Saving UPS

[brownboxman]

When the economy started to tank, we were given PCM's on how UPS had endured the Great Depression and how all UPSers came together and worked hard to help the company through. Ok I am a grown intelligent person, I understood the need to be a part of a plan to help this company compete in a very competitive environment.

Fast forward to present time. UPS last quarter 37% gain! In talking to our center manager he is being told to shoot for 9.2-9.5 hrs per day per driver. If profitability has returned, why the heal to the head of the workforce? UPS is loosing what little credibility it had as an employer. I will never recommend employment at UPS to anyone. The rewards are not there anymore to out weigh the treatment we receive. I am a driver of 22 yrs, I fully understood the job I was signing on for. But the pendulum has swung to far, I fully intend to retire before the next contract in 2013. I feel sorry for those of you who will still need to work into the next contract cycle. Upper management at UPS has made this a different company now. I think there was a certain amount of respect for hourly in years past, and now there is nothing to indicate we have any value what so ever.

 

[Just Numbers]

My 2 cents. Many of the UPS drivers live a good lifestyle and that lifestlye entails working 9 hrs or more to maintain it. I'm not saying all drivers but, I will bet it is a majority. I know it is tough on the family and the body as I lived through it but, If UPS could magically get every driver off the clock in 8 hrs...do you realize how many would be complaining. Secondly, the 37% gain had very little to do with an increase in domestic volume and, if compared to the same qtr 2 yrs ago domestic volume is probably down.

 

[brownboxman]

Just thanks for the reply. But it involves more than hrs, it is an attitude that is unmistakable we are getting now days. Part of it comes from the treatment of center level staff by upper management.

 

[Shifting Contents]

I think the change in attitude is coming from higher up. At my center we are getting a lot of apologies from local management. "Sorry but this is what we have to do." Anything from discipline to stops per car. A lot of drivers are going insane. I fortunately get enough craziness at home so I ignore it at work. Nothing compares to the fury of my wife. UPS management is a lion cub compared to my wife.

 

[over9five]

Nothing compares to the fury of my wife. UPS management is a lion cub compared to my wife.

*****WARNING: THREAD HIJACK*****

So SC, why is your wife so enraged?

 

[stevetheupsguy]

I think the change in attitude is coming from higher up. At my center we are getting a lot of apologies from local management. "Sorry but this is what we have to do." Anything from discipline to stops per car. A lot of drivers are going insane. I fortunately get enough craziness at home so I ignore it at work. Nothing compares to the fury of my wife. UPS management is a lion cub compared to my wife.

This is where the blame game comes into play. I'm only harassing you because I'm getting it from above/being told to do it from above. Each person has a right to control his/her own actions and reactions. Just sayin.....

*****WARNING: THREAD HIJACK*****

So SC, why is your wife so enraged?

I think it has to do with the initials SC. Tell me about it, brotha!

 

[Just Numbers]

Just thanks for the reply. But it involves more than hrs, it is an attitude that is unmistakable we are getting now days. Part of it comes from the treatment of center level staff by upper management.

Hey, just responded to the first two items in your post. Since you gave them prioity I did also. There has always been pressure from above. I've always got that impression from the sups that rode with me throughout the years and talking with the different managers that came along and departed.

 

[purplesky]

I have met many people on the street who have tried to work at UPS or they know someone who gave it a try.

Its no secret about how UPS treats their workforce.

I am suprised its taken you 22 years to come to this conclusion. You are lucky to be so close to 25 and out.

 

[toonertoo]

I have met many people on the street who have tried to work at UPS or they know someone who gave it a try.

Its no secret about how UPS treats their workforce.

I am suprised its taken you 22 years to come to this conclusion. You are lucky to be so close to 25 and out.

Amen to that, it is harder every day.

 

[helenofcalifornia]

Makes you appreciate the weekends that much more.

 

[Re-Raise]

I guess it is because at the top levels decisions are made that they feel will do the most to increase value for the shareholders.

Many of these decisions make life more difficult for the employees.

I own stock in UPS as well as a lot of other companies. I cash the the dividend checks and like it when my investments go up in value because a company has increased it's profits.

But at some point they have to ask at what cost? Are we really better of as a company in the long term with a disgruntled workforce, to appease the markets and reward fat cat investors?

I think we all know the only thing management can really do to improve profits at UPS is increase demand, which is mostly out of their control, or improve the productivity of it's work force.

Our productivity has about peaked , and therein lies the problem

 

[TUT]

Fast forward to present time. UPS last quarter 37% gain! In talking to our center manager he is being told to shoot for 9.2-9.5 hrs per day per driver. If profitability has returned, why the heal to the head of the workforce?

