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UPS can't compete because of high labor costs?
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<blockquote data-quote="John19841" data-source="post: 614545" data-attributes="member: 10939"><p>On the preload, production can go down and they have to add even an extra hour, the cost saved greatly outweighs the added expense. I get that, and it makes good business sense to me.</p><p></p><p>What doesn't make sense, is if they get in $15/hour guys and production goes down, they have to add more drivers. A lot more drivers. Sure, they can also cut benefits and pension contributions and save some money there. BUT, they need to buy more trucks, more insurance, more uniforms, etc. etc. Cost savings and cost expense pretty much cancel each other out. But the big thing is service. Service goes way down. WAY down. And UPS suffers. That to me does not make good business sense. UPS has been around a long time. Despite what we think, I'm pretty sure there's a guy or two at the top who knows this....At least I hope there is.</p></blockquote><p></p>
[QUOTE="John19841, post: 614545, member: 10939"] On the preload, production can go down and they have to add even an extra hour, the cost saved greatly outweighs the added expense. I get that, and it makes good business sense to me. What doesn't make sense, is if they get in $15/hour guys and production goes down, they have to add more drivers. A lot more drivers. Sure, they can also cut benefits and pension contributions and save some money there. BUT, they need to buy more trucks, more insurance, more uniforms, etc. etc. Cost savings and cost expense pretty much cancel each other out. But the big thing is service. Service goes way down. WAY down. And UPS suffers. That to me does not make good business sense. UPS has been around a long time. Despite what we think, I'm pretty sure there's a guy or two at the top who knows this....At least I hope there is. [/QUOTE]
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UPS can't compete because of high labor costs?
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