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The Latest UPS Headlines
Tensions at UPS are brewing between leadership and unionized drivers as the new CEO doubles down on drivers who make deliveries in their own cars
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<blockquote data-quote="brownIEman" data-source="post: 4887881" data-attributes="member: 14596"><p>No, UPS has not "basically written the last 2 union contracts". The contracts are written and agreed to by both parties. So the lack of flexibility is the responsibility of both parties. UPS management made poor decisions in many cases and deserve the blame for those. UPS management made the best operations decisions they could make withing the confines of the NMA in many cases, and blame could arguably be shared. I am certainly not blaming union employees for this. The lion's share of the responsibility is on UPS management, so they get the lion's share of the blame. But there is enough blame to go around on this slow, foundering ship.</p><p></p><p>UPS did not "allow" fedex ground to happen. RPS grew as a niche service based mostly on price. UPS found it could not get the leverage to undercut their prices, their main competition selling point, without losing money. Part of that analysis showed UPS had a serious need to control rising costs in order to stay competitive. They consolidated support operations and then tried to control rising pension and other costs in the 1997 contract. We all know how that worked. After the strike, Fedex purchased Caliber(Parent of RPS) as they realized UPS could not compete on price and drive them out of the market. That is how Fedex ground happened.</p><p></p><p>Yes, UPS really gave up on growth about 24 years ago, give or take. At least since that time, their market share has been shrinking. But the market has exploded in that same time however, which has allowed some growth.</p><p></p><p>Yes, UPS delivered and still delivers Amazon packages. They could have refused as soon as Amazon started delivering their own packages, but that would likely have just deprived UPS of the revenue from those packages and the Teamsters jobs moving those packages while Amazon would have just moved the volume to USPS and local carriers and just accelerated the growth of their logistic arm even faster. Not sure how that would have helped...</p></blockquote><p></p>
[QUOTE="brownIEman, post: 4887881, member: 14596"] No, UPS has not "basically written the last 2 union contracts". The contracts are written and agreed to by both parties. So the lack of flexibility is the responsibility of both parties. UPS management made poor decisions in many cases and deserve the blame for those. UPS management made the best operations decisions they could make withing the confines of the NMA in many cases, and blame could arguably be shared. I am certainly not blaming union employees for this. The lion's share of the responsibility is on UPS management, so they get the lion's share of the blame. But there is enough blame to go around on this slow, foundering ship. UPS did not "allow" fedex ground to happen. RPS grew as a niche service based mostly on price. UPS found it could not get the leverage to undercut their prices, their main competition selling point, without losing money. Part of that analysis showed UPS had a serious need to control rising costs in order to stay competitive. They consolidated support operations and then tried to control rising pension and other costs in the 1997 contract. We all know how that worked. After the strike, Fedex purchased Caliber(Parent of RPS) as they realized UPS could not compete on price and drive them out of the market. That is how Fedex ground happened. Yes, UPS really gave up on growth about 24 years ago, give or take. At least since that time, their market share has been shrinking. But the market has exploded in that same time however, which has allowed some growth. Yes, UPS delivered and still delivers Amazon packages. They could have refused as soon as Amazon started delivering their own packages, but that would likely have just deprived UPS of the revenue from those packages and the Teamsters jobs moving those packages while Amazon would have just moved the volume to USPS and local carriers and just accelerated the growth of their logistic arm even faster. Not sure how that would have helped... [/QUOTE]
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The Latest UPS Headlines
Tensions at UPS are brewing between leadership and unionized drivers as the new CEO doubles down on drivers who make deliveries in their own cars
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