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UPS Union Issues
question about pension contribution
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<blockquote data-quote="Thebrownblob" data-source="post: 5887017" data-attributes="member: 60485"><p>If you’re in central states that’s not true i. Central states was heavily in the trucking industry, which was deregulated. It’s really not even debatable, dozens, and dozens of carriers went out of business within a couple years of the deregulation.</p><p></p><p>[URL unfurl="true"]https://www.industryweek.com/the-economy/regulations/article/22007281/did-deregulation-work[/URL]</p><p></p><p>“The reality was that deregulation triggered a price war and cutthroat discounting, forcing 20 out of 30 of the largest companies out of business. These changes created an influx of owner operator (shoe string) companies that worked for much lower income. About 400,000 new owner operator companies came into the industry in the early 1990s. The result was too many companies chasing too little freight, which ended in rate wars.</p><p>In May of 1985, the pressure was really on the Teamsters union. They were losing a lot of jobs and members. They agreed to a two-tier wage system, where existing members would continue to make their wage of $16 per hour ($33 per hour in today’s money) and new hires would make $8 per hour. The union agreed to the new contract because new members had to pay the same union dues as old members, and real income for the union would go up.</p><p></p><p>The second phase of trucking deregulation was that the surviving companies began to buy up the survivors, which put fewer companies in control of the industry. So, in some ways, deregulation worked as intended: either trucking companies became more efficient or perished. There was new competition that drove many companies out of business and reduced prices to consumers.</p><p></p><p>However, to achieve the original objectives of deregulation, 100 large companies went out of business and 150,000 people lost their jobs--these were the high paying union jobs that had good benefits like health insurance and pensions.</p><p></p><p>So deregulation did result in tough competition, more efficiency, lower costs, and lower prices to consumers. But in attaining these goals, thousands of companies were forced out of business, resulting in lower wages, and the creation of oligopolies through mergers and acquisitions.”</p></blockquote><p></p>
[QUOTE="Thebrownblob, post: 5887017, member: 60485"] If you’re in central states that’s not true i. Central states was heavily in the trucking industry, which was deregulated. It’s really not even debatable, dozens, and dozens of carriers went out of business within a couple years of the deregulation. [URL unfurl="true"]https://www.industryweek.com/the-economy/regulations/article/22007281/did-deregulation-work[/URL] “The reality was that deregulation triggered a price war and cutthroat discounting, forcing 20 out of 30 of the largest companies out of business. These changes created an influx of owner operator (shoe string) companies that worked for much lower income. About 400,000 new owner operator companies came into the industry in the early 1990s. The result was too many companies chasing too little freight, which ended in rate wars. In May of 1985, the pressure was really on the Teamsters union. They were losing a lot of jobs and members. They agreed to a two-tier wage system, where existing members would continue to make their wage of $16 per hour ($33 per hour in today’s money) and new hires would make $8 per hour. The union agreed to the new contract because new members had to pay the same union dues as old members, and real income for the union would go up. The second phase of trucking deregulation was that the surviving companies began to buy up the survivors, which put fewer companies in control of the industry. So, in some ways, deregulation worked as intended: either trucking companies became more efficient or perished. There was new competition that drove many companies out of business and reduced prices to consumers. However, to achieve the original objectives of deregulation, 100 large companies went out of business and 150,000 people lost their jobs--these were the high paying union jobs that had good benefits like health insurance and pensions. So deregulation did result in tough competition, more efficiency, lower costs, and lower prices to consumers. But in attaining these goals, thousands of companies were forced out of business, resulting in lower wages, and the creation of oligopolies through mergers and acquisitions.” [/QUOTE]
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