'Very Different Situation'

Discussion in 'The Archives' started by brownshirt, Aug 1, 2002.

  1. brownshirt

    brownshirt Guest

    'Very Different Situation'
    Struggling unionized LTL carriers
    post anemic 2Q earnings, eye
    Teamsters pact

    The organized, long-haul trucking industry cannot afford the type of lucrative contract increase won by the Teamsters union at $30 billion package giant United Parcel Service, a top LTL chief executive said last week.

    Yellow Corp. Chairman, President and CEO Bill Zollars said "in many ways the Teamsters know that" the beleaguered unionized sector cannot afford to match the recently agreed upon six-year pact with UPS that guarantees a 22 percent wage boost. A UPS driver, currently earning $23.03 an hour, will earn $28.05 by 2008. Such a wage and benefit boost would cost a unionized freight company with 20,000 Teamsters an additional $60 million annually in labor costs.

    Unlike UPS, which earned $2.4 billion last year in a down economy, the unionized freight sector is struggling. Last year, ABF Freight System led the Big Four with $79.4 million operating income. Roadway Express earned $30.8 million last year with Yellow Corp. earning $22.7 million and Consolidated Freightways losing $104.3 million.
     
  2. trouble1903

    trouble1903 Guest

    I understand what you are saying, but think about this. Not may of the other carrier's you mentioned have the number of empolyees UPS's does. Now the number speak volumes!!!! 60 million over 6 years is 10 million a year. Divide that by 20,000 teamsters only comes out to $500.00 per year per person. Divided by 52 is $9.61 per week, divided by 40 is 24 cents an hour.

    If you are big enough to have 20,00 people work for you, you have to be big enough to 20,000 people a decent raise.