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Union / Fedex / UPS - An Analogy
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<blockquote data-quote="JimJimmyJames" data-source="post: 532750" data-attributes="member: 11425"><p>What might happen to UPS is what has hastened Detroit's fall: we are pricing ourselves out of the market.</p><p> </p><p>What do I mean? The big three American automakers can point to a multitude of sources for their present problems, but one of those unfortunately was a labor force that was very handsomely paid. </p><p> </p><p>In order to pay those wages and benefits, and yet still be competitive in the marketplace, pricewise, money that might have gone into research and development, modern assembly plants, higher quality materials, etc. had to be diverted.</p><p> </p><p>It can be argued, and I would agree with those who do, that it was not fair for our government to subject our domestic industries to compete with countries importing autos here who do not demand that their domestic industries meet the same safety, environmental, and wage standards that US companies must adhere to.</p><p> </p><p>Nonetheless, wages pressures have helped to destroy our domestic auto industry. And if anyone expects our government of globalists to stem the tide you can forget it.</p><p> </p><p>Now, us UPSers will not be able to point to foreign competition for any bruises we may sustain in our fight with FedEx ground.</p><p> </p><p>Do you know why UPS' buildings, vehicles, and equipment are used to the breaking point, and then used again? Labor costs. Why does UPS run us ragged. Labor costs.</p><p> </p><p>UPS, now more than ever, has examined every which way to to squeeze more out of dollar. It is because we are facing a competitor that is very formidable. The only thing really holding FedEx back now is the fact that they need multiple divisions, with their own seperate buildings, trucks, and drivers, to do what UPS does with one driver for almost all the services we both offer.</p><p> </p><p>But I don't even want to think about what will happen if FedEx ever consolidates it services, especially using the contractor model. I fear our costs in comparison will just be too high to be competitive.</p><p> </p><p>I hate to say this, I mean I really hate to say it, but we might have to rethink how much we ask for in our next contract. We are in the enviable position as the highest paid truck drivers in the world. And if you ask me if we deserve more I say yes! </p><p> </p><p>But, realistically, even though UPS makes billions of dollars in profit now, if we cannot offer our customers a competitively priced product in the future we are doomed.</p><p> </p><p>Let me put it another way, would any of you forgo some money to maybe drive a better, cleaner truck, have better work facilities that were modern and safer, and be able to deliver to you customers without having to treat them as the enemy of your time?</p><p> </p><p>Would you be happy with at least holding on to what we have? Or should we ask for ever more, but possibly losing it all?</p><p> </p><p>Just some thoughts to ponder.</p></blockquote><p></p>
[QUOTE="JimJimmyJames, post: 532750, member: 11425"] What might happen to UPS is what has hastened Detroit's fall: we are pricing ourselves out of the market. What do I mean? The big three American automakers can point to a multitude of sources for their present problems, but one of those unfortunately was a labor force that was very handsomely paid. In order to pay those wages and benefits, and yet still be competitive in the marketplace, pricewise, money that might have gone into research and development, modern assembly plants, higher quality materials, etc. had to be diverted. It can be argued, and I would agree with those who do, that it was not fair for our government to subject our domestic industries to compete with countries importing autos here who do not demand that their domestic industries meet the same safety, environmental, and wage standards that US companies must adhere to. Nonetheless, wages pressures have helped to destroy our domestic auto industry. And if anyone expects our government of globalists to stem the tide you can forget it. Now, us UPSers will not be able to point to foreign competition for any bruises we may sustain in our fight with FedEx ground. Do you know why UPS' buildings, vehicles, and equipment are used to the breaking point, and then used again? Labor costs. Why does UPS run us ragged. Labor costs. UPS, now more than ever, has examined every which way to to squeeze more out of dollar. It is because we are facing a competitor that is very formidable. The only thing really holding FedEx back now is the fact that they need multiple divisions, with their own seperate buildings, trucks, and drivers, to do what UPS does with one driver for almost all the services we both offer. But I don't even want to think about what will happen if FedEx ever consolidates it services, especially using the contractor model. I fear our costs in comparison will just be too high to be competitive. I hate to say this, I mean I really hate to say it, but we might have to rethink how much we ask for in our next contract. We are in the enviable position as the highest paid truck drivers in the world. And if you ask me if we deserve more I say yes! But, realistically, even though UPS makes billions of dollars in profit now, if we cannot offer our customers a competitively priced product in the future we are doomed. Let me put it another way, would any of you forgo some money to maybe drive a better, cleaner truck, have better work facilities that were modern and safer, and be able to deliver to you customers without having to treat them as the enemy of your time? Would you be happy with at least holding on to what we have? Or should we ask for ever more, but possibly losing it all? Just some thoughts to ponder. [/QUOTE]
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