UPS can't compete because of high labor costs?

[Bubblehead]

No such thing as to much debt???
What are you a politician or a Fanny Mae loan officer?
That attitude is sinking this country.
Had YRC not bit off more than they could chew, they would have been better able to weather the economic storm while restructuring their corporate hierarchy reducing their compensation issues.

 

[deleted9]

what do you all think ups does with all of their money? Do you think scott davis sits on a pile of money, smoking cuban cigars and laughing at teamsters?

or do you think ups takes that money and invests it back into the business to improve technology and expand our service?

the only thing i think that is missed in this thread is reality. Ups is the highest priced carrier. We also have the dominant market share. So what does that add up to? Well, in a macro sense, it leads to ups shrinking in the usa and growing elsewhere. Is that ups' fault? Nope. That is what happens with competition.

ups has to be the driver of higher prices, because our costs structure is so much higher. The last pie chart i saw showed ups spends 75% of our money on labor. Fedex spends 30-40%. They make more money per package and pay their drivers less. Fedex has built facilities already to handle ups' market share. Their costs won’t raise that much more with carrying more packages. You all said it yourself; most of the fedex ground trucks you see are half full.

the only thing that fedex can do to increase efficiencies even more is to integrate their networks. That will then raise their driver costs to somewhere near where you are (especially if they are organized). Fred won't let that last part happen and as long as he continues to pay independent contractors, ups is toast when it comes to pricing.

and please, don't yell at me when your "great sales lead for hundreds of packages per day" doesn’t sell because ups could not undercut the competition on price.

a company cannot shrink to greatness........

 

[deleted9]

Did that pie chart breaking down the labor cost do so by hourly vs. management?
They had the right idea last year when they whacked those 1200 management positions.
I think the next wave of cuts will once again be in the managerial ranks.
The advent of the telematics system makes the oncar supervisor expendable.
Far less time will need to be spent in the field to identify issues and solutions making Center managerial staffing expendable.

are already seeing centers combined.
Whether it be through attrition, buy out, layoff, or termination, On Car Supes BEWARE!!!

Does anybody realize how many drivers have been laid off on a daily basis country wide???

 

[deleted9]

UPS makes between $2.5 billion profit (on a bad year) to $4.5 billion (on a good year) in clean profit. When was the last time UPS had a losing quarter? I don't remember a losing quarter in the 20 years I have worked for UPS. Give backs? NO WAY!!!!! I expect a reasonable contract that is both good for the company and the workers. Why are people offended when the little guy makes a descent living and not offended when the suits at the top make millions even when the companies lose money?

When ups had a bad year they still honored the collective bargaining agreement...... so when they have a good year everybody jumping up and down wanting more....... go figure

 

[clueless]

No such thing as to much debt???
What are you a politician or a Fanny Mae loan officer?
That attitude is sinking this country.
Had YRC not bit off more than they could chew, they would have been better able to weather the economic storm while restructuring their corporate hierarchy reducing their compensation issues.

Debt is manageable as long as there are sufficient earnings to cover the obligations To reiterate--the problem is the on the income statement, not the balance sheet. To use your Fannie Mae reference--whether or not you can afford a $5M house or a $500K house and the commensurate mortgage obligations depends on your income

 

[deleted9]

I think the problem is that UPS thinks this is a one-way road. take-take-take. If they want concessions on our contract during these hard economic times, (which I'm not completely opposed to) then its only fair that we should get extra raises and benifits during the good economic times.

you must be confusing ups with the union.......... its the union with the take, take, take, attitude.......

 

[moreluck]

well then, who's "gimme. gimme, gimme!"

 

[MrFedEx]

you must be confusing ups with the union.......... its the union with the take, take, take, attitude.......

Please remember that UPS competes on a playing field severely tilted in favor of FedEx. It's as if FedEx gets to start every scrimmage from the UPS 10 yard line while UPS starts at their own 20. This translates to lost business, layoffs in recessions (at UPS), and decreased profits (for UPS). Our labor costs at FedEx Express are far lower than yours at UPS and much, much lower over at FedEx Ground. Even with all of that against them, UPS pays you industry-leading wages that exceed ours by a factor of about 40% if you also figure in retirement. I agree with the concept that concessions in hard times should mean raises during good times, but however you look at it, UPSer's have a pretty good thing going.

