UPS Air Hub Move - From Louisville to Memphis?

ezmoney5150

Well-Known Member
Look at the commerical passenger airline business and their hub-and-spoke models. It does not make sense to have two hubs located so close to one another. American Airlines in Dallas has its hub at DFW. They expanded into Dallas Love Field to compete with Southwest but that wound up not making business sense and Dallas Love field is about 20 miles away.

Makes no business sense for UPS to build another hub so close. Good luck with doing it for personal reasons and explaining that on an analyst's call or shareholder meeting.

It does make sense. The old saying never put all your eggs in one basket. UPS knows Fred is holding the Central Region Hostage. Who's going to pay? His members.
 

cynic

Well-Known Member
It does make sense. The old saying never put all your eggs in one basket. UPS knows Fred is holding the Central Region Hostage. Who's going to pay? His members.

Ok, so weather is no longer the issue - it's the Central Region alleged being held hostage by "Fred"?

Given Worldport's 5.2 million sq. feet, multiple-billions of UPS investor's dollars spent to build, UPS's logistics models in place to schedule the air fleet and packages, along with the sweat off our backs to generate US$4+ billion in profits for UPS last year, I'm not seeing UPS building another hub within 3 hours flight time of Worldport.

I understand what you're driving at, but at the end of the day it is just business and it doesn't matter if it's Tom, Dick, Harry, or "Fred" to UPS. All of us are replaceable cogs in the system. Even when it seems personal, it is not. They do not care about anything other than their EPS to report to Wall Street. If fuel were not so expensive, I could see them building another Worldhub in northern Mexico in a trade free zone and use local labor to unload/sort/load.
 

DriveInDriveOut

Inordinately Right
Ok, so weather is no longer the issue - it's the Central Region alleged being held hostage by "Fred"?

Given Worldport's 5.2 million sq. feet, multiple-billions of UPS investor's dollars spent to build, UPS's logistics models in place to schedule the air fleet and packages, along with the sweat off our backs to generate US$4+ billion in profits for UPS last year, I'm not seeing UPS building another hub within 3 hours flight time of Worldport.

I understand what you're driving at, but at the end of the day it is just business and it doesn't matter if it's Tom, Dick, Harry, or "Fred" to UPS. All of us are replaceable cogs in the system. Even when it seems personal, it is not. They do not care about anything other than their EPS to report to Wall Street. If fuel were not so expensive, I could see them building another Worldhub in northern Mexico in a trade free zone and use local labor to unload/sort/load.
Just like many companies have located around Worldport, many companies have also located near FedEx's Memphis hub. An expansion in Memphis puts UPS in a better position to compete for a lot of that business. Google maps will show you the UPS hub in Memphis that is expanding soon is literally across the street from FedEx. I'm not saying they're gonna abandon Worldport or anything but expanding in Memphis does make business sense.
 

cynic

Well-Known Member
Just like many companies have located around Worldport, many companies have also located near FedEx's Memphis hub. An expansion in Memphis puts UPS in a better position to compete for a lot of that business. Google maps will show you the UPS hub in Memphis that is expanding soon is literally across the street from FedEx. I'm not saying they're gonna abandon Worldport or anything but expanding in Memphis does make business sense.

Is Memphis part of Central?
 

Satuirus2000

Well-Known Member
This isn't happening. Worldport only keeps expanding. Just a few years ago(can't remember if it was 2 or 3 years ago) Wing E was opened. And about 2 or 3 years before that, Wing D opened. Hell there are even rumblings that UPS is planning on moving employees' parking to a different section so they can expand and make their runways longer.
 
Ok, so weather is no longer the issue - it's the Central Region alleged being held hostage by "Fred"?

Given Worldport's 5.2 million sq. feet, multiple-billions of UPS investor's dollars spent to build, UPS's logistics models in place to schedule the air fleet and packages, along with the sweat off our backs to generate US$4+ billion in profits for UPS last year, I'm not seeing UPS building another hub within 3 hours flight time of Worldport.

I understand what you're driving at, but at the end of the day it is just business and it doesn't matter if it's Tom, Dick, Harry, or "Fred" to UPS. All of us are replaceable cogs in the system. Even when it seems personal, it is not. They do not care about anything other than their EPS to report to Wall Street. If fuel were not so expensive, I could see them building another Worldhub in northern Mexico in a trade free zone and use local labor to unload/sort/load.
Do yiu think the shareholders want to be held hostage by Fred this contract?? Do you think they will stand for being held hostage again next contract?? That's bad business for ups. I think ups will out smart the hillbilly in the end.
 

ezmoney5150

Well-Known Member
This isn't happening. Worldport only keeps expanding. Just a few years ago(can't remember if it was 2 or 3 years ago) Wing E was opened. And about 2 or 3 years before that, Wing D opened. Hell there are even rumblings that UPS is planning on moving employees' parking to a different section so they can expand and make their runways longer.

Don't be so sure. Maybe UPS doesn't want to be held hostage to a 9000 member local. Down size it to 4500 employees, take the write off and not put all their eggs in one basket.
 

cynic

Well-Known Member
Do yiu think the shareholders want to be held hostage by Fred this contract?? Do you think they will stand for being held hostage again next contract?? That's bad business for ups. I think ups will out smart the hillbilly in the end.

UPS is still shipping and delivering so I don't see how shareholders or employees are being held hostage as there aren't huge raises being paid as "ransom" in the contract. And UPS having a service interruption to deliveries would likely result in President Obama doing as (former) President Clinton did when American Airlines pilots went on strike - invoking emergency powers and ordering striking workers back to work and convening a board to mediate as in this New York Times article. Haven't you seen enough invocation of emergency government powers lately? Whether organized labor or not, ultimately wall street is going to win with their PAC's.
 
