UPS Sets Ambitious Earnings-Growth Targets

Discussion in 'UPS Discussions' started by Returntosender, Nov 16, 2014.

  1. Returntosender

    Returntosender Well-Known Member

    United Parcel Service Inc. executives laid out the company’s five-year plan on Thursday, highlighting aggressive cost-cutting measures, as well as ambitious growth targets

    The company reaffirmed its full-year 2014 guidance at the investor conference[​IMG]. UPS expects to report FY14 EPS in the range of $4.9-5. Moreover, the company announced it will be investing $1 billion in accelerated pension contribution to its company-sponsored pension plans in the last quarter of FY14.
  2. Wally

    Wally Hailing from Parts Unknown.

    What are the aggressive cost-cutting measures they cite?
  3. Gumby

    Gumby *

    More stops,for Wally. Sorry buddy.
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  4. Returntosender

    Returntosender Well-Known Member

    They want to add one tenth more packages per car. Expand the use of UPS version of the Amazon Lockers.
  5. Wally

    Wally Hailing from Parts Unknown.

    So, there cost cutting measures is to give me more overtime? Actually, that makes sense.
  6. Returntosender

    Returntosender Well-Known Member

    They're real end game is to burn out the drivers so they leave early. They will pay OT upfront as long as they reduced the pension contributions. Years ago someone wrote about that plan. Happening in incremental steps.
  7. undies

    undies Active Member

    How does paying more OT lower pension contributions?
  8. Driver7906

    Driver7906 Member

    They can pay a driver overtime and burn him out before he can retire. If he quits before retirement age, UPS won't have to pay the driver's pension.
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  9. soberups

    soberups Pees in the brown Koolaid

    UPS doesn't pay a pension to the driver. It contributes a negotiated amount per hour into the applicable pension fund. Whether the driver quits early or not is irrelevant.
  10. joeboodog

    joeboodog good people drink good beer

    I have seen more drivers retire this year than in my previous 29 years combined.
  11. Johney

    Johney Well-Known Member

    Does that count for Central States also?
  12. AKCoverMan

    AKCoverMan Active Member

    The company only contributes for the first 8hrs of the day. They don't pay in extra if you work overtime.

    So in theory if you can get 8 drivers to run 10 hour routes instead of having 10 drivers running 8 hour routes you save the cost of two pensions, two insurance plans, and two vehicles. Again in theory the amount saved in insurance, pension, and vehicle costs far out weighs the additional expense of the overtime.

    Often in practice what happens is the plan of 8 drivers running 10 hour routes turns into 8 guys running 11-12 hr routes because the cars are too stuffed to work out of and you have to spend too much time breaking off for businesses and comits because you are spread too thin.

    But since the Plan thinks it can be done in 10 hours the theory of fewer routes with longer planed days saving money persists. It's all the lazy drivers fault!!
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  13. MechLift

    MechLift Member

    ORION and everything else is secret.
  14. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    To a point.....the pension will be reduced and will start much later (65) if they leave early.

    There are drivers covered by the UPS Pension Plan.
  15. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    This is untrue. If a driver quits before reaching retirement age, but has at least 5 years of service, he/she will receive a pension when they turn 65.
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  16. Wally

    Wally Hailing from Parts Unknown.

    I would say the "8 running 10" is standard practice non peak season.
  17. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    In our center it is more like "9 running 9".
  18. Johney

    Johney Well-Known Member

  19. 728ups

    728ups offending people on the internet since 1995

    Enjoy it while it lasts. I used to read about drivers on here working peak season hours during non peak times and in all honesty thought they were making stuff up.Over night we went to having routes slashed,trucks loaded down with incredible amounts of work and went from a center that files MAYBE 2 or 3 grievances a month to about 10-15 every day.
    again,I urge you to enjoy it while it lasts
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  20. UpstateNYUPSer

    UpstateNYUPSer Very proud grandfather.

    25 years so far. I don't see a whole lot changing in the next 5.