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12 of this, a dozen of that....
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<blockquote data-quote="dannyboy" data-source="post: 678272" data-attributes="member: 484"><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">first off, I hate it when any ups employee loses their job, management or hourly. it sucks. but in todays world, with todays values in our company, even the sacred cows need to be evaluated when it comes to company survival. </span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">take a center, much like ours, with twin center managers, and around 100 drivers. word comes down that we need to cut costs, so they need to cut 4 drivers.</span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'Times New Roman'">cut the driver, and he gets to replace the bottom two people part time, so the bottom 8 part timers get the ax. </span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">a typical driver working a 9.5 makes aprox 75,000 a year, plus another 13,000 in benefits, retirement and insurance</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">part timer makes 9500 a year, no other costs for benefits, as he is at the bottom</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">the 8 part timers make a combined 78,500 a year, and they are now replaced doing the same job, by 4 drivers that are pulling down a bit over 71,000 each or 284,000 with benefits.</span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'Times New Roman'">the cut routes add an additional 190 hours of work that is then spread to the other drivers. now, assuming that 25 hours of that is drive time that is no longer spread to the 4 drivers, that still leaves 165 hours a week, all of which is overtime, or an additional cost of 360,000 dollars to the center’s cost. </span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">so these cuts have the following results for the center</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">savings to the preload for 8 lost employees <span style="color: red">78,500</span></span></span></p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">cost to the preload for using drivers instead <span style="color: blue">284,000</span></span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">savings to the delivery costs <span style="color: red">352,000</span></span></span></p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">extra costs in overtime <span style="color: blue">360,000</span></span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">so the net result in delivery is almost a wash cost wise, as it only costs about 8,000 in labor costs to cut those routes, a difference that is very easily made up by fuel and vehicle costs savings by cutting those four drivers.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">where the real extra costs come is when you take the drivers out of delivery, and put them into the preload.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">over all, cutting those 4 drivers makes sense, because by the time you factor in all the additional overhead, ups comes out ahead financially, quite possibly several hundred to thousands dollars a week in actual savings.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">for many many years, that was the first and only line of cost reductions in labor costs.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">now, it seems, the shoe is on the other foot</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">with the micro management at the very top, and virtually no command decisions made at the center level without district approval, management cuts were a sure thing to be next.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">center manager makes 80,000+ in wages, mip, and insurance benefits, so basically, well above 100,000.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">district people you can figure 120,000 or better a year wages and benefits.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">when one of our center managers is gone, there are a few things that get postponed or canceled. everything else is handled by other members of the staff. heck, outside of dealing with some labor issues, there is no change to operations when they are both gone.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">there is no, or very little increase in costs, because all the staff is salaried.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">so if we dump one of the center managers, we save upwards of 2000 a week plus. we can even increase the other center managers wage for all that extra "work" he is doing.</span></span></p><p> </p><p><span style="font-size: 12px"><span style="font-family: 'Times New Roman'">with all the cost cutting initiatives of the past, why are they just now getting around to figuring this one out? </span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">they have cut as much of the hourly workforce as they legally can under the contract. the only way to achieve additional costs savings is to trim the management load. no longer is the management positions beyond the reach of the ax, actually, they are the only positions left to cut, so to please the stockholders.</span></span></p><p> </p><p><span style="font-family: 'Times New Roman'"><span style="font-size: 12px">d</span></span></p></blockquote><p></p>
[QUOTE="dannyboy, post: 678272, member: 484"] [FONT=Times New Roman][SIZE=3]first off, I hate it when any ups employee loses their job, management or hourly. it sucks. but in todays world, with todays values in our company, even the sacred cows need to be evaluated when it comes to company survival. [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]take a center, much like ours, with twin center managers, and around 100 drivers. word comes down that we need to cut costs, so they need to cut 4 drivers.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [SIZE=3][FONT=Times New Roman]cut the driver, and he gets to replace the bottom two people part time, so the bottom 8 part timers get the ax. [/FONT][/SIZE] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]a typical driver working a 9.5 makes aprox 75,000 a year, plus another 13,000 in benefits, retirement and insurance[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]part timer makes 9500 a year, no other costs for benefits, as he is at the bottom[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]the 8 part timers make a combined 78,500 a year, and they are now replaced doing the same job, by 4 drivers that are pulling down a bit over 71,000 each or 284,000 with benefits.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [SIZE=3][FONT=Times New Roman]the cut routes add an additional 190 hours of work that is then spread to the other drivers. now, assuming that 25 hours of that is drive time that is no longer spread to the 4 drivers, that still leaves 165 hours a week, all of which is overtime, or an additional cost of 360,000 dollars to the center’s cost. [/FONT][/SIZE] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]so these cuts have the following results for the center[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]savings to the preload for 8 lost employees [COLOR=red]78,500[/COLOR][/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]cost to the preload for using drivers instead [COLOR=blue] [/COLOR][COLOR=blue]284,000[/COLOR][/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]savings to the delivery costs [COLOR=red]352,000[/COLOR][/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]extra costs in overtime [COLOR=blue]360,000[/COLOR][/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]so the net result in delivery is almost a wash cost wise, as it only costs about 8,000 in labor costs to cut those routes, a difference that is very easily made up by fuel and vehicle costs savings by cutting those four drivers.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]where the real extra costs come is when you take the drivers out of delivery, and put them into the preload.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]over all, cutting those 4 drivers makes sense, because by the time you factor in all the additional overhead, ups comes out ahead financially, quite possibly several hundred to thousands dollars a week in actual savings.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]for many many years, that was the first and only line of cost reductions in labor costs.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]now, it seems, the shoe is on the other foot[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]with the micro management at the very top, and virtually no command decisions made at the center level without district approval, management cuts were a sure thing to be next.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]center manager makes 80,000+ in wages, mip, and insurance benefits, so basically, well above 100,000.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]district people you can figure 120,000 or better a year wages and benefits.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]when one of our center managers is gone, there are a few things that get postponed or canceled. everything else is handled by other members of the staff. heck, outside of dealing with some labor issues, there is no change to operations when they are both gone.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]there is no, or very little increase in costs, because all the staff is salaried.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]so if we dump one of the center managers, we save upwards of 2000 a week plus. we can even increase the other center managers wage for all that extra "work" he is doing.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [SIZE=3][FONT=Times New Roman]with all the cost cutting initiatives of the past, why are they just now getting around to figuring this one out? [/FONT][/SIZE] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]they have cut as much of the hourly workforce as they legally can under the contract. the only way to achieve additional costs savings is to trim the management load. no longer is the management positions beyond the reach of the ax, actually, they are the only positions left to cut, so to please the stockholders.[/SIZE][/FONT] [FONT=Times New Roman][SIZE=3] [/SIZE][/FONT] [FONT=Times New Roman][SIZE=3]d[/SIZE][/FONT] [/QUOTE]
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