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Fed ex jumpin head first !
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<blockquote data-quote="wkmac" data-source="post: 138993" data-attributes="member: 2189"><p>hoser,</p><p>Oh yeah, the process as you said will be slow but strategic thinking in this area of business is over the long haul and takes years to show results. I do think ultimately what UPS wants in this whole deal is not so much for FedEx to become union but rather to have UPS moved under the Railway Act with FedEx rather than FedEx going NLRB. UPS knows a non-union UPS has about as much chance as a snowball in hell. Even those like myself who aren't to excited about unions anyway are also about as unexcited about a UPS without a union to check itself so there you go. Also UPS does benefit with a union and one cases is with unemployment benefits. With the union the employee goes through a process of where the termination is looked at via the grievance procedure. I'll bet this has a $$$ saving impact for the company that we never consider or hear about. </p><p> </p><p>As for the Railway Act, it allows contract processes to become dragged out and take years in some cases. Look at both UPS and FedEx pilots. In both cases, these companies know they will pay in some future arrangement and there are 2 IMO obvious advantages for the employers in this drawn out process.</p><p> </p><p>1st) Outlasting the opposition to the point that frustration builds and the pressure is more on the union to get a contract to an every increasingly nervous membership. Not always every case mind you but it has worked in some cases and more times than not.</p><p> </p><p>2nd) During these several years of contract limbo, a healthy company can set aside or make investments with it's excess on-hand cash to build up assets than in effect pay the increased costs over the longhaul so instead of agreeing early and having to pull from upfront revenues, the company can drag it's feet while building assets whose longterm earning pay the increase that never effects the priciple asset unless hardtimes arise and the company is able to not have to direct draw from it's revenue stream. There is a bottomline effect but to analyst looking at this picture, they see a very smart business approach to rising costs which thus has a positive effect on their opinions to the stock. </p><p> </p><p>I'll concede this is total conjecture on my part because in both the above I have no proof that UPS is using this type of strategic thinking but other companies have and a number of non-union companies build up assets outside the core business whose return pay the overhead. I just see where this thinking could happen within our world of UPS and FedEx.</p><p> </p><p>On a totally different note, are you guys off tomorrow and Friday like us or in Canada do you guys have a Canadian Thanksgiving at another time? Just curious!</p><p>Have a good one.</p></blockquote><p></p>
[QUOTE="wkmac, post: 138993, member: 2189"] hoser, Oh yeah, the process as you said will be slow but strategic thinking in this area of business is over the long haul and takes years to show results. I do think ultimately what UPS wants in this whole deal is not so much for FedEx to become union but rather to have UPS moved under the Railway Act with FedEx rather than FedEx going NLRB. UPS knows a non-union UPS has about as much chance as a snowball in hell. Even those like myself who aren't to excited about unions anyway are also about as unexcited about a UPS without a union to check itself so there you go. Also UPS does benefit with a union and one cases is with unemployment benefits. With the union the employee goes through a process of where the termination is looked at via the grievance procedure. I'll bet this has a $$$ saving impact for the company that we never consider or hear about. As for the Railway Act, it allows contract processes to become dragged out and take years in some cases. Look at both UPS and FedEx pilots. In both cases, these companies know they will pay in some future arrangement and there are 2 IMO obvious advantages for the employers in this drawn out process. 1st) Outlasting the opposition to the point that frustration builds and the pressure is more on the union to get a contract to an every increasingly nervous membership. Not always every case mind you but it has worked in some cases and more times than not. 2nd) During these several years of contract limbo, a healthy company can set aside or make investments with it's excess on-hand cash to build up assets than in effect pay the increased costs over the longhaul so instead of agreeing early and having to pull from upfront revenues, the company can drag it's feet while building assets whose longterm earning pay the increase that never effects the priciple asset unless hardtimes arise and the company is able to not have to direct draw from it's revenue stream. There is a bottomline effect but to analyst looking at this picture, they see a very smart business approach to rising costs which thus has a positive effect on their opinions to the stock. I'll concede this is total conjecture on my part because in both the above I have no proof that UPS is using this type of strategic thinking but other companies have and a number of non-union companies build up assets outside the core business whose return pay the overhead. I just see where this thinking could happen within our world of UPS and FedEx. On a totally different note, are you guys off tomorrow and Friday like us or in Canada do you guys have a Canadian Thanksgiving at another time? Just curious! Have a good one. [/QUOTE]
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