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Brown Cafe UPS Forum
UPS Union Issues
Driver Two-Tier Wage Pros & Cons??
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<blockquote data-quote="LongTimeComing" data-source="post: 1085924" data-attributes="member: 45493"><p>I've stayed out of this thread for my particular lack of a clear understanding of how this effects everyone....</p><p></p><p>All I'm going to touch on is the subject of competitive advantage. I can't recall exact numbers, but a few years ago it costs UPS something like 5 cents a package MORE to ship the same package than it would FedEx....and this is primarily due to the fact that they don't have union drivers. The only way UPS can win here is by maintaining our market advantage. If FedEx Ground is dipping into our percentages, then there is a need for worry. If it was a level playing field, then it comes down to quality of service. We win that battle....but by how much in the public's perception?</p><p></p><p>Their labor law isn't making anything easier for us. RLA requires national approval to unionize. Good luck with that. UPS has tried countless times to have them reassigned to the NLRA....all in attempts to level the playing field. If this happened, there would be much less pressure on changing the driver's wages or implementing something like a two-tiered system. Their wages would get closer to what our drivers are paid. It would bring the cost advantage per package to a negligible amount. It's a crappy situation, but the reality is that we are behind them on a cost perspective....so our service has to be considerably better in order to compensate. </p><p></p><p>Do you buy store brand products even if they aren't quite as good as the name brand? I do. They cost less. They may not have the same total quality, but they're close enough. If there was a huge difference, I would stick with the name brand.</p><p></p><p>I cannot be surprised or caught off guard if UPS reacts to Ground's growth. I cannot be surprised that they are taking measures to shrink that cost-per-package difference. It's a matter of shrinking the competitive advantage.</p><p></p><p>Does anyone know of a current figure of cost per package difference between us and them?</p></blockquote><p></p>
[QUOTE="LongTimeComing, post: 1085924, member: 45493"] I've stayed out of this thread for my particular lack of a clear understanding of how this effects everyone.... All I'm going to touch on is the subject of competitive advantage. I can't recall exact numbers, but a few years ago it costs UPS something like 5 cents a package MORE to ship the same package than it would FedEx....and this is primarily due to the fact that they don't have union drivers. The only way UPS can win here is by maintaining our market advantage. If FedEx Ground is dipping into our percentages, then there is a need for worry. If it was a level playing field, then it comes down to quality of service. We win that battle....but by how much in the public's perception? Their labor law isn't making anything easier for us. RLA requires national approval to unionize. Good luck with that. UPS has tried countless times to have them reassigned to the NLRA....all in attempts to level the playing field. If this happened, there would be much less pressure on changing the driver's wages or implementing something like a two-tiered system. Their wages would get closer to what our drivers are paid. It would bring the cost advantage per package to a negligible amount. It's a crappy situation, but the reality is that we are behind them on a cost perspective....so our service has to be considerably better in order to compensate. Do you buy store brand products even if they aren't quite as good as the name brand? I do. They cost less. They may not have the same total quality, but they're close enough. If there was a huge difference, I would stick with the name brand. I cannot be surprised or caught off guard if UPS reacts to Ground's growth. I cannot be surprised that they are taking measures to shrink that cost-per-package difference. It's a matter of shrinking the competitive advantage. Does anyone know of a current figure of cost per package difference between us and them? [/QUOTE]
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