USPS delivering on Labor Day.
- Thread starter Rick Ross
- Start date
Staydryitsraining
Well-Known Member
They lose 1.46 per Amazon delivery they do. Bozo exploited some loop hole. He'll end up buying the post office once they lobby enough to let the government sell it.
What loophole?
FrigidFTSup
Resident Suit
Yeah I'm sure he's going to jump at a chance to keep funding those pensions.
Amazon is notoriously anti union. It always amazes me when people think they will buy us or USPS. Not a chance.
40 and out
Well-Known Member
Rumor's going around again that they are going to try to buy FedEx.
worldwide
Well-Known Member
"In 2007 the Postal Service and its regulator determined that, at a minimum, 5.5% of the agency’s fixed costs must be allocated to packages and similar products. A decade later, around 25% of its revenue comes from packages, but their share of fixed costs has not kept pace. First-class mail effectively subsidizes the national network, and the packages get a free ride. An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver. It is as if every Amazon box comes with a dollar or two stapled to the packing slip—a gift card from Uncle Sam."
For every Amazon package it delivers, the Postal Service loses $1.46
Keep in mind, First-class mile is a monopoly for the USPS - no one else can deliver it. Not really a loophole but just an oddity in postal regulations that the government has been unwilling to address. USPS happy to get the Amazon volume to stay in business and Amazon happy to get ultra cheap rates. The by product is that retailers can't compete and more and more go out of business. For UPS and FedEx, they lose business to the USPS.
The Teamsters should be all over this as it is costing them membership. If the USPS charged market appropriate rates, UPS and FedEx would be more competitive and there would be more volume in their systems.
Perhaps this is something the Trump administration will look into if enough people write to their representatives to complain about this unfair competition.
Staydryitsraining
Well-Known Member
Hell would freeze before ups was sold. Maybe in 20 years when the union is dead. If Amazon bought the post office they would obviously change how it was ran. Ever heard of buy outs when companies buy out others?
Jkloc420
Do you need an air compressor or tire gauge
nobody wants to buy ups because of the union, they would buy fedex first
Staydryitsraining
Well-Known Member
I don't understand why, the union is phenomenal.
FrigidFTSup
Resident Suit
Oh dear God. You think they can just buy the company and say bye bye union? If that were the case UPS would have already done it.
FrigidFTSup
Resident Suit
For YOU, not for the company.
Over 70
Well-Known Member
Judging by UPS' overwhelming success I'd disagree
FrigidFTSup
Resident Suit
One does not equal another. Our profit margins would soar if the union disappeared because we would have absolutely no reason to pay or provide the benefits we do. Production would drop, but costs per driver would decrease, so we could do the same at a lower cost.
Over 70
Well-Known Member
Production would go way down but I suppose maybe not as much as costs?
Edit I can't read haha #dumbtruckdriver
The union gives the company a fixed costs regarding pay, benefits, pension etc. for the life of the contract. I'd say that benefits the company.
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