reasonable pd day is about 8.8 - 9.2 hours average. Also, if I were to be COO and make changes. I would make it so that all the areas close to the facilities were closer to 8 hour dispatches and make it known to the drivers so the drivers that want to be in and out work those routes. The routes with a long to/fr would be at a very high paid day due to adding a route costs a lot in to/fr penalty. Please keep in mind, where I am from (New England) the HW and Pension is based on UPS contributing x dollars for HW and y dollars for pension for all hours paid up to 40 hours in a week. So on average after 8 hours there is no more cost to HW and pension although we do pick up additional OT costs. Therefore in the driver ranks adding another driver does cost significant HW and pension expense. If an insider goes from inside to driver, then we have to replace that person and pay for their HW. I can't speak for all other areas of the country as to the impact of HW and pension. However, I believe the new National Agreement will work similar to what I described in New England. The differential between the two is pretty minimal. Also, what has been shown is that if you put a driver who is used to getting paid over 9.5 hours with a light day they eventually go back to working the longer day since they are used to the higher paycheck and people get accustomed to their pay and tend to live pay check to pay check. It's nice to get a break, but after a few weeks their wallet is empty and they work longer. . (Granted, not right away, but over time this has happened). Where I think the error is on a long paid day is not in the slow down after 8 hours (I admit to some extent that exists and you are right). However, I think that's minor compared to eventually the person is more likely to get injured or in an accident. This is where the big cost is in my opinion. The biggest problem is that although I disagree, the bean counters have shown it is more profitable (at least in short term). As far as customers and customer's pkgs. I think the best thing UPS would do is to invest big time for a year or two in our ground network. I'd love to see a few new large hubs near me. In New England there are 2 big hubs (Worma, Chema) and some smaller hubs (HARCT, STRCT, PRORI) with PRORI being the newest followed by Chema. Chema is 26 years old. (and that's one of our newer hubs). There is no real reason for Worma and Chema. We should have one large Hub nearer to Worma that is an 80K hub to process the volume from NH\ME\VT\MA. We should take STRCT and get rid of it and build a large hub for all New England to NJ\NYC area pkgs that can handle a substantial amount of volume. Similarly NJ needs another very large big building to handle the volume they process. We could cut out a lot of costs by building some big hubs with less overall hub handles to process our customers pkgs. BenBen.. You like to invest in stocks and you have a good analytic mind and you like dividend stocks in particular. If you had 100K and you had two choices one fund that "guarantees" you 5% interest for 30 years and another that guaranteed you 6% interest for 30 years (and yes.. let's assume the guarantee is actually valid). Almost all people would go for the 6%, but why? after all it's only 1% more that's not that big of a deal right? Well, you and I both know that it is a big deal. It is because after 30 years the extra 1% gave you over 140K more in returns (assuming no impact of taxes and it was reinvested). With UPS, we multiply the savings by the thousands upon thousands of drivers. Hope that makes sense.. and even though I don't agree with it, the numbers over the last few years show it works and is profitable. [/QUOTE]
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