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UPS Union Issues
The raise in 2002 was bigger than in 2019
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<blockquote data-quote="Blackstream" data-source="post: 3624356" data-attributes="member: 49052"><p>What's he off base on?</p><p></p><p>Anyways, reading some other numbers, the 2002 contract gave basically the same raises we're getting in 2018, but after 16 years of inflation and CoL increases, meaning those raises were worth a lot more then than they are now. </p><p></p><p>Checking an inflation counter, $1 in 2002 is effectively $1.40 in 2018, or to put it another way, a $0.70 raise today is about as good as a $0.50 raise back then.</p><p></p><p>Yeah those raises keep adding up, but the cost to ship a package also keeps going up. Checking google, from 2017 to 2018, the cost to ship a package went up by almost 5% on average. So if anything, it sounds like shipping costs are going up faster than labor costs, and considering that technology is (or at least should be) lowering the number of manhours needed to move a package from A to B, that should be even better.</p><p></p><p>So my question is, what are the circumstances in 2018 vs 2002 that allowed them to give effectively so much better raises than they can today? Is UPS actually getting less efficient over time and it's actually taking more man hours to get a box from A to B? Are they giving corporations such gigantic discounts to stay competitive that they're not actually making that much more profit? What's going on here?</p></blockquote><p></p>
[QUOTE="Blackstream, post: 3624356, member: 49052"] What's he off base on? Anyways, reading some other numbers, the 2002 contract gave basically the same raises we're getting in 2018, but after 16 years of inflation and CoL increases, meaning those raises were worth a lot more then than they are now. Checking an inflation counter, $1 in 2002 is effectively $1.40 in 2018, or to put it another way, a $0.70 raise today is about as good as a $0.50 raise back then. Yeah those raises keep adding up, but the cost to ship a package also keeps going up. Checking google, from 2017 to 2018, the cost to ship a package went up by almost 5% on average. So if anything, it sounds like shipping costs are going up faster than labor costs, and considering that technology is (or at least should be) lowering the number of manhours needed to move a package from A to B, that should be even better. So my question is, what are the circumstances in 2018 vs 2002 that allowed them to give effectively so much better raises than they can today? Is UPS actually getting less efficient over time and it's actually taking more man hours to get a box from A to B? Are they giving corporations such gigantic discounts to stay competitive that they're not actually making that much more profit? What's going on here? [/QUOTE]
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The raise in 2002 was bigger than in 2019
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