UPS Strike

Gman12

Lil-Rokslider
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Aug 27, 2020
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It will be bad if the strike happens. FEDEX & USPS have both already stated that they cannot handle the volumes. It will be a mess and will impact nearly everyone to some degree.
 

LFC911

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I can see this going one of two ways:

Scenario A - UPS and Teamsters come to an agreement at the last minute, no strike, both sides got some of what they wanted, minimal impact to UPS as a whole and UPS maintains thin margin as market leader.

Scenario B - Teamsters go on strike, massive logistics impact and delays, UPS customer sentiment decreases, FedEx gains larger share of market, , government steps in and forces drivers back to work, both sides come to an agreement, strike is resolved, UPS ultimately cuts jobs due to decreased package volume and FedEx becomes the market leader.

FedEx UPS Market Share.JPG
 
Joined
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It seems like supply and demand. If I go in and interview with UPS to be part time it sounds like it pays $16 an hour. If I don't like the $16 an hour I'll find a different job.

If I go from a part time package handler to a driver wouldn't I know that there is zero AC? Again couldn't I decide to get a different job?

If it is so bad I assume there are 100's of openings for part timers and drivers at UPS?
 

z987k

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I can see this going one of two ways:

Scenario A - UPS and Teamsters come to an agreement at the last minute, no strike, both sides got some of what they wanted, minimal impact to UPS as a whole and UPS maintains thin margin as market leader.

Scenario B - Teamsters go on strike, massive logistics impact and delays, UPS customer sentiment decreases, FedEx gains larger share of market, , government steps in and forces drivers back to work, both sides come to an agreement, strike is resolved, UPS ultimately cuts jobs due to decreased package volume and FedEx becomes the market leader.

View attachment 579599
Fedex doesn't have the capacity to pick up all that much of UPS' volume. The fedex pilots also just voted their TA down today, so they're not going to be helping fedex move anything extra.
 

LFC911

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Fedex doesn't have the capacity to pick up all that much of UPS' volume. The fedex pilots also just voted their TA down today, so they're not going to be helping fedex move anything extra.
Not sure what the US ratios are but here at my company 95% of our parcel is ground, so the 5% that the pilots touch is not that much of the overall volume. Believe it or don't our FedEx rep said they could handle 30% more of their normal volume and wouldn't be taking on any new (commercial) customers if they weren't currently using them before any potential strike. FedEx said current customers would be on allocation based upon volume from last week (7/17).

"FedEx Partner -

“We are committed to protecting capacity and maintaining strong service levels for existing and actively shipping customers in the event of a market disruption due to the ongoing negotiations between UPS and the Teamsters Union. Over the last six months, we have been actively communicating with current and potential customers and urging them to transition business while capacity is available. Time is now running out. To ensure we protect our network, service levels, and committed customer capacity, we will accept additional volume for a limited time. We have unique approaches for different cohorts that can be found below. Should a work stoppage occur, volume above our baseline measurement for each cohort cannot be guaranteed for acceptance into the network.”

Please understand that FedEx will be taking a baseline snapshot of volume the week of July 17-21. Volume from the week of July 17-21 will be used as the baseline measurement for capacity. Should a work stoppage occur, volume above our baseline measurement cannot be guaranteed for acceptance into the network if not onboarded within the snapshot window."
 

TandKHunting

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I can see both the good and bad when it comes to Unions. The good? It keeps corporate in check and gives the ability for the "small guy" to have a voice. The bad? The small guy can literally hold a company hostage, and in this specific case, potentially inflict a massive amount of damage to the countries economy, including severely impacting the financials of small to medium size businesses all over the country.

It's easy for folks to say, "just pay them". It's not really that simple. Company leadership has to crunch the numbers and see if it's actually sustainable for future growth and profitability. With a company the size of UPS..this could take weeks if not months to figure.

If a company isn't profitable then lay offs occur. These same folks fighting for a $8-10 per hour increase of pay could be out of a job in a year or two if UPS can not sustain the influx of higher wages. I have no idea what kind of people are running UPS, but they may not necessarily be "greedy". I would assume they are doing their job. Crunching numbers, running tests, and making sure a massive pay increase is actually sustainable without throwing extra costs to the customer, or potentially having to conduct lay offs in a year due to cash flow issues.

