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Brown Cafe UPS Forum
UPS Union Issues
UPS vs. Union proposals now on the table
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<blockquote data-quote="kingOFchester" data-source="post: 1113337" data-attributes="member: 11246"><p>YES!! Without a doubt. </p><p></p><p>Fedex cost per package has to be more then ours if you take out labor costs out of both UPS and Fedex. They do not handle the volume we have and so the cost would have to be higher, again if you take out the labor cost. </p><p></p><p>As time goes on, and as they get bigger, their cost will go down. If they become, or I should say when, they get to the size of UPS but not having to pay the labor cost UPS does, well then we are in trouble. They will be able to undercut us since they will have the savings of not having union labor but have the size advantage that we have now. The larger they are, the lower the cost per package will be.</p><p></p><p>Either they need to loose their contractor model and the airline classification or we will at some point need to take severe pay cuts. I am to tired now from humping boxes all day, but I am sure I could do a little research and see what their growth rate has been over time and compare that to ours. Once the numbers are complied it would be fairly easy to predict the tipping point (when they reach our size).</p></blockquote><p></p>
[QUOTE="kingOFchester, post: 1113337, member: 11246"] YES!! Without a doubt. Fedex cost per package has to be more then ours if you take out labor costs out of both UPS and Fedex. They do not handle the volume we have and so the cost would have to be higher, again if you take out the labor cost. As time goes on, and as they get bigger, their cost will go down. If they become, or I should say when, they get to the size of UPS but not having to pay the labor cost UPS does, well then we are in trouble. They will be able to undercut us since they will have the savings of not having union labor but have the size advantage that we have now. The larger they are, the lower the cost per package will be. Either they need to loose their contractor model and the airline classification or we will at some point need to take severe pay cuts. I am to tired now from humping boxes all day, but I am sure I could do a little research and see what their growth rate has been over time and compare that to ours. Once the numbers are complied it would be fairly easy to predict the tipping point (when they reach our size). [/QUOTE]
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UPS Union Issues
UPS vs. Union proposals now on the table
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