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UnconTROLLed

perfection
UPS is still shipping and delivering so I don't see how shareholders or employees are being held hostage as there aren't huge raises being paid as "ransom" in the contract. And UPS having a service interruption to deliveries would likely result in President Obama doing as (former) President Clinton did when American Airlines pilots went on strike - invoking emergency powers and ordering striking workers back to work and convening a board to mediate as in this New York Times article. Haven't you seen enough invocation of emergency government powers lately? Whether organized labor or not, ultimately wall street is going to win with their PAC's.
Obama and Hoffa....ugh
 

PiedmontSteward

RTW-4-Less
It does make sense. The old saying never put all your eggs in one basket. UPS knows Fred is holding the Central Region Hostage. Who's going to pay? His members.

From what I've heard, the situation might be reversed. If Fred didn't grandstand and oppose Hoffa/Hall at every turn -- even if they told him the sky was blue -- he'd be voted out in a heartbeat. I've tried to talk with some of the Local 89 guys about TeamCare via social media and they just don't get it. It's one thing to be pissed at concessions (and this contract had a few of them, even though I prefer being in a Taft-Hartley Plan -- philosophically and strategically -- more than in a company plan) and it's another to accuse Hoffa of trying to bail out the CS pension fund and/or the Mafia (seriously) with TeamCare dollars and GWI diversions, when it's plainly stated in the NMA TA that funds in critical status cannot receive GWI diversions.

None of the stuff I'm reading is mentioning or barely making note of the four year progression, the lack of improved 22.3 language (other than 2,350 new jobs), etc. It's all focused on TeamCare because fear of the unknown is a great motivating factor for getting people riled up.

anonymous is absolutely right. Even under TeamCare, we have the best insurance offered in the country. Our plan makes so-called gold plated Federal employee benefits look like a Dollar Tree hand-me-down.

There's an awful lot of bad information being passed around in Louisville.
 

ezmoney5150

Well-Known Member
It does make sense. The old saying never put all your eggs in one basket. UPS knows Fred is holding the Central Region Hostage. Who's going to pay? His members.

From what I've heard, the situation might be reversed. If Fred didn't grandstand and oppose Hoffa/Hall at every turn -- even if they told him the sky was blue -- he'd be voted out in a heartbeat. I've tried to talk with some of the Local 89 guys about TeamCare via social media and they just don't get it. It's one thing to be pissed at concessions (and this contract had a few of them, even though I prefer being in a Taft-Hartley Plan -- philosophically and strategically -- more than in a company plan) and it's another to accuse Hoffa of trying to bail out the CS pension fund and/or the Mafia (seriously) with TeamCare dollars and GWI diversions, when it's plainly stated in the NMA TA that funds in critical status cannot receive GWI diversions.

None of the stuff I'm reading is mentioning or barely making note of the four year progression, the lack of improved 22.3 language (other than 2,350 new jobs), etc. It's all focused on TeamCare because fear of the unknown is a great motivating factor for getting people riled up.

anonymous is absolutely right. Even under TeamCare, we have the best insurance offered in the country. Our plan makes so-called gold plated Federal employee benefits look like a Dollar Tree hand-me-down.

There's an awful lot of bad information being passed around in Louisville.

Well said.
 

realbrown1

Annoy a liberal today. Hit them with facts.
you really think it's about 70 cents Einstein? I'm going to make 100gr and you think that's what it is. The problem with you is you really haven't been at ups long enough to understand. This site have a lot of old timers but it's younger posters such as yourself that don't have the trials and tribulations yet to truly understand. Now come back with your comeback with whatever but I know I'm spot on about you.

It's all about you. 407troll. Sounds about right to me.
 

realbrown1

Annoy a liberal today. Hit them with facts.
From what I've heard, the situation might be reversed. If Fred didn't grandstand and oppose Hoffa/Hall at every turn -- even if they told him the sky was blue -- he'd be voted out in a heartbeat. I've tried to talk with some of the Local 89 guys about TeamCare via social media and they just don't get it. It's one thing to be pissed at concessions (and this contract had a few of them, even though I prefer being in a Taft-Hartley Plan -- philosophically and strategically -- more than in a company plan) and it's another to accuse Hoffa of trying to bail out the CS pension fund and/or the Mafia (seriously) with TeamCare dollars and GWI diversions, when it's plainly stated in the NMA TA that funds in critical status cannot receive GWI diversions.

None of the stuff I'm reading is mentioning or barely making note of the four year progression, the lack of improved 22.3 language (other than 2,350 new jobs), etc. It's all focused on TeamCare because fear of the unknown is a great motivating factor for getting people riled up.

anonymous is absolutely right. Even under TeamCare, we have the best insurance offered in the country. Our plan makes so-called gold plated Federal employee benefits look like a Dollar Tree hand-me-down.

There's an awful lot of bad information being passed around in Louisville.
I am surprised at you. You usually hit the nail right on the head. But you missed it big time buddy. Starting to sound alot like 407Troll and Stink.
From what I am reading, they have more issues than the ones that you listed.
How would you like a 4 or 5 hour job where you had to wait to ride a shuttle from the parking lot to work and back taking up to 40 minutes of your time every day without compensation.
Like I said, I had alot of respect for you------before. Now you just seem to be on of the OG cheerleaders.
 
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