(news article) UPS, pilots wary as mediation set to end

[Big Beer Belly]

FedEx has already:

A) Publicly stated that the FedEx pilots are a part of the reason that the company is profitable and that we deserve a raise. Don't bother telling me that it's just media manipulation because I know that, but they did say it.

B) They've already offered us a raise. A crappy one, but a raise none the less. That fact alone says that they know which direction they need to be headed.

From UPS's spokeshole Norm Black:

<< ...
"We have essentially resolved a number of very sticky issues and we are absolutely confident we will get a new contract for our pilots that rewards them with a pay raise while allowing the company to stay competitive," he said.

UPS shares fell 7 cents to $74.83 in afternoon trading on the New York Stock Exchange. >>

(They're going to fall a LOT further!)

 

[Wise Guy]

V1andGo,

Dude, you're online order wasn't sent for free. You paid for it in the price of the merchandise you bought.

It seems to me that you would have those record profits going into the pockets of management and not to those who make the profits possible. To me you sound a bit like a..............manager.

 

[FlyBoeingJets]

UPS and FedEx are the last remaining carriers that offer great pilot contract and a generous retirement plan. It is however questionable, if such compensation and benefit packages will stand the test of time.
Although, freight companies do make boat loads of money. I seriously doubt that their executives are very eager to share these profits with their Pilots. With the airline industry in trouble and furloughed pilots all over the place, management will find willing and retain current employees, without increasing pay and/or benefits.

Additionally, the changes of the competitive environment in the freight industry will put further pressure on Pilot unions. One factor to consider is the aggressive move of DHL into the US market and their drive of global expansion. With DHL entering the US market and committing large amounts of resources to establish a ground operation, things are bound to change in the long-run. Domestically the future of freight appears to be on the ground and not in the air . The increased use of e-mail has stopped the growth of overnight express and may even cause this market sector to shrink. In fact, with the passage of the electronic signature bill in 1999 (if my memory serves me right), Banks, lawyers, mortgage companies, etc. conducted most of their business and legal documentation right over the net.

So, what can Brown do for you? Whatever it is that Brown does, the balk of it will be on the ground and involve logistic management, which is also the business sector for UPS and FedEx with the highest profit margins. These high margins may explain why DHL is putting so much effort into establishing a ground/logistic network. In my estimation, this is not the best bargaining position for any pilot union for negotiation.
Another aspect worth considering is the domestic use of ACMI. DHL is using two ACMI carriers in the domestic air freight sector to keep costs down. They simply play the A-Star guys against the ABX guys ---- steadily lowering the bar.

Some insist that a strong scope clause will prevent that from happening. But history shows it can be done. DHL did it despite a scope clause. They formed a holding company, split all operations into independent entities, sold and bought what they needed to operate a Ground ops., and then offered ACMI contracts to the independent airlines (ABX Air and A-Star). All legal and none of the Union contracts were able to prevent it. Besides all aspects that are the result of a negotiated contract can be renegotiated. (i.e. DAL, UAL, and USAirways with the 70-seater changes to their scope)
​

On the international front things are only slightly better. Due to the vast distances that freight has to travel, air cargo has a clear advantage in the equation of cost versus time. But, even in the international arena the torpedoes are in the water. DHL operates all its international air freight through ACMIs. Furthermore, Lufthansa and DHL are in the process to set up a company in China to operated MD11 with a chinese certificate. That does not give me the warm and fuzzy. The Chinese end-up with the funding and the logistical know-how to enter the US and European market as a low-costcarrier.
Additionally, Air Atlanta in Iceland and Air Bridge in Russia are expanding with 747's cheap labor ACMI capacity. And what about the threat of changing the rules on cabotage?

Is freight the next victim of cost cutting and globalization, not to mention the threat of cabotage?

What do you think?
​

Definitely food for thought. No one thought CAL, NWA, DAL, AA and UAL would ALL have their panties in a bunch. There is no dominant legacy carrier anymore with 'industry leading' wages. We all just knew two or more of these powerhouses would continue and airline pilots would continue to be well paid as a group. Even if someone had to endure a BK and start over they would rise to the top again. But that is now gone for the next 5-10 years. LCC's are ruling and will fight each other until the one with the lowest wages and debt comes out on top. Our wages may never come back up. Management and BK laws are big reasons, but the biggest is the loss of revenue.

Can this happen to cargo? Not right now. A change in the status quo will take a long time. Longer than it did in the passenger industry. But it might just happen in ten years or so. My prediction, if it does change, is that the change will be less dramatic. Pay will be tied to revenue. The good news for cargo dogs is cargo will always create more revenue. Especially express cargo. Higher wages will always be easier to justify. That is unless package rates drop.

