Boiled, I think you're missing a big point.
In the late seventies, UPS went through a major growth period. Its when we expanded to the entire contintinental US. The people hired at that time are nearing retirement right now.
I heard that very high percent of district managers will be retiring in the next 5 years. This opens up slots for 22's, 18's, etc.
Your other point on no stock growth is valid. I think this is our biggest problem. It used to be that you worked hard all year, and at least when you saw the stock grow, you knew why you worked so hard.
We need to get the stock to grow. The company needs to grow.
The management committee tried to tie incentive to areas that spark growth... I guess we'll see if that works.
I hope it does, because we're not going back.
P-Man
P-Man -
You remind me a lot of myself and how I used to sound, always taking the company side, somewhat blindly or because I was in denial; or that I did not want to believe everything I was seeing was really happening. No offense, I think you're optimistic and trying hard to believe the company has your best interest in mind, but I think the sad truth is that this is not the case.
You cannot just sugar coat everything. The company IS screwing its low to mid management people thru compensation, MIP, advancement opportunities, pension and benefits. There is no doubt about that, and sometimes there simply is no "brighter side".
The "retiring baby-boomer" phenomenon is not exclusively a UPS thing. The problem is, UPS's long term management plan is not to fill these using a 1:1 ratio, and therefore depends on attrition to gradually make this reduction in the management ranks. The recent buyout offers, for example, are indicative of the company's plan to reduce grade 18 and above positions across the board moving forward.
And a high % of district managers retiring over the next 5 years means what to the FT sup or manager busting his ass? Let's see, 55 districts and say 80% of the current district mgrs retire in next 5 years...Wow, 45 whopping openings across the entire company over the next 5 years (9 per year)..Please.
J13501 pretty much nailed it on the head though. Yes, it is true that district managers and above are getting disproportionate increases in compensation compared to those below them, but the bottom line is that the biggest driver of UPS's cost cutting is the competition. The customer sets the price, we adjust to remain competitive, and everyone shares the pain. For so long it was, "If you dont like us, use the competition..Oh that's right, there is none". Now that is no longer the case, and the package delivery business has become a mere commodity. Good for the customer, bad for the shareholders and employees.
The company will never be what it once was. Not entirely anybody's fault, really. It's just the way the industry has evolved. It's economics. Changing times, fierce competition, less profit (and the fact that it's now spread more unequally than ever especially sucks).
It's sad to say, but the centennial celebration was more of a funeral as far as I'm concerned. That's why I quit about a week before the anniversary after almost 10 years in management. Havent looked back once. I was afraid to make the leap but I did and it was the best decision I've made in my life. I have a life now, making almost twice as much money working in a different industry and not getting treated like crap. Amazing concept. And for those who insist UPS is still "really good pay", I challenge you to go look. Unless you've been doing nothing but slanging packages all your life and your only options are FDX or DHL, you might be right. But if you've got a college degree or staff function experience, chances are you can get paid a lot better elsewhere. Do the homework. I did, and was pretty surprised.
Now I'm just waiting for the miserable stock to break 75 again so I can dump it without too much pain.