I had a customer tell me a couple weeks ago "I dont pay for UPS shipping to have the post office leave it hanging on my mailbox" and I totally agree. It is a total sham to our customers and needs to be addressed in the next contract. You cant tell me the only way we can keep those accounts is by offering them basic service for cheaper shipping. I noticed this week Cabelas is using basic now as well. UPS is doing everything possible to eliminate routes and jobs.
Some items you mention need to be clarified.....
First, the customer (whether the shipper or consignee) did NOT pay for UPS ground service. They paid for Surepost. Surepost is a contract service and is a lower cost than UPS ground service. UPS picks up, sorts, transports, and delivers the package to the post office. USPS then makes the final mile delivery. This is supposed to take one additional day by plan....
This is NOT a service where UPS decides to have USPS deliver the package to save cost or cut routes and drivers as you say.....
This leads to the second point. Yes, the way to keep the accounts is to offer a cheaper service. FedEx already had Smartpost and we are losing customers to them. Customers are asking for a cheaper solution. We cannot hide from that.
Think about it. Why would UPS choose to offer a lower priced AND lower profit alternative if it were not necessary? Its being demanded by the marketplace.
Customers love our drivers. They should, since our drivers are the best in the world. But, its time for a reality check......
Our list mile delivery cost is by far the highest of all the options. FedEx Ground delivers 3 million ground packages a day and they are cheaper. USPS is also a competitor and they are cheaper.
I have NOT and have NEVER complained about the wages our drivers make. They are worth it, but not all customers are willing to pay that wage.
In order to stay competitive, we need to continue to offer services like Sureport, Mail Innovations, etc. that meet the market demand. We also need to keep our cost to serve as low as possible.
If we do not do these things, more volume will leave to non union competitors. This is the business reality of the situation.