UPS Light

[dannyboy]

Anybody heard any info on this program yet?

d

 

[badhab1]

{information was deleted by moderator in response to the following complaint:}

There is confidential company information in this thread or about to be in this thread. No such service has been publicly announced so this is material information by SEC rules.

 

[abuckover]

I always thought it would be a great idea to cut or delivery attempts back to 2. The first time, if we miss you, is a heads up for #2. If you don't phone in and make alternate arrangements in time for #2, then you have to pick it up. Would save a lot of money, and I don't think people could get too upset. Procrastinators are the only people who are served by a third attempt.

 

[local804]

Sounds like a great service. It will keep us more competitive with the rivals.

 

[tieguy]

How's it compare to what the competition is doing?

 

[local804]

Lower pricing

 

[cheryl]

badhab,

I deleted the info in your post due to a complaint that it voilated SEC rules. In my judgement the post wasn't a problem, but I don't want my ignorance of SEC rules to get anyone in trouble...

 

[dannyboy]

Well, actually there are several things about it that Badhabits didnt post. ANd I guess that if I released the info here, I will also be in violation( I can see the problems). So I will not post what I know of it.

THen we can discuss the implications as to drivers jobs, company reputation etc.

d

 

[badhab1]

No problem Cheryl, it certainly is not proprietary information. Have a nice day.

 

[dannyboy]

Where is everyone?

d

 

[toonertoo]

They are not paying attention. They probably think it is a hoax. I would bet it is being snuck in the back just like the 0ver 70s were.

 

[dannyboy]

Nah, O/70's were a solid business move, meant to get us more business, and it did. It is the way they did it that was a bit wrong.

d

 

[tieguy]

Yep. Right or Wrong UPS does not like getting itself into the position of negotiating new services with the teamsters. At the very least we underestimated the teamster response on the over 70 service.

 

[retired]

Looks like whoever complained about badhab's post was a nervous nelly, it's obviously already been announced.

United Parcel Service will offer a customized service that combines its ground delivery service with the U.S. Postal Service's Parcel Select, possibly resulting in lower rates for mailers using UPS.
UPS will use Parcel Select for deliveries up to five pounds, primarily to rural or super-rural areas. Customers will give their packages to UPS, which will move them through its ground network. UPS will separate out the packages that are to be delivered to the rural areas and turn them over to the local post office for final delivery.

UPS currently charges a $1.75 surcharge for rural deliveries. It is unknown how much UPS will pay the postal service for each package.

"We're going after volumes UPS currently does not have," UPS spokeswoman Susan Rosenberg. "We're working with customers that are not currently UPS customers."

Rosenberg said customers have signed on, but are not yet using the service. She would not name the customers or say when the service would begin.

"UPS has lost a lot of residential lightweight package volume to consolidators," said Doug Caldwell, a vice president at AFSM Transportation Management Group, a transportation management consultancy in Portland, OR. "This is partly because consolidators can come in and offer a lower rate, particularly on lightweight, residential packages, than UPS."

Parcel Select consolidators are concerned about the partnership, Caldwell said. They have been able to get business for deliveries to rural areas from mailers who might be UPS customers, but use the consolidators for shipments to rural locations to avoid the UPS surcharge.

Caldwell also said that because UPS now will share delivery of packages that have gone exclusively through Parcel Select, the postal service could "lose some fairly significant volumes, at least in the short run."

In the long run, however, the relationship with UPS may benefit the postal service.

"This is pretty historic," Caldwell said.

Insiders said that FedEx might announce a similar partnership soon.

 

[wily_old_vet]

My question about handing packages over to the post office for final delivery is liability for damage. If they damage the package after we give it to them who pays for the package? Also it will obviously be cheaper for UPS to give the rural packages to the p.o. at whatever rate they charge us than to pay a UPS'er to do that same job. I'd love to hear the Teamsters take on this new service.

 

[brown39]

I am sure the claim process will NOT change for the shipper. As for the teamsters', I imagine they won't mind NOT having to make stops to farms, etc.etc. as long as packages are given to a union employee.

 

[dannyboy]

FRom the information that I got, the postal service will send UPS a bill for $1.00 per package droped off at the post office.

And from the same source, IF this is pushed, it will be a strike issue.

WHile I can not share who I heard this from, he is a major figure at the Teamsters.

I guess its time to start saving back some money again!

d

 

[dammor]

Not Funny Danny,

Anyone that would even suggest a strike issue at this point in time needs a swift kick in the butt. We are just now getting well from the last scare. As teamsters we needen't roll over and play dead, but we need to realize we are not the only game in town anymore. Making UPS successful is our best bet for keeping the job and benefits we are enjoying now. Look at the stock and count your blessings. I know I do.

 

[local804]

I agree with Dannyboy.I cant see UPS giving away the UPS/Teamster work to the post office.I dont think anyone wants to see a strike,or work starting to shift towards the postoffice. UPS used to sub-contract alot of feeder work out to different companies.They stopped, or slowed that process down to create more jobs/promotions for the package division that wanted to go feeder.The post office subs out its express letters to Fed-ex and some otherwork to dhl( I think international ) How could UPS even think about going there.........

 

[dammor]

Think about it. I can, and do, drive 40 miles to deliver a 1 pound package on my area. If you were UPS wouldn't you try to find a way to regain some of the losses? I can see the bitch about it. My run would be changed in a big way.
Granted I would not like that, but I can understand the reason they would like to do away with these sort of packages. Rural areas deserve good service also, but if it costs more to get out there than it does to ship the package then is makes a large sucking sound profit wise.

(Message edited by dammor on October 29, 2003)