 

[pilotyip]

V1andgo, stop dealing in reality, this a pilot board.

 

[V1andgo]

V1andgo, stop dealing in reality, this a pilot board.
__________________


What do you mean?

 

[V1andgo]

Quote:
Originally Posted by V1andgo
Last time I ordered on-line it was shipped UPS ground for free. So what I wait a day.

Yes, but in business, time is money - you simply cannot afford to wait a day.


That is true. But that is what Brown does for you. The value adding and the cost versus time benefits are managed by a Logistic company, such as UPS, FEDEX, DHL, to achieve best value.
I believe, the freight industry is not run for the sake of an airline but to move business. Some of the freight will be moved by airplane but in supply chain management cost is a factor that has to be balanced with value of time. Trucking and rail can do a lot of things in 2 days for business for less money and still meet Just-in-Time schedules.
Which may be the reason for the following fact:

Colography predicts that FedEx Corp. this year will transport more domestic ground shipments than domestic air shipments for the first time. "This is a watershed event, but not an unexpected one," said Ted Scherck, President, The Colography Group. "The gap between FedEx's air and surface shipment mix has been narrowing for the past seven years, starting about the time FedEx acquired the parent of the former Roadway Package System and challenged UPS' dominance of the domestic ground parcel segment."

 

[VaB]

Quote:
Originally Posted by V1andgo
Last time I ordered on-line it was shipped UPS ground for free. So what I wait a day.

Colography predicts that FedEx Corp. this year will transport more domestic ground shipments than domestic air shipments for the first time. "This is a watershed event, but not an unexpected one," said Ted Scherck, President, The Colography Group. "The gap between FedEx's air and surface shipment mix has been narrowing for the past seven years, starting about the time FedEx acquired the parent of the former Roadway Package System and challenged UPS' dominance of the domestic ground parcel segment."

Shouldn't you be in the negotiating room with the other company stooges right now. What a bunch of drivel.

 

[TonyC]

Today, 15:26 (news article) UPS, pilots wary as mediation set to end

V1andgo, stop dealing in reality, this a pilot board.

Today, 15:30 Buffett Makes $5.1B Bid in Power Industry

Pubs, there you go dealing in reality again, this is a pilot board

Today, 15:32 United Airlines F/O makes a stand!

Hey, Rick this is a pilot board, do not deal in reality.

Two things occur to me:


1) Broken record


2) Someone learned a new phrase today











Hey, at least it's not an anti-college rant.




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[Los1]

Guys -

I am jumpseating in June 1st...will YOU be there?!?
see ya in Memphis
Los11
ANC based MD-11 F/O

 

[VaB]

Guys -

I am jumpseating in June 1st...will YOU be there?!?
see ya in Memphis
Los11
ANC based MD-11 F/O

I wonder if they'll let me off reserve early to go?

"Oh Priscilla, I have a favor to ask"

 

[Los1]

take your cell phone, and GO!!

Los1

 

[klhoard]

I wonder if they'll let me off reserve early to go?

"Oh Priscilla, I have a favor to ask"

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I'll be there on Reserve-A as well. You can put your bags in my truck right next to mine. . . .
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Bought my hat two weeks ago. It's sitting on my mantle, ready to go. . .
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I want to look nice for Channel 3 news. . .
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Assuming we can trump the current Memphis political fiasco. . .
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[TonyC]

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I'll be there on Reserve-A as well. You can put your bags in my truck right next to mine. . . .
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Bought my hat two weeks ago. It's sitting on my mantle, ready to go. . .
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.
I want to look nice for Channel 3 news. . .
.
.
.
Assuming we can trump the current Memphis political fiasco. . .
.
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We don't hafta answer the phone after noon, right? I got my hat shipped last week - - they sent the wrong one. Anybody need to borrow an F/O hat if I don't get it exchanged in time? (7 3/8)

 

[klhoard]

We don't hafta answer the phone after noon, right? I got my hat shipped last week - - they sent the wrong one. Anybody need to borrow an F/O hat if I don't get it exchanged in time? (7 3/8)

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Well, technically 1230. They can give you late call with one hour notice. . .
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[AlbieF15]

I know its a cliche to say "...I'll be there in spirit...", but I do appreciate you guys that are there. I'm a bit too hobbled to jumpseat up to MEM to spend a day on my feet--at least for several more weeks, but I'm getting rested up. I imagine I'll get another chance in the future.