A company can be extremely profitable one day, while filing for bankruptcy the next day if smart financial choices are not made at the higher level. That's why corporate folks make the money they do. They have to make decisions that could have catastrophic consequences. Every day workers may not see that, but making the "big boy" decisions of a company this size is like playing quarterback in the Super Bowl. You can either be a hero, or be the guy that lost it all.

Just my perspective as someone who runs a business. By all means, if UPS can afford such a pay increase without impacting financials in a drastically negative way....they should. I pay my people the best I financially can; sacrificing the margins my competitors make to do so. I come from a middle class working family, so I will always be in the working man's corner.
 
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twalk2

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Jul 19, 2023
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42
Seems like everytime I get a package from ups the box looks like it's been drop kicked and drug through the mud
 

z987k

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Not sure what the US ratios are but here at my company 95% of our parcel is ground, so the 5% that the pilots touch is not that much of the overall volume. Believe it or don't our FedEx rep said they could handle 30% more of their normal volume and wouldn't be taking on any new (commercial) customers if they weren't currently using them before any potential strike. FedEx said current customers would be on allocation based upon volume from last week (7/17).

"FedEx Partner -

“We are committed to protecting capacity and maintaining strong service levels for existing and actively shipping customers in the event of a market disruption due to the ongoing negotiations between UPS and the Teamsters Union. Over the last six months, we have been actively communicating with current and potential customers and urging them to transition business while capacity is available. Time is now running out. To ensure we protect our network, service levels, and committed customer capacity, we will accept additional volume for a limited time. We have unique approaches for different cohorts that can be found below. Should a work stoppage occur, volume above our baseline measurement for each cohort cannot be guaranteed for acceptance into the network.”

Please understand that FedEx will be taking a baseline snapshot of volume the week of July 17-21. Volume from the week of July 17-21 will be used as the baseline measurement for capacity. Should a work stoppage occur, volume above our baseline measurement cannot be guaranteed for acceptance into the network if not onboarded within the snapshot window."
Fedex moves a lot more by air than UPS does. They do a lot more overnight or 2nd day stuff.
The saying is Fedex is an airline with some trucks. UPS is a trucking company with some airplanes.
 

dtrkyman

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Oct 2, 2014
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3,189
Always have my best luck shipping through UPS, their tracking is great.

Hope they reach a resolution quickly, strike or not!

People saying it is not a skilled job, finding any reliable person now is a skill itself!
 

ladogg411

Lil-Rokslider
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Jan 11, 2023
Messages
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I believe the slow-down by the union drivers has already started. Today is day #3 where my UPS package is supposedly on a truck to deliver, but it doesn't get delivered. No explanation, it just doesn't deliver and bumps to the next day.

The union wants to maximize the number of packages held up in the system during the strike.
 
Joined
Sep 30, 2017
Messages
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I believe the slow-down by the union drivers has already started. Today is day #3 where my UPS package is supposedly on a truck to deliver, but it doesn't get delivered. No explanation, it just doesn't deliver and bumps to the next day.

The union wants to maximize the number of packages held up in the system during the strike.

I think your right had a pair of boots supposed to be here Saturday tracking shows they are still sitting in a wear house and haven’t moved at all in a few days now


Sent from my iPhone using Tapatalk
 

Rich M

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The unions have unrealistic goals. Remember the unions killed the Twinkie? Shut the business down and cheered. Then they had no job and were still mad at the company? Duh…

They will ultimately hurt themselves. The rest of us go find another job. Unions strike and screw things up for as many people as possible.
 

Lonebow

FNG
Joined
Jul 20, 2023
Messages
27
Location
Phoenix
I believe the slow-down by the union drivers has already started. Today is day #3 where my UPS package is supposedly on a truck to deliver, but it doesn't get delivered. No explanation, it just doesn't deliver and bumps to the next day.

The union wants to maximize the number of packages held up in the system during the strike.
not enough space on the delivery truck if the package was bulky, off shipped and the service you paid for is the lowest tier..Amazon does it as well
 
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