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How dare UPS layoff workers after profitting $5.8 BILLION in 2010?
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<blockquote data-quote="pretzel_man" data-source="post: 805560" data-attributes="member: 927"><p>Nimnim,</p><p> </p><p>You always have thoughtful comments, even when we disagree....</p><p> </p><p>Its hard to respond to what you say. I either agree with much of it or its just a matter of opinion...</p><p> </p><p>Equipment and Facilities - UPS spent $1.6B on Capex in 2009. That is down from $2.6B in 2008. I don't know the 2010 number but I'm sure its up from 2009. Generally profits go to shareowners as dividends and also back into the business in CapEx. Was the choice of where to do CapEx spend the wisest? I don't know. I don't know the choices, but the company did spend a lot.</p><p> </p><p>Better starting wages - I think that when the company dropped the part time wages and upped the full time wages, it felt good for a while. Now that is an anchor. I do know that since Casey's day, overall wages and benefits has been looked at as a % of income. I'm pretty sure its remained at between 65% and 69% of revenue for quite some time. (Not 100% sure). My point is that if wages go up for one segment, it will decrease somewhere else.</p><p> </p><p>Other - Even Casey said that we should all be constructively dissatisfied. Nothing wrong with that. Failed organizations are always fat and happy.</p><p> </p><p>Shareowners - UPS has always looked at the bottom line. I don't see a change in that area in my 35 years. In fact, more time seems to be spent now in not performance related areas than when I started. </p><p> </p><p>What has changed? </p><p> </p><p>From my perspective the largest change I have seen is competition and growth. When I started we were growing leaps and bounds. The competitor was the post office and we were the low cost high service provider. When FedEx created the air marketplace, we stayed back for a while then started taking away their packages. I think we got fat and happy with our growth.</p><p> </p><p>Now, we are no longer the low cost provider. We are no longer growing. FedEx grows faster than us and the packages come from us. FedEx ground pays for a driver about 1/2 what we pay (maybe 60%). How many on road supervisors do they have? Zero. None in package, none in feeder. They have a cost advantage.</p><p> </p><p>So to be competitive, we have had to cut costs. I hate it and wish it were not necessary. We used to have more people in operations, HR, etc. More time was spent training operators. I believe they were stronger....</p><p> </p><p>Its not because those savings are now lining the shareowners pockets. They are not. Again, look at the stock price growth in the last 10 years vs FedEx. Those reductions were necessary to stay competitive and ensure that we can continue to pay the wages we do now.</p><p> </p><p>UPS will be offering a low cost SurePost service. It will have packages delivered by the USPS. I'm certain that people will say that this was also a greedy move. On the contrary, it is a very low margin service just to stay competitive.</p><p> </p><p>As I said, I believe the biggest change has been competition.</p></blockquote><p></p>
[QUOTE="pretzel_man, post: 805560, member: 927"] Nimnim, You always have thoughtful comments, even when we disagree.... Its hard to respond to what you say. I either agree with much of it or its just a matter of opinion... Equipment and Facilities - UPS spent $1.6B on Capex in 2009. That is down from $2.6B in 2008. I don't know the 2010 number but I'm sure its up from 2009. Generally profits go to shareowners as dividends and also back into the business in CapEx. Was the choice of where to do CapEx spend the wisest? I don't know. I don't know the choices, but the company did spend a lot. Better starting wages - I think that when the company dropped the part time wages and upped the full time wages, it felt good for a while. Now that is an anchor. I do know that since Casey's day, overall wages and benefits has been looked at as a % of income. I'm pretty sure its remained at between 65% and 69% of revenue for quite some time. (Not 100% sure). My point is that if wages go up for one segment, it will decrease somewhere else. Other - Even Casey said that we should all be constructively dissatisfied. Nothing wrong with that. Failed organizations are always fat and happy. Shareowners - UPS has always looked at the bottom line. I don't see a change in that area in my 35 years. In fact, more time seems to be spent now in not performance related areas than when I started. What has changed? From my perspective the largest change I have seen is competition and growth. When I started we were growing leaps and bounds. The competitor was the post office and we were the low cost high service provider. When FedEx created the air marketplace, we stayed back for a while then started taking away their packages. I think we got fat and happy with our growth. Now, we are no longer the low cost provider. We are no longer growing. FedEx grows faster than us and the packages come from us. FedEx ground pays for a driver about 1/2 what we pay (maybe 60%). How many on road supervisors do they have? Zero. None in package, none in feeder. They have a cost advantage. So to be competitive, we have had to cut costs. I hate it and wish it were not necessary. We used to have more people in operations, HR, etc. More time was spent training operators. I believe they were stronger.... Its not because those savings are now lining the shareowners pockets. They are not. Again, look at the stock price growth in the last 10 years vs FedEx. Those reductions were necessary to stay competitive and ensure that we can continue to pay the wages we do now. UPS will be offering a low cost SurePost service. It will have packages delivered by the USPS. I'm certain that people will say that this was also a greedy move. On the contrary, it is a very low margin service just to stay competitive. As I said, I believe the biggest change has been competition. [/QUOTE]
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How dare UPS layoff workers after profitting $5.8 BILLION in 2010?
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