Management EBO-Rumor
- Thread starter seagull4
- Start date
pretzel_man
Well-Known Member
Here is what I'm absolutely positive about. there will be many more district and region consolidations. This happened last year, and 1400 people were "freed up". The one this year will be at least as big.
I have heard nothing from my Atlanta sources about a buyout.
I wish I could guarantee you one way or another on this. My gut feeling is that there would NOT be a buyout. Here is why:
- There are no surprises in the economy. Its no worse or better than the management committee projected.
- Buyouts are expensive and previous ones have not produced great results
- Attrition is running at the same rate as previously projected
The management committee previously said no buyout is planned. Since nothing has really changed my guess is there is no buyout.
I wish I had a definitive answer. I guess we will see.
P-Man
brownsugar
Member
If they just did away with the early retirement @ 55, and said "go now or stay until you are 62", some of those sticking around might reconsider. It wouldn't cost UPS anything.
Catatonic
Nine Lives
Only problem is that the people that make that decision usually work until 56 - 58 years old ... but then again there are exceptions and Double Standards.
soberups
Pees in the brown Koolaid
The last thing we need in the management ranks is a bunch of bitter, hateful old men who stick around until age 62 because they have no other choice.
If we were going to make such a change, fairness would dictate that it only apply to future hires and not current management people. I would not want to work for a guy who thought he was getting out at 55 only to be told at the last minute that he had to put 7 more years in.
It would be interesting to explore the idea of "partial" retirement, whereby a management person would have the option of staying on in a part-time capacity and maintaining their medical benefits. I could see where we could use such people during peak or for other special purposes...they would draw a partial pension and maintain medical coverage, while being free to pursue other options.
D
Dis-organized Labor
Guest
I'm offering a management buyout to UPSSOCKS.
I'll give you $50. to go away
I'll give you $50. to go away
soberups
Pees in the brown Koolaid
$50? Hell, I'll bump that to $100!
D
Dis-organized Labor
Guest
Alright then, $150!
I predict something is done for those 55 plus - a financial nudge to move them on - of the management folk I know 55 or above they are hanging for 1-2 more years for a boost to their pensions - or for thier 401K and UPS Stock to re-inflate....the latter will happen - I think the company will try to bridge the pension gap.
negrosangre
Well-Known Member
This is too progressive and makes too much sense to be a UPS option. (But I like the idea!!)
Catatonic
Nine Lives
I just turned 55 so I am eligible for early retirement (with a 15% penalty).
At UPS, management is taught to anlyze and do financial analysis. That is working against UPS now because people do simple cost/benefit analysis of retiring now versus working until 60 or later.
A management person with 35 years of service
PROS
1) Get away from the pressure
2) Difference in take home pay versus Pension pay is not too great (probably 40% less)
CONS
1) Take a 3% penalty per year before age 60 (why incur a penalty if you want people to leave)
2) The National debt is going out of site (just like in the 60's and early 70's) and the logical way to retire the National debt is to "let" inflation go up. Since UPS pension is not COLA based, a few years of excessive inflation will erode your buying power to 50% or less.
3) What do you do in retirement? I guess one adjusts but it is a bit scary to me not to have job type responsibilities but I am beginning to warm up to that aspect.
This was therapeutic in a way as I try to make this decision myself.
I know the differences are even greater if one does not have 35 years in.
Catatonic
Nine Lives
At least in GA:
If you were part-time prior to 1977, those years count as 1 years.
After 1977 1yr of P/T = 1/2 year friend/T.
If you turned 55 you need to get with your inside sources about a EBO offer coming in January for management. I am aware of a two unit guy who was told to not take a lateral move becasue he would qualify for the buyout. I'm telling you it is coming. If you are over 50,I know it will be a combination of years and service. I do not know if it will pertain to single unit supervisors. That will be the big question.(Knowing the company,it will only take care of it's own) You will have a two unit guy,aged 50, waiving goodbye to a single unit guy who is 56,33 years with the company, as he goes out the door.
The buy out should be like union people, just layoff the partners that are not performing. The shareholders are taking a beating from UPS being top heavy. We have to many chiefs and not enough indians and the stock price shows it. Why pay a group of "deadwood" to retire when we can just lay off or fire. The stock will rise to FDX prices if we can pay people that work. Look at the Air Group bld, we have retired aircraft but no one in the DC8 or 727 work groups were layed off, just moved them over to other groups that were already overstaffed. We are overstaffed with high paid engineers that have their workload reduced to more efficient airliners but none were layed off just moved to other overstaffed groups.
D
Dis-organized Labor
Guest
A couple of points you make:
- Those that have been laid off were not "performing"?
- Laying off people will increase our stock price?
- The Engineering group has no more than 60 people in it. How many should we lay off to raise the stock price $30.?
- If we are really get rid of the "deadwood" and "underperformers", how come you're still with us?
- Are these "efficient" airliners, the MD-11's? The 20+ year old 757's? The super greast A300's? Oh, you must mean the 8 new 744's and two new 767's.
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randomUPSISer
Well-Known Member
That's been the official memo from up top. Have you heard differently?
Yes. Not because of any sizable savings, but because the street loves to see layoffs. It almost always boost a companies stock price because it translates to "cost savings" and management by denominator. The street loves denominator management styles. Instead of real value added, which is slow and takes time, denominator styles seek to cut cost, which results in fast profits. Not many day traders care about long term profits. They arent UPS stock holders, they are stock flippers. It makes sense they would prefer fast profits, not long term strategies. I'm glad to see we are interested in appeasing them though. Sure sets us up for long term success.
The number would have to be closer to 6000 though, not 60 for the street to take notice.
D
Dis-organized Labor
Guest
Random,
We have different views on street valuations, but I do agree (in part) with sizable anything for a stock to be affected, and then only for a very short period of time. Balance sheets can get shored up by selling off assets, etc., but it's revenue and margin that is the biggest factor. Management is but one of the many factors.
My point was that the OP's main attempt is to bring attention that 150 airline mechanics were laid off and no management.
He thinks there should be parity. What he doesn't realize is that we have frozen hew hires and over the last 10+ years, through attrition, each management person (inm the airline) has taken on more and more. I, in fact now do the job that was once done by four other managers (honestly). The regulatory environment and economics have been slowly tightened down over the last 10 making it that much harder to get things done. In one of my functions, I had a staff of 8 including myself, now I have 3.5 including myself and I also oversee three other functions.
pretzel_man
Well-Known Member
I know that I recently posted that I heard nothing about buyouts in 2010. I decided to reach out to more old contacts in Atlanta.....
I can guarantee that the rumors of district and region consilidations are true. Lots of people are working feverishly to get the planning done. I spoke to people that knew the exact number, but they would not say.
Again, this would mostly affect the staff functions.
I am also very, very certain that a big announcement is coming the first week in January. Expect a video to be played on January 7.
Whether that is a buyout or not, no one really knows for sure. The buyout rumors are getting very strong as well and maybe that is the January 7 announcement??
Right now, its looking like January 4th is a district consolidation announcement and January 7th is another one (likely buyouts??)
P-Man
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