Pretzel, if you really believe that, I've got a few bridges to sell you.
First... Let's get to the glaring issue. Although UPS said we'd get a partial MIP in Dec 2011 it's basically from the 2012 payment. We are losing the 4th qtr 2011 in MIP. Gone. Also they are spreading the 2011 MIP over two calendar years, partial payment in 2011 and the rest of the yearly MIP in 2012. So UPS shows less cost for mgmt for two years with this one change alone.
Let's see what else we can all remember we've lost over the years.
Here's from what I can remember.
1. Medical benefits. Used to have no medical costs. I pay out over 500/month between medical coverage and flex to pay for my family's medical cost. Usually, I still have out of pocket beyond this. That's 6,000 per year I make less then before.
2. MIP used to give us an interest free tax free loan on the amount of the social security tax from the MIP benefits. UPS loaned us back the 6.2% of social security tax and took it back over 10 months as an interest free loan.
3. Holiday turkey - not much money. but a nice tradition gone.
4. Vacations.. My first year at UPS, I had no vacation, but I could borrow one from the next year. All vacations taken in a year were earned the year prior. Magically one year they changed it and vacations are earned in the year they were taken. Now the liability they took off their books benefited UPS, but we didn't get a payout from the vacation weeks we were owed. Granted this only negative affects us if we quit. If we retire we can still get the last year of vacations. (how long will it be before that is gone?)
5. Mystery MIP numbers. Does anyone truly believe that if we had used the old formula of 15% of the profits vs the mgmt payroll we wouldn't have had a much higher MIP these last few years?
6. MIP -now partially given in RSU. If you stay with UPS, not too big a deal. But for anyone who leaves, they lose a lot of stock in form of RSU's that disappear.
7. One year of no raises. This was something that still affects us since our base is always lower then it otherwise should be.
8. Expense acct. Used to be all miles were paid at the IRS max level which now is $.50/mile. I forgot when, but now after 1,000 miles, the reimbursement is $.19 per mile.
9. G.O. closures - Corporate relocated certain high level mgrs (district mgrs) who in effect stayed in the new district structure. But all other people now just has a new work location and has to pay for the extra long commute themselves. Or people moved themselves to keep their job.
10. The list can go on.. But I just get more upset as I write these down.
Almost all the time they do this, it is
A. To better align UPS with the competition.
B. No cost changes to employees\UPS. Just redefining how we do things (Pretzel).
In fact, it's to reduce cost on the back of mgmt. They can get away with it due to poor economy. But I see a big exodus when the economy rebounds and no reason for a new supv to want to stay. I see getting new supervisors will be more and more difficult.
Short term. I think for UPS this is good for them. In 10 years or so. I think they will wonder why the mgmt talent has gone downhill.