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<blockquote data-quote="brownIEman" data-source="post: 609399" data-attributes="member: 14596"><p>Heffernan, I hope you are wrong on this one, but fear you may be correct. If things do not change in the cost structure, we are heading for a big show down in 2013. UPS has to do something to redress the huge premium it pays over what our competitors do. So far, the solution has been to just get more and more out of our service providers. But as you say, Drivers are not robots, and there has to be some limit as to how far that can go. </p><p></p><p>If there is a strike, you are correct, it will be game over for UPS, at least as the company it is today. The UPS leadership know this, so there will be tremendous pressure to get an agreement no matter what.</p><p></p><p>However, if the cost UPS pays for each of our employees keeps getting farther and farther ahead of what our competitors pay, and yet we cannot rely on being able to get more and more production out of our people, we will become less and less competitive. So, if UPS agrees to a contract that does nothing to control cost growth, it will be agreeing to a contract that will see its business siphoned off to the competition. Not as noisy or quick a death as a strike, but in the end, the same result, Fed-Ex wins, game over.</p><p></p><p>Hopefully, smarter folks will be able to find a middle ground, wher UPS drivers still make more than anyone else in the industry, but not to such a degree that UPS cannot become competitive again.</p></blockquote><p></p>
[QUOTE="brownIEman, post: 609399, member: 14596"] Heffernan, I hope you are wrong on this one, but fear you may be correct. If things do not change in the cost structure, we are heading for a big show down in 2013. UPS has to do something to redress the huge premium it pays over what our competitors do. So far, the solution has been to just get more and more out of our service providers. But as you say, Drivers are not robots, and there has to be some limit as to how far that can go. If there is a strike, you are correct, it will be game over for UPS, at least as the company it is today. The UPS leadership know this, so there will be tremendous pressure to get an agreement no matter what. However, if the cost UPS pays for each of our employees keeps getting farther and farther ahead of what our competitors pay, and yet we cannot rely on being able to get more and more production out of our people, we will become less and less competitive. So, if UPS agrees to a contract that does nothing to control cost growth, it will be agreeing to a contract that will see its business siphoned off to the competition. Not as noisy or quick a death as a strike, but in the end, the same result, Fed-Ex wins, game over. Hopefully, smarter folks will be able to find a middle ground, wher UPS drivers still make more than anyone else in the industry, but not to such a degree that UPS cannot become competitive again. [/QUOTE]
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