There is no common sense in this for the workers anymore. Hello, I am an outsider that looks over this board and the other day it popped in my mind... "Are all corporations today the same?". I like yourself work for a company where the golden days are well behind us. You know when skies where blue and laced with perks and niceties, just because we had some extra cash. So what I did was find a company that is today in their golden days. I picked BP, leave out the spill for a second but they profit 63 million dollars a day, a day! True, look it up.

So I wanted to see what their employees said about their management and it's the same exact story coming out of there then a company that isn't near as fortunate today as they are. Actually I expected that, but it was still sad to see. The corporate mentality simply exudes into all companies. It doesn't matter if UPS made a billion per day, they are going to be looking at ways to maximize every little aspect including you. The fun is gone, the music has died. We are all numbers, as mankind has reduced him self to a number. Golf clap.

Before I leave as an outside lurker I can say it may seem like good therapy for the fellow UPS'ers to unwind here. IMO you guys are letting things leak to the outside world which does you no good and can be used against you (not personally) as a whole. I'll probably take some heat for saying that, but you aren't seeing it from an outsiders perspective. Many things within this forum, which you may find good to share are probably best left in private within UPS itself. I could be wrong.

 

[Shifting Contents]

She's a woman. Need I say more? She's not enraged all the time just knows how to do it when I piss her off. That and she doesn't like my girlfriend (just kidding)

 

[TUT]

But at some point they have to ask at what cost? Are we really better of as a company in the long term with a disgruntled workforce, to appease the markets and reward fat cat investors?

I think we just maybe nearing that point as a country. What you are seeing isn't a UPS issue, it's a open market issue.

 

[TUT]

I guess it is because at the top levels decisions are made that they feel will do the most to increase value for the shareholders.

That is correct and it's sad that we care more about the nameless faceless people then those with names and faces and are our working brothers and sisters. But yes that is what is happening everywhere. I bet there is a prophecy about this somewhere.

 

[bumped]

But at some point they have to ask at what cost? Are we really better of as a company in the long term with a disgruntled workforce, to appease the markets and reward fat cat investors?

The top guys at UPS are some of the "fat cat investors". Scott Davis gets millions in stock (about 4 million). That's the way the system is designed to squeeze every last penny of profit.

 

[TUT]

The top guys at UPS are some of the "fat cat investors". Scott Davis gets millions in stock (about 4 million). That's the way the system is designed to squeeze every last penny of profit.

That is correct, the top people at large corporations make more money from their own company stock options, then anything else. Perhaps a law should be in place where you can't hold stock in your own company of employment, that would change the whole perspective of they way you are being managed. Not swearing that this is thee solution, but something with the way the market is working these days has created a world we didn't want, it's being used against Joe Six Pack.

 

[UpstateNYUPSer(Ret)]

I would think that owning stock in the company where you work would mean that not only are you committed to that company but that you are willing to invest your hard earned money in the future of said company. It is the Joe Six Pack's who sit on the sidelines and reap the benefits from those who put their money where their mouths are.

 

[TUT]

I would think that owning stock in the company where you work would mean that not only are you committed to that company but that you are willing to invest your hard earned money in the future of said company. It is the Joe Six Pack's who sit on the sidelines and reap the benefits from those who put their money where their mouths are.

Joe Six Pack gets the job society needs done. He shouldn't have to also be a Wall Street Expert, just like a Wall Street Expert doesn't have to know the inner workings of say a UPS. Employee's would still be free to invest in other companies and others in you. That money can be useful to said company and investor alike. My salary at my place of employment is all the commitment ever needed on this end of the keyboard. If we are at a point where that isn't enough and the stocks are what it takes to make me happy at work, then we failed in a whole 'nother perspective. But I do agree the top brass of many corp's it now seems that the stock is all that makes them committed. That's not good.

 

[clueless]

...the 37% gain had very little to do with an increase in domestic volume and, if compared to the same qtr 2 yrs ago domestic volume is probably down.

Yep.

I'm not sure exactly which metrics the OP is comparing here--eps growth QoQ was 35% while net income grew at 32% QoQ--btw, the higher eps growth rate (vs. net income) is directly attributable to share repurchases which were discussed in a previous thread. However, those numbers were what The Street calls 'easy comparisons'--a quarter marked by fairly normal typical results compared to the carnage of the last year as we were still mired knee-deep in the "Great Recession."

Even comparing last year's numbers (i.e., the easy comparsion) and looking specifically at domestic operations as you suggest, total domestic revenues were up only 2.2%, average daily package volume was basically flat (up a mere 0.4%), operating profit from domestic operations was up approximately 17% on an adjusted (pro forma) basis.

Comparing the MRQ to the quarter 2 years ago (Q1 2008)--things are not so upbeat:

For the company as a whole:

Revenues down 7.5%
Operating Profit down over 30%
Net Income down over 41%
Eps--basic down 38%
Eps-diluted down 39%

For US Domestic Package:

Revenues down over 8%
Operating Profit down over 41%
Average Daily Volume down 4%
Average Revenue Per Piece down 3%