UPS Economic cleansing!!

[BigBrownSanta]

I'm hesitant to bring it up, but a word I have been seeing more and more on the financial news websites is deflation. Basically that means that goods become cheaper and cheaper, but no one is buying.

That is a cycle we do not want to see. IMO, if GM fails, that may be the ripple that starts a domino effect.

Dannyboy is right, people are not spending money, companies will start cutting prices, people will continue to postpone or stop purchases, companies will lay off more employees, people see or fear the layoffs and will still not spend money, and the cycle starts over again. It's a hard cycle to get out of.

 

[barnyard]

I am surprised that the Big 3 or at least GM does not file Chap 11. They could then rewrite their labor contracts, dealer contracts and close ineffecient plants without paying off the unions.

Although, I would imagine that would also cut into executive compensation and their private jet fleet. That may be why we have not seen a filing....

TB

 

[barnyard]

I would also imagine that if Fed Ex were to see work rules change that would allow unionization and the elimination of contractors, we will see them file also. They could use the filing to eliminate many contractors and combine their networks for more efficiency.

If Fed Ex were to combine and eliminate a pile of debt through Chap 11, UPS should be worried. That would be a very formidible competitor.

TB

 

[kingOFchester]

I am surprised that the Big 3 or at least GM does not file Chap 11. They could then rewrite their labor contracts, dealer contracts and close ineffecient plants without paying off the unions.

Although, I would imagine that would also cut into executive compensation and their private jet fleet. That may be why we have not seen a filing....

TB

If they file for chapter 11....it would hurt them as not many people would buy a car from a company that may ot be there.

 

[BigBrownSanta]

If they file for chapter 11....it would hurt them as not many people would buy a car from a company that may ot be there.

Exactly. That was reported yesterday. Who would buy a car if the company that warranties the car may be going out of business? Chapter 11 would be the end of GM.

 

[barnyard]

It seems to have been pretty successful for the airlines....

TB

 

[kingOFchester]

It seems to have been pretty successful for the airlines....

TB

I would buy a ticket from an airline that was in chapter 11. Chances are they will still be flying by the time my trip comes about. However, buy a 20-50k car from a company that potetialy may not be there to honor a warranty......not worth the gamble.

 

[UpstateNYUPSer(Ret)]

It seems to have been pretty successful for the airlines....TB

The government has protections in place for the consumer to ensure that they will not be stranded due to an airline discontinuing operations.

 

[1timepu]

It is a slippery slope when trying to improve your own station in life by dragging others down. FedEx/card check/etc.

Don't kid yourself for a moment - UPS management would drool all over themselves if given the chance to copy FedEx business model. Any company, given the choice, would pick Independent Contractors over Union.

As for Obama & campaign promises - Please look at the track record of politicians, promises, & the last 200 years.

Every thread that talks about the poor economy, UPS layoffs, etc., someone always chimes in with "UPS has been around for 100 years, two world wars, and a partridge in a pear tree", etc. That is all well & good, but not the point. Nobody has any doubt that UPS will be there in 10 years - I'd just like to know that I will be also.

UPS is not trying to improve its position with Fed Ex, in fact I think it would be disastrous for UPS if Fed Ex disappeared, but Fed Ex was not involved in the ground business until we decided to strike, while yes the card check would hurt Fed Ex, they could not afford to keep the ground division, which UPS had before Fed Ex. So it would be ours again, and who said playing on a level field was unfair, unfair is Fed Ex hiding under the Airline industry, while UPS is considered a Trucking industry. Doesn't Fed EX and UPS have mirror business's? Then why is Fed Ex able to fall under the Airline Act? The card check will take care of this, and even out the competition(rules). I don't consider that a slippery slope.

 

[Mike Hawk]

njdrver
Junior Member

Join Date: May 1971 <-- lol joined 1971
Posts: 3
Rep Power: 0

 

[brownmonster]

I enjoy his posts every 12 1/2 years or so

 

[trplnkl]

UPS is not trying to improve its position with Fed Ex, in fact I think it would be disastrous for UPS if Fed Ex disappeared, but Fed Ex was not involved in the ground business until we decided to strike, while yes the card check would hurt Fed Ex, they could not afford to keep the ground division, which UPS had before Fed Ex. So it would be ours again, and who said playing on a level field was unfair, unfair is Fed Ex hiding under the Airline industry, while UPS is considered a Trucking industry. Doesn't Fed EX and UPS have mirror business's? Then why is Fed Ex able to fall under the Airline Act? The card check will take care of this, and even out the competition(rules). I don't consider that a slippery slope.

\
Wow nj you are all over the place on this post. In one sentence you say it would be disastrous for UPS if FedEx disappeared, then say UPS would regain the lost volume to FedEx ground. Make up my mind, FedEx going away is good or bad for UPS?

 

[babboo25]

Layoffs?? Who is going to cover vacations, call ins and comp?? Not to mention the extra DHL volume we in Illinois are already getting. The new 9.5 rules start in January. Plus oil is down and UPS will beat estimates for this quarter, I believe due to lower fuel costs. There are alot of big chain stores like Lowes and Home Depot closing some stores. Good, its there own fault for building 2-3 stores in a 50,000 population community. We used to have 1 of each, they would recieve anywhere from 50 to 100 pieces daily. Then when they added another store it was 25-50 at each store. If we all continue to shop at Walmart and Sams, keep on buying Japanese cars, its never going to improve, how many Chevy's do you think are cruising around in Japan??

 

[1timepu]

Referring to Fed EX disastrous, if they totally went under, UPS would = monopoly to the Government which in turn, they would break UPS up! That is what i Mean, what would be good Fed Ex, jettison the ground business when card check is passed, that would be volume regained from Fed Ex. And as for so few post, I cant help it if I work so many hrs for UPS, in fact they our paying off my house, thank you.

 

[Cementups]

If Fedex went under on it's own accord then the governemnt coudl do nothing. Now if UPS tried to buy out Fedex, then that is a different story.

 

[trplnkl]

nj, I wasn't commenting on how few posts you have, just that you seemed to contradict yourself in just one post.
Let's carry out your scenario a little further. If FedEx went out of business (which they probably won't) and the government wanted to break up UPS for the monopoly purpose, how would they break it up? One company air and one ground, or is there another example?

As far as all the hours you are working....keep it up, there are millions on welfare depending on you.

 

[Cementups]

Kind of a sidebar here.. StupidSup decided to give me a bad reputation mark (my first on here EVER) instead of wearing some thick skin and taking my remarks with a grain of salt. Cowardice if you ask me. who would have thought of anything less from a Sup with a chip on his shoulder.

 

[705red]

I say lets see how red we can get super sup!

 

[Mike Hawk]

Who cares about an internet number next to your internet name on an anonymous internet forum?

 

[Catatonic]

Kind of a sidebar here.. StupidSup decided to give me a bad reputation mark (my first on here EVER) instead of wearing some thick skin and taking my remarks with a grain of salt. Cowardice if you ask me. who would have thought of anything less from a Sup with a chip on his shoulder.

SuperSup can not give anyone a neg rep. Same as TOS.