- UPS posted another quarter of solid results and, more importantly, finished a couple important capital projects.
- It trades at a meaningful discount to its average valuation.
- UPS remains an ideal choice for long-term minded income investors.
- United Parcel Service is a leading multinational courier delivery services company.
- The company’s transformation initiatives should help improve its cash flow.
- UPS’s shares are currently trading below its historical average but higher than FedEx.
United Parcel Service says it reached a tentative labor contract covering more than 1K aircraft mechanics after more than four years of negotiations, providing annual wage increases and preserving health coverage without employee premiums.
The agreement sets up a critical series of votes for UPS union members on three contracts that represent more than 260K covered employees; in June, UPS agreed to a new five-year deal covering workers in small package operations, followed a few weeks later by a five-year deal covering UPS workers who haul freight.
The work stoppage centered around two contractors: Material Handling Systems Inc., a Louisville-area contractor that is building the UPS hub, and Contractors Resource Inc., a Texas staffing firm, which Dangerfield said employed him and his co-workers.
The last straw, Dangerfield said, was when the manager in question became angry and forced some Hispanic workers to leave after no one agreed to translate for him during a safety meeting. Dangerfield said the manager had a reputation for treating white workers well, but was “hard on everybody else.”
MHS in a statement called the dispute that led to the walk off a matter of “confusion.”