UPS to cut 12,000 jobs 5 months after reaching union deal as revenue outlook for year disappoints

Source

Apparently, demanding substantial raises have consequences. What are your thoughts of UPS axing a bunch of jobs shortly after the Teamster negotiation deal?

 

Demanding raises doesn’t cost anything. These contracts are negotiated with high priced lawyers, I’m confident they didn’t agree to anything they can’t afford. Plenty of unions make concessions then still get hit with downsizing. Why shouldn’t these hard working men and women get a fair wage? Should they have to coupon cut to preserve ups stock values? Their profits in the last quarter was over 1.5 billion.

 

Hey, I thought layoffs are always Biden's fault.

One thing is for sure: The executives will not be hurting.

 

being profitable is not enough for corporatism, they have to be more profitable

 

Unions drive good companies either out of business or out of state. Wait till the ramifications of the auto industry union show their face as well. Reminds me of hostess.

 

car prices are coming down - almost like prices went up due to corporate greed

 

Substantially down and continues to go down, with Amazon now taking a share of the delivery service...

https://about.ups.com/us/en/newsroom/press-releases/financials/ups-releases-4q-2023-earnings.html

That said... $1.5 billion is a nice ditty, but when profits have declined 7.8% and your expected liabilities are going to increase substantially, any corporation will take defensive actions.. Unfortunately, at the expense of FTE's

 

We are in a time where it is tough for employers to find employees, hence the employees have a better negotiating position.

https://news.yahoo.com/finance/news/us-job-openings-unexpectedly-rise-151802044.html
The jobless rate has remained below 4% as companies hoard workers following difficulties finding labor in the aftermath of the COVID-19 pandemic.

 

Unions give morons negotiating power. These union leaders were the ones who pushed this contract ultimately lead to layoffs. I would bet money if it was left alone this wouldn’t happen. Forcing higher wages just like minimum wage always leads to jobs lost… always. There is usually a short lived economic increase then followed by job losses. Why do people rarely look at the union who forced their hand then blame the executives who’s hands were tied with union demands?

 

New car prices are still hyper inflated and auto loan delinquencies are increasing at an alarming rate.

 

The union doesn’t have to worry, management and contractors do.


On a conference call Tuesday morning, CEO Carol Tome said that by reducing the company's headcount UPS will realize $1 billion in cost savings. The job eliminations are anticipated to be among management roles and contractors, the company said.

 

they are, but they are coming down, most can't afford a 70-80k truck

 

12,000 folks hitting the bricks. Yet another mass layoff

 

the reality is, Amazon is delivering a lot more of their own stuff and using the USPS when they don't, UPS is not used very often anymore

 

The rightie propaganda victims in this thread are parroting the rightie line : Union bad, management good.

Until it turns out that the executives have raided the company with stock option grants and golden parachutes.

And in the end , it’s the line worker who suffers after putting in 10 or 15 years of work and having his benefits reduced because the Board gave away the company to keep their jobs.

 

the Republican run FED is trying to change that, they want to cool the hot Biden economy

as portions of the economy cool, they will blame it on Biden, vs the FED

 

The cuts are likely the source of the profit you are referring to

Profit is the balance of two factors, revenue vs expense. This means there are two methods to create profits, you either raise revenue, or you cut expenses. When businesses are growing they generally create profits by raising revenue, but when they are declining they maintain profits by cutting expenses. UPS' revenue has been declining, thus they are in the latter scenario

 

the lay-offs today do not make profits for the past

now those laid off may have made them profits previously, but laying them off now did not

and often they have to pay severance, so may take some time to even save after do to lay-offs

 

Always amazed that people have fully accepted the notion that "a company's only obligation is to it's shareholders" thus accepting that companies have no obligations towards it's employees or customers, but a union starting from the principal that "it's only obligation is to it's members" is unacceptable greed.
In this case, let's note that UPS granted the raise to the union members without laying any of the members off. Proof perhaps that they remain efficient and the backbone of the company and perhaps worth that raise? Management was not so lucky. Funny also that when Elon Musk guts a company of it's employees as he did with Twitter, it's an ode to efficiency and cutting out bloat, but when another company does it, it is because of Biden.
Lastly, let's note that UPS was 'disappointed' in financial results because they did not achieve the same numbers in 2023 that they did in 2021. In the no-duh department that one is a winner. I'm pretty sure there were less zoom calls in 2023 than 2021.

 

“Managers and contractor positions will make up most of the layoffs.”

Looks like UPS is getting rid of a lot of worthless people and keeping the union.

UPS is doing fine. Computers are replacing a lot of lazy managers and overpaid contractors.

 

I am quite confident that the 12,000 losing their situation do not view themselves as worthless people. Folks today are worse off than prior to the punitive Exec orders targeting fossil fuels which triggered inflation. Large scale layoffs are happening. The segment that is hiring is govt and food service. Not good news

 

Yeah, it's publicly share price driven hence the current greedflation. It's not new but it's also not sustainable for a middle and lower middle class. Forget the poor, everybody does.

 

You are an unbelievably confused rightist.

Did you even read the link in the OP? Or are you just here to blame Ole Joe for everything? LOL

 

UPS locally blamed Amazon indicating that Amazon ramping up its own distribution and delivery service was significantly cutting into their projections. Poor leadership equals job losses. Of course their ridiculous pay has had an impact....

 

I feel bad for you that you refuse to see cause/effect. Feel free to contact any of the newly cut 12k folks and tell them how great was attacking fossil fuel