BrownCafe

A decades-old problem is coming home to roost and the Teamsters want taxpayers to bailout their sinking ship.

Every year that passes, the trustees of the International Brotherhood of Teamsters’ pension funds get more and more desperate.

With several pension funds already going belly up and their biggest one—the Central States Pension Fund—losing $2 billion per year, time is running out.

Now, the Teamsters has come up with a new scheme that the union is trying to sell to Washington lawmakers—one that may require Americans to, ultimately, foot the bill.

About 800 to 1,200 new jobs could come to Tacoma when United Parcel Service moves into a large warehouse on the Tacoma Tideflats.

The international shipping giant recently landed a lease for the 770,000-square-foot space from Prologis, a San Francisco company that invests in industrial real estate.

These are new jobs coming to the region, a UPS spokeswoman confirmed on Tuesday. The company will hire in time to support the 2017 holiday shipping season.

UPS also has a freight-handling facility in Kent and a small customer service center in Fife. Both will remain open.

It’s no secret that United Parcel Service, Inc and FedEx Corporation are key beneficiaries of the e-commerce revolution. While that’s good news from a revenue growth perspective, it’s not necessarily a good thing from a margin and cash flow perspective. Both companies are facing margin pressure from growing e-commerce deliveries, and UPS in particular is having to ramp up capital expenditures and costs in order to support future growth.

In this context, let’s take a look at what’s going on at UPS and how it affects the investment proposition.