What IF

Discussion in 'UPS Union Issues' started by Fredless, Jan 7, 2008.

  1. Fredless

    Fredless APWA Hater

    I've been thinking about this and wondering if it could ever happen.

    Lets say the doomsday preachers that have been rampant on this site within the past few months got their way. The union won out EVERYTHING, the 6.1 BILLION dollar pension buyout to secure retirement, another 10,000 new full time jobs over this contract, secured medical benefits language, pay raises to like say...$10.00 to start as a part timer, benefits kicked in after 8 weeks like they did under the previous contract...I mean EVERYTHING. Not a single concession to the company.

    UPS is becoming a highly globalized and diversified company more than ever, which anyone with the most basic business management skills knows is required to survive in today's world and for the forseeable future.

    When does it get to the point where the package division is barely profitable, IF AT all with increasing competition? Maybe someone with current research can tell us how profitable the package division was by itself, not UPS as a whole, in recent years.

    Anyway, the point and the question, WHAT IF UPS was to say you know what? Screw this. We make enough money in the SCS, blah blah other divisions to remain profitable in the future and even more so without the package division and they sell it off to another company?

    Hell maybe a hedge fund like Yucaipa or whatever that bought out Allied Van lines and said YOU WILL take this pay cut or we're done?

    Thoughts? I mean if the package division got to the point where it was costing my highly diversified corporation and became more of a parasite than anything, how long before they do something like this? What happens to the union? When is ENOUGH enough? I'm all for union power and all, but maybe this is something the doomsday preachers didn't see behind closed doors? Theres a lot of stuff I never knew went on, the politics etc..before I became a steward and was one of those people that I try to change now. You CAN'T win them all...it's a give and take situation sometimes.
  2. Baba gounj

    Baba gounj pensioner

    nah, no one would even think that.
  3. Fredless

    Fredless APWA Hater

    alright then...rock on. Lets bleed them till they die.
  4. freeloader

    freeloader geek

    I don't see that happening until they've exhausted all their other ideas first (to get stock price up). The ground segment isn't the most profitable, but it does provide UPS with an enormous customer base to which they can up-sell their services to. And look at the efficient (theoretically speaking) ground network that is already in place, established and optimized. If UPS unloaded the ground segment, they'd have to unload just about every ground hub along with it. That would mean having to re-create a distribution network and facilities and who knows what else. I just don't see that happening.
  5. Fredless

    Fredless APWA Hater

    Maybe not, maybe so?

    I'm just curious in the legalities concerned, with say a hedge fund purchases the package division to turn it around (theoretically the economy keeps going sour, we still want more money, more benefits etc) and UPS wants OUT of it.

    What happens if a Yucaipa buys us?

    FAVREFAN Member

    Fredless, you're way off and out of line for that matter. Specific numbers to follow.

    FAVREFAN Member


    FAVREFAN Member

    Click the link in the above reply. 3Q results. Print them, learn them. Ground is still 62% of our rev. and 72% of our profit. SCS is nothing yet. Only 17.5% of our 3rd Q Rev. and just over 3% of our 3rd Q profit. Sure, we are getting more and more diversified but don't get all excited about SCS. It is the smallest, I mean smallest part of our semi-conglomerate. Key to look at is the profit margins. SCS's is horrible. The more diversified we get, the safer we are. SCS needs to grow quicker and sooner.
    We are still a cyclical company though and therefore our stock is getting its beating. As the economy goes....so will we. Peace.
  9. Fredless

    Fredless APWA Hater

    Out of line? Ok right.

    Hence the title of the thread?
  10. MR_Vengeance

    MR_Vengeance United Parcel Survivor

    i think most people would thank the company for taking care of them if all the above came true. I guess we'll just take the extra stops and run some more until we take over fedex........
  11. Baba gounj

    Baba gounj pensioner

    UPS announced that they intend to borrow $10 billion to repurchase stock over the next 2 years and for growth in the oversea small parcel field. So it looks like they plan to keep ground service going.

    FAVREFAN Member

    72% of our 3Q profit was from ground. Ups ground is our company still. Without it, we are a speck in the business world. They are borrowing $10B now because the stock is very cheap. Total common sense. Buy low, right? Fredless, sorry to offend you, just such a far fetched thread. Did you look at the numbers? The truth is there.

    We will never buy FDX. We can't. Not going to get into this again. FDX stock would have to crumble. And the government won't ever let us buy them. Anti-trust laws.
  13. satellitedriver

    satellitedriver Moderator Staff Member

    From what I have been told,on average, we make (per package) 10cts profit on ground, $10.00 on NXDA, $88.00 on international.
    Investing in oversea delivery makes sense to me, when looking at the numbers.

    FAVREFAN Member

    The REAL NUMBERS of the accumulation of the entire operations/divisons are in the link I have provided above a few posts. I'm getting tired of the hearsay on this site. People need to leave the rumors in the rumor threads. It is amazing the crap I hear come out of people's mouths at work everyday. Now there is too much on here. One thing people need to distinguish is the difference between REVENUE and PROFITS.
    Hello Satellitedriver. Not sure where you got your numbers but they are not correct. I have read alot of your posts and respect you. Please, no offense. I'm just a piss on in Brown Cafe. But....check that link, has every stat/number you could want. Undisputable, those are the numbers. Go Brown!
    Last edited: Jan 9, 2008
  15. Fredless

    Fredless APWA Hater

    Whoa, chill the hell out Favrefan...I didn't say you offended me in anyway. Get off your damn high horse.

    I can't make this any more simple, LOOK AT THE TITLE OF THE THREAD - WHAT IF. Ok? Read that?

    I just wanted to know what would happen IF the economy keeps taking a turn for the worse and a hedge fund purchases our division? Did you not read where I said "like what happened to allied van lines?"

    Does the purchasing company keep the union or ?? THATS what I'm looking for. I don't give a crap about heresay or what not, I AM NOT a doomsday preacher...

    FAVREFAN Member

    Allright, I'm out.

    FAVREFAN Member

    No more posts from me anyways on this site. Peace out everybody.
  18. john61

    john61 New Member

    Favrefan - The 62% includes both ground and air.

    FAVREFAN Member

    Yes, you are correct. They are incuded together under "Domestic"
  20. Fredless

    Fredless APWA Hater

    Make sure you get every last marble...