what does a bankrupt yellow corp mean to ups

Discussion in 'UPS Discussions' started by coldworld, Feb 7, 2009.

  1. Coldworld

    Coldworld Well-Known Member

    there is talk about yellow roadway not doing so hot right now. Ups states they have 30% market share in ltl, which would make them the leader, but if they were to go bankrupt and then somehow restructure what would that mean to union ups members, Im not really talking about the possible growth of ups and fedex freight...more of our pensions since all three of their companies pay into the pension plan. Some folks talk about union companies going under just because of them being union, which I dont fully believe, but how much of yellows trouble is because of ups, freight and hundredweight service. Is a union carrier ups, helping to put other union carriers out of business?
  2. 29th Christmas

    29th Christmas New Member

    I believe a lot of union LTL's problems are work rule related
  3. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    I believe that it will only be a matter of time before UPS and FedEx will be the only 2 major companies left.
  4. JimJimmyJames

    JimJimmyJames Big Time Feeder Driver

    YRC Worldwide is the biggest LTL in America. I believe Yellow's many acquisitions in the past decade (Roadway, USF, etc.), recent record fuel prices, and a soft LTL market have combined to bring YRC to the brink. Add to that intense competition from mainly non-union LTL's for a shrinking piece of the pie and YRC is facing the perfect storm.

    UPS' role as a competitor with deep pockets definitely does not help YRC's position. What does all this mean for us as UPS employees? An opportunity to expand our business if YRC cannot deliver on service and price in the future. What does it mean for us as Teamsters? It will mean more Teamster jobs at UPS if YRC fails but it will also mean more non-union jobs being created at our competitors. Are the Teamsters better off as a smaller union? I cannot see that as being a good thing for us members in the long run.

    Unionism in this country is on the way out (especially if we do not get card check legislation passed). UPS, through technology (PAS/EDD), is preparing so that if we ever strike again they can scab and get rid of the Teamsters. If YRC goes under the unions strength in riding out any potential strike against UPS will be greatly diminished leaving us UPS Teamster employees in a very unenviable position. Thus ultimately I do not feel YRC going out of business is a good thing for us.
  5. BrownBlue

    BrownBlue New Jack

    I agree. They tried to hit us up to do sales leads for YRC volume. I will not do anything that will jeapordize another brother or sister. And yes I did not par-take in the DHL thing either.
  6. JimJimmyJames

    JimJimmyJames Big Time Feeder Driver

    That may be true but probably being union, period, is the biggest problem. Union companies pay their employees more, on average give them better benefits, and offer that dinosaur called a pension. In order for a union company to compete on price they have to keep their equipment longer, work their employees harder, and management must make less in executive compensation. That is why I believe that we must unionize as many competitors as possible to level the playing field for us and ultimately create a stronger middle class for America.
  7. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Pretty much my thoughts too. I'm always ragging on 705red to get FedEx unionized (he takes it pretty well).:peaceful:
    Our industry is one where the service can not be outsourced to an offshore location. While on a philosophical basis I find Card Check very un-American and reminiscent of Mafia type strong-arm tactics, I hope it passes because I am a selfish, self-centered person.:greedy:
    I understand my pension and to a large extent, my salary is crucially linked to unionization of our domestic competition.
    Granted , the cost of goods in the US will go up in price but Americans just have too much stuff anyway.
    Go card check!
  8. Coldworld

    Coldworld Well-Known Member

    so, regardless what people think about obama on other issues, how is a democratic president and congress going to help with growing the union. This is probably a blow on some level to fedex, even though they wont go union in the next 4-8 years, maybe more favorable decisions will come to ups with having democratic support.
  9. ol'browneye

    ol'browneye Active Member

    I have a friend that works as a sales rep at Averitt. He told me this week that there is a rumor that UPS/UPS Freight is going to buy YRC!
  10. brownIEman

    brownIEman Active Member

    So you did nothing to try and prevent the DHL volume from going to non-union Fedex? You have no desire to help your brothers and sisters at UPS?
  11. Big Babooba

