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<blockquote data-quote="Ricochet1a" data-source="post: 1008737" data-attributes="member: 22880"><p>UPS isn't going to divert anything, anywhere...</p><p></p><p>FedEx Ground is on track to "divert" current UPS volume into ITS system. The more and more volume Ground gobbles up - the less and less capablity the IBT will have to negotiate contracts that maintain the disparity in compensation between UPS and Ground drivers. </p><p></p><p>UPS operates in the same marketplace as FedEx - and as Ground continues to grow with its business model (at the expense of UPS and therefore the unionized employees of UPS) the pressure will steadily increase on UPS to lower compensation offered to IBT members in order to keep UPS competitive (profits for their shareholders). </p><p></p><p>This is what the overwhelming majority of UPSers don't get - FedEx Ground may be a competitor to UPS, but the BUSINESS MODEL of Ground - as currently exists - is an even greater threat to the union members of UPS. UPS simply won't be able to offer the compensation packages they currently do AND compete against Ground in the future. Therefore, the compensation offered will initially stagnate, then UPS will have no choice but to rollback compensation in order to maintain its margin. It will be a race to the bottom, and UPSers won't like it one bit. </p><p></p><p>If the IBT thinks a strike would solve the problem - they would be very wrong. A strike would merely push MORE volume into Ground, making the situation even worse for UPSers. </p><p></p><p>The only solution for IBT members in UPS, is to get the IBT and other labor organizations to press for the business model of Ground to be somehow declared an "unfair trade practice" (inappropriate use of the independent contractor labor laws), and make the Ground drivers actual employees of FedEx. The Ground drivers would then organize in a heartbeat, their compensation level would increase, and the disparity between UPS and Ground cost structures would disappear.</p><p></p><p>Until and unless that happens, you (as a UPSer) can forget about increases in your compensation, and will be looking at increasing CONCESSIONS over the years, to keep UPS profitable while trying to compete against the business model of Ground. </p><p></p><p>The IBT has demonstrated a HIGH reluctance to get Express organized - but they have a very real stake in getting the Ground business model declared in violation of labor law (with whatever means available). Failure to do so, will only result in a race to the bottom in compensation offered for both UPS and Ground, and the unionized employees of UPS will have the most to lose in this race. </p><p></p><p>This is why UPSers have a VERY REAL stake in getting FedEx organized - their own compensation will be at risk in the very near term should FedEx remain non-union and the Ground business model continued unchecked.</p></blockquote><p></p>
[QUOTE="Ricochet1a, post: 1008737, member: 22880"] UPS isn't going to divert anything, anywhere... FedEx Ground is on track to "divert" current UPS volume into ITS system. The more and more volume Ground gobbles up - the less and less capablity the IBT will have to negotiate contracts that maintain the disparity in compensation between UPS and Ground drivers. UPS operates in the same marketplace as FedEx - and as Ground continues to grow with its business model (at the expense of UPS and therefore the unionized employees of UPS) the pressure will steadily increase on UPS to lower compensation offered to IBT members in order to keep UPS competitive (profits for their shareholders). This is what the overwhelming majority of UPSers don't get - FedEx Ground may be a competitor to UPS, but the BUSINESS MODEL of Ground - as currently exists - is an even greater threat to the union members of UPS. UPS simply won't be able to offer the compensation packages they currently do AND compete against Ground in the future. Therefore, the compensation offered will initially stagnate, then UPS will have no choice but to rollback compensation in order to maintain its margin. It will be a race to the bottom, and UPSers won't like it one bit. If the IBT thinks a strike would solve the problem - they would be very wrong. A strike would merely push MORE volume into Ground, making the situation even worse for UPSers. The only solution for IBT members in UPS, is to get the IBT and other labor organizations to press for the business model of Ground to be somehow declared an "unfair trade practice" (inappropriate use of the independent contractor labor laws), and make the Ground drivers actual employees of FedEx. The Ground drivers would then organize in a heartbeat, their compensation level would increase, and the disparity between UPS and Ground cost structures would disappear. Until and unless that happens, you (as a UPSer) can forget about increases in your compensation, and will be looking at increasing CONCESSIONS over the years, to keep UPS profitable while trying to compete against the business model of Ground. The IBT has demonstrated a HIGH reluctance to get Express organized - but they have a very real stake in getting the Ground business model declared in violation of labor law (with whatever means available). Failure to do so, will only result in a race to the bottom in compensation offered for both UPS and Ground, and the unionized employees of UPS will have the most to lose in this race. This is why UPSers have a VERY REAL stake in getting FedEx organized - their own compensation will be at risk in the very near term should FedEx remain non-union and the Ground business model continued unchecked. [/QUOTE]
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