Yellow reported a big 2nd quarter loss and the article say customers are moving faster than a DHL van going over a cliff. It seems they have a Toyota contract and it is almost over also. Since YRCW doesnt have airplanes I have never really check into them but the article says Union employees are taking pay cuts and pension cuts. I wonder if they are ready for a takeover or would it be better for them to end up like DHL?
yrc Worldwide
- Thread starter airbusfxr
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upssalesguy
UPS Defender
better to end up like DHL. their technology and network is outdated, and UPS Freight could better serve those customers.
YRC has been cutting prices to maintain volume (see DHL) and no one wants that cheap freight. if they go out of business, the entire industry will benefit (all companied wont have to keep cutting prices to win volume, and profits will increase for everyon). YRC carries 30% of the LTL market and are the largest player by far. them going out of business is what the transportation industry needs.
YRC has been cutting prices to maintain volume (see DHL) and no one wants that cheap freight. if they go out of business, the entire industry will benefit (all companied wont have to keep cutting prices to win volume, and profits will increase for everyon). YRC carries 30% of the LTL market and are the largest player by far. them going out of business is what the transportation industry needs.
UpstateNYUPSer(Ret)
Well-Known Member
From what I have read thus far the biggest potential loser would be the mulit-employer pension plans in which YRC employees participate.
upssalesguy
UPS Defender
which, i understand, UPS is not longer a part of.
UpstateNYUPSer(Ret)
Well-Known Member
I may be mistaken but I am pretty sure that the YRC employees up here are in the same pension plan that I am. I am not 100% sure on that, though.
upssalesguy
UPS Defender
did central states only cover some of the employees at UPS? i really have no clue how any of that works.
it sucks all these companies are all part of a plan, that doesnt seem fair to the companies that survive.
brownmonster
Man of Great Wisdom
Central is one of about 30 some plans UPS people participate in.
upssalesguy
UPS Defender
how many are co-mingled with YRC or other struggling companies?
Dustyroads
Well-Known Member
The Central States Fund was the largest of the health and welfare funds which provide pension and health insurance for UPS workers. When UPS pulled out of this fund last year, YRC became the largest remaining contributor in that multi-employer plan. Just last month the Teamsters agreed to take a lien against YRC property for payment of their monthly contributions for the next year and a half. If YRC fails, the Central States fund will not be far behind. All Central States teamsters who retired before this last contract will be greatly impacted.
For example, a UPS driver with 30 years of service at age 62 who retired before this contract would see their monthly pension benefits suddenly decrease from $3,000 a month to the $1,000 maximum guaranteed by the Federal pension insurance plan. That would affect many of our UPS retirees greatly.
Salesguy, you are about as shallow as a kiddie pool. You spout off, YRC failure would be great, UPS freight will get all of that business. Such a failure would impact hundreds of thousands of retirees across the country including many UPS retirees. To see this as a good thing is a bad thing.
For example, a UPS driver with 30 years of service at age 62 who retired before this contract would see their monthly pension benefits suddenly decrease from $3,000 a month to the $1,000 maximum guaranteed by the Federal pension insurance plan. That would affect many of our UPS retirees greatly.
Salesguy, you are about as shallow as a kiddie pool. You spout off, YRC failure would be great, UPS freight will get all of that business. Such a failure would impact hundreds of thousands of retirees across the country including many UPS retirees. To see this as a good thing is a bad thing.
upssalesguy
UPS Defender
shallow? this is business, son. more UPS business...more UPS employees.
i guess that is shallow, but we compete against them everyday.
i guess that is shallow, but we compete against them everyday.
Dustyroads
Well-Known Member
yes, it is shallow, and exhibits your lack of concern for anyone except yourself and the corporation
upssalesguy
UPS Defender
i do appolgize if i offended anyone with my post, but....do you think it's fair for UPS to be paying to pensions of other failed companies? it BLOWS that UPS retirees would be screwed....maybe that can be part of a new contract? i really had no idea UPS employees were still in the central states fund...excuse my ignorance.
i work hard to make sure all retirees have a good future...that includes my own.
i work hard to make sure all retirees have a good future...that includes my own.
Dustyroads
Well-Known Member
salesguy, maybe you don't realize that if the central states fund becomes insolvent, ups will have to pay all of central states obligations for pensions for all current workers. It would mean millions and millions of dollars of new obligations for ups. How do you like them apples, son?
upssalesguy
UPS Defender
dusty, is that true? didnt we pay to withdraw from the CS fund? are you saying if we are better than our competitors, it hurts us in the long run? really, i dont want to get into a pissing match...i didnt mean to start another flame war with another poster on this board.
i like apple juice?
i like apple juice?
Dustyroads
Well-Known Member
Yes, salesguy, I find it incredible that as a management person you have no idea what the last contract was all about. The removal of UPS from the plan only applied to future obligations. Every ups worker who has worked before Jan 1, 2008 is affected. And in the new contract UPS promised to guarantee Central States obligations to any worker employeed on that date. For me, with 29 years in with the central states on jan 08, it would mean $2,648 a month extra that UPS would have to provide me for the rest of my life. Surely you can do the math.
Catatonic
Nine Lives
That would be for only 26 months actuarially.
Dustyroads
Well-Known Member
Hoax, I guess that depends on how long I live after age 65. I believe a defined plan only uses an actuary to calcuate the health of the plan, or whether there is enough money left, estimating the plan's members' ages and estimated life expectancy.
Regardless of how you want to measure it, it would be a substantial additional cost to ups if the central states plan fails.
Regardless of how you want to measure it, it would be a substantial additional cost to ups if the central states plan fails.
upssalesguy
UPS Defender
dude, i am in sales...i do not have to nor do I really want to know the entire contract. i am already floating between the drivers and the center teams- some things you dont want to be a subject matter expert on.
i CAN tell you every one of our services...from freight, to supply chain, to small package, to brokerage, to technology, to finance, to customer service, etc...and the competitions comparable services.
Dustyroads
Well-Known Member
salesguy, i'd think you'd want to know as much as you could, since you are posting on the subject, and since it has a potential for costing ups millions of dollars.
Catatonic
Nine Lives
There was a thread a couple months back that said the Teamster's Pension plan on average paid 26 months before the retiree died. I guess that was pretty vague reference ... sorry.
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