    Big Babooba Well-Known Member

    I was talking to our Local's president about the Yellow/Roadway change of operations. He told me that New Penn (which is not affected) and Roadway are both well run companies. Yellow, on the other hand is a nightmare. Hopefully they can get their act together. Our pensions very well could be affected if they go under.
  12. Brown Guy

    Brown Guy New Member

    I dont think the government will let us buy YRC, They have to go out of business like DHL and everybody has to scramble to get there accounts:greedy:
  13. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    And more to the point...why would we want to buy.
    Buy customer base...we'll get our part if YRC goes under.
    Buy YRC employees and their expectations? Don't think so.
    Buy into their work standards which are probably not up to UPS Standards.
    When you buy a company, you buy all their problems and incompatiabilities with the UPS way of doing things.
  14. barnyard

    barnyard KTM rider Staff Member

    Put we would also get their facilites. Right now UPS Freight does not serve the entire US. Central Mn is as far north as they deliver, the rest is contracted out. I talked to a driver from Magnum as he was delivering a pallet with a UPS Freight bill of lading, he said that he has had days where 90% of his load is UPS Freight.

    I have turned in leads for Freight that were not followed up on because the businesses are too far north. Our center has had other leads cancelled because the terminal could not handle the volume this far north.

  15. Monkey Butt

    Monkey Butt You can call me Chappy Staff Member

    Good points TB...but I was replying specifically to YRC.

    UPS has billions in reserve. Should we buy another nationwide carrier and their problems or just expand as needed to get 100% coverage. Overnite has not been a problemless acquisition.
    I have heard that UPS Freight has 95%+ of the business opportunity covered. Why buy a company that duplicates 95% to get the last 5 %?
    BTW, Magnum for sale?
  16. 705red

    705red Browncafe Steward

    If yrc goes under our pensions would be at risk. I do not want to see ups purchase yrc! I am having enough trouble following up on our (ups) work that is being diverted through ups freight. Imagine the nightmare of having to look out for yellow, roadway, and holland work.

    Not to mention if yrc went under how much of that business could/would be picked up by non union competion!
  17. BrownBlue

    BrownBlue New Jack

    I turn in as many leads to get volume from Fred's Exploited as I can. I guarantee I've turned in more than you. I'd turn in more if some screw job sitting in front of a computer deemed that our center needed to purge a route or two. Now all our business stops are getting delivered later, no way to grow when you provide less service. Thanks IE department. You all should be the ones out there explaining to our costumers, why UPS's service has gone downhill.:biting:
  18. BrownSuit

    BrownSuit Active Member

    More over, why would we want the discounts that YRC has been giving their customers just to secure volume and cash flow. Many analysts are expecting that LTL Discounts will finally find a ceiling if YRC went out of business. That means more revenue and profit for everybody. Right now there is too much LTL capacity, imagine if 30% of that capacity disappears, it's going to be the same thing as DHL, everybody is going to try to gobble up the business offering pricing similar to what they were doing and then, no more. DHL customers even before Christmas would have been able to get similar pricing from UPS or FedEx, after the first of the year, they were just laughed at and told they waited too long.

    Sounds like we are interlining for the moment. Right now YRC is consolidating terminals, that means that they are dumping terminals left and right that they aren't using. One recent announcement had them saving $150 Million annually in lease costs and by selling buildings.

    Our competitors are gobbling up old YRC Terminals left and right, either to expand into bigger terminals or to break into areas that they previously weren't covering. I would imagine that we would take a similar strategy where appropriate.

    I know how much some loathe submitting sales leads for one reason or another. With the reason given here, think about it, would you rather your union brothers (UPS Freight) pickup the volume, or some non-union hack delivering the Freight.

    I'll be honest with you, expect only 1 out of 5 of your Freight leads submitted to be marked as sold, with only half of those generating volume points. Freight leads though they should be plentiful, especially from loyal existing Small Package customers. When they do generate points, it's a big payout for your AMEX and for your Route. It's been proven that it's easier to retain customers when they use both our Freight and Small Package services. In addition, there may have been packages, both inbound and outbound, that you weren't getting before that you suddenly start seeing.
  19. barnyard

    barnyard KTM rider Staff Member

    I do not know. They are a regional OTR out of Fargo, ND that also does LTL work out of a Twin Cities terminal.