Maybe Hoffa and the IBT should arise from their stupor and take the fight to FedEx and their government-sanctioned advantage instead of running away from a fight like the French?

 

[bbsam]

Well, MrFedex. Never miss an opportunity to interject your own agenda on a thread minimally tangental to it, eh?

 

[brownmonster]

When ups had a bad year they still honored the collective bargaining agreement...... so when they have a good year everybody jumping up and down wanting more....... go figure

UPS didn't have that bad of a year. They still made money. Many companies lost billions.

 

[MrFedEx]

Well, MrFedex. Never miss an opportunity to interject your own agenda on a thread minimally tangental to it, eh?

Directly related. UPS has a labor cost disadvantage relative to both Express and Ground. It's especially huge on the Ground side.

 

[Catatonic]

This thread....wow, just wow. Two drivers who live in Montana that work 40hr weeks think they are overpaid because they can afford a double-wide while their lowly neighbor cannot. Followed by basically 11 pages of so-called friend/T drivers agreeing that concessions are needed. Yeah guys, your new Hyundai sonata is definitely a sign of significant wealth that you obviously didn't earn. This is comedic gold...take this show on the road fellas, seriously.

Yeah man, this job should be a minimum wage job. Better yet...lets make it a P/T job like everything else at UPS. ::thumbs up::

I think this post illustrates very well why your reputation is in the red.

 

[MrFedEx]

Well, MrFedex. Never miss an opportunity to interject your own agenda on a thread minimally tangental to it, eh?

By the way. Do you ever notice the ads for Brownbailout.com all over this site? Wonder why that is and who is paying for them? Why would anyone be interested in portraying UPS as receiving a "bailout", even though the RLA is on the back burner for now.

 

[Bubblehead]

Please remember that UPS competes on a playing field severely tilted in favor of FedEx. It's as if FedEx gets to start every scrimmage from the UPS 10 yard line while UPS starts at their own 20. This translates to lost business, layoffs in recessions (at UPS), and decreased profits (for UPS). Our labor costs at FedEx Express are far lower than yours at UPS and much, much lower over at FedEx Ground. Even with all of that against them, UPS pays you industry-leading wages that exceed ours by a factor of about 40% if you also figure in retirement. I agree with the concept that concessions in hard times should mean raises during good times, but however you look at it, UPSer's have a pretty good thing going.

Maybe Hoffa and the IBT should arise from their stupor and take the fight to FedEx and their government-sanctioned advantage instead of running away from a fight like the French?

The man has a valid point, with exception being I'm not sure what Hoffa and the IBT can do to force the government to do the right thing.
The IBT doesn't have a chance in matching the lobby money that Fred Ex is spending.

 

[bbsam]

Probably a question for Cheryl. But kinda stupid if they're trying to convince UPSers that they are getting a bailout. Marketing to the wrong crowd and if they are paying for it, probably throwing money away.

 

[Anonymous 10]

When ups had a bad year they still honored the collective bargaining agreement...... so when they have a good year everybody jumping up and down wanting more....... go figure

Ups violates the contract on a daily bases in good times and bad.

 

[deleted9]

UPS didn't have that bad of a year. They still made money. Many companies lost billions.

I guess my only response to that is ups management know what they are doing........ What do you think........ This should be good

 

[deleted9]

Ups violates the contract on a daily bases in good times and bad.

Outside of the wage and benefit sections, the language in many, many, articles is very ambiguous, can be interpreted in many different ways....... Why do you think that is......

 

[deleted9]

well then, who's "gimme. gimme, gimme!"

I think that was me.... Lol

 

[brownmonster]

I guess my only response to that is ups management know what they are doing........ What do you think........ This should be good

I agree they know what they are doing in regards to turning a profit. Running the company to it's potential not so much. All I know is you got your MIP increased and your 401k match and I better get a damn turkey this year!!