2020 MIP

[MyTripisCut]

These idiots that think working for a profitable company is a bad thing…

Maybe you have it the other way around?

compare with UPS' direct competitor...why didn't they have record profits like every large company?

UPS outperforms its peer on trailing twelve-month EBIT and bottom line performance on a quarterly basis. It increased its EBIT by 15.36% year over year, while FDX experienced negative growth of -10.68%. Finally, UPS increased its bottom line by 19.01% in the same quarter last year, while FDX reported a negative -6.14% YoY.

UPS's direct competitor is Amazon; FedEx made a bad bet with Ground so comparing them is a joke

Time for businesses to humanize — or die

The hottest new employee benefit is basic human decency

theweek.com

From the above article.
But there are sound business reasons to invest in one's workforce, too, especially right now. For example, at Bloomberg, Thomas Black draws an instructive comparison between UPS, which is unionized, and FedEx, which is not. UPS pays the best salaries in the industry, and also has good benefits and reasonable hours. FedEx, by contrast, uses contract workers for most of its last-mile deliveries — part of a classic exploitative business model that pushes as much cost and risk onto workers as possible.

The difference is beneficial for the whole company. In fact, UPS brass ought to write a thank-you note to the Teamsters who helped create their style of operation through organizing and massive strikes. High salaries, good benefits, and decent work conditions have helped UPS retain its workforce and deal with pandemic-related labor problems and enormous delivery volumes. Because of that high labor investment, UPS is collecting big profits and retaining a 95 percent on-time delivery average, while FedEx is hemorrhaging contract workers — losing $450 million and counting on labor issues — while pushing on-time delivery down to 84 percent and denting its stock price.

 

[worldwide]

UPS's direct competitor is Amazon; FedEx made a bad bet with Ground so comparing them is a joke

UPS has many competitors and certainly Amazon is one of them (in addition to being the largest UPS customer) but to insinuate that FedEx is not a direct competitor is absurd. Carol specifically calls them on on the earnings call and internal videos when discussing the competition. So why has UPS had superior profits and performance lately vs FedEx? They are a large company so simply curious why they have no had "record profits" as you posted.

 

[TearsInRain]

UPS has many competitors and certainly Amazon is one of them (in addition to being the largest UPS customer) but to insinuate that FedEx is not a direct competitor is absurd. Carol specifically calls them on on the earnings call and internal videos when discussing the competition. So why has UPS had superior profits and performance lately vs FedEx? They are a large company so simply curious why they have no had "record profits" as you posted.

I answered you already, their entire Ground model is total trash

 

[MyTripisCut]

UPS has many competitors and certainly Amazon is one of them (in addition to being the largest UPS customer) but to insinuate that FedEx is not a direct competitor is absurd. Carol specifically calls them on on the earnings call and internal videos when discussing the competition. So why has UPS had superior profits and performance lately vs FedEx? They are a large company so simply curious why they have no had "record profits" as you posted.

Did you read the quote or any of the article I showed you?

 

[worldwide]

Did you read the quote or any of the article I showed you?

Yes, I did. A dedicated employee workforce is certainly a strong advantage, no doubt. It was not that long ago, however, that the situations were reversed and FedEx earnings were putting UPS earnings to shame, especially on the ground side. This was occurring for many years so I don't think one can argue that simply because UPS is union and Fedex is not is the primary reason for UPS' recent string of successful quarters. The reply that "the entire Ground model is trash" can't be entirely accurate when Fedex Ground was having record earnings and beating UPS for years and years.

It was also interesting that the article mentioned jobs with "repetitive stress injuries and back pain" and noted that "a job this horrible is one most reasonable people would never take if they could avoid it, no matter the compensation." One could argue that UPS package care driver jobs fit this description, despite the author of the article also saying UPS has "decent work conditions" and "reasonable hours." Quite a few people on this site would strongly disagree with those descriptions of a UPS job. So, it can't simply be better pay and benefits and union workers that have caused UPS' increased financial results but as I previously said, a steady, dedicated workforce is certainly a strong advantage for UPS.

One thing that has changed in the past year is that UPS has got very selective in which customers it wants and has let go quite a few large customers that were marginally profitable. The analysts have been telling UPS to do this for years on earnings calls and with the change in C-level leadership, this has finally happened. UPS has also been very strategic in rate changes and how it applies accessorial charges on large/oversize shipments and one requiring additional handling. A lot of the recent financial success of UPS has been due to these pricing changes.

 

[IVE GOTTA PACKAGE 4U]

Yes, I did. A dedicated employee workforce is certainly a strong advantage, no doubt. It was not that long ago, however, that the situations were reversed and FedEx earnings were putting UPS earnings to shame, especially on the ground side. This was occurring for many years so I don't think one can argue that simply because UPS is union and Fedex is not is the primary reason for UPS' recent string of successful quarters. The reply that "the entire Ground model is trash" can't be entirely accurate when Fedex Ground was having record earnings and beating UPS for years and years.

It was also interesting that the article mentioned jobs with "repetitive stress injuries and back pain" and noted that "a job this horrible is one most reasonable people would never take if they could avoid it, no matter the compensation." One could argue that UPS package care driver jobs fit this description, despite the author of the article also saying UPS has "decent work conditions" and "reasonable hours." Quite a few people on this site would strongly disagree with those descriptions of a UPS job. So, it can't simply be better pay and benefits and union workers that have caused UPS' increased financial results but as I previously said, a steady, dedicated workforce is certainly a strong advantage for UPS.

One thing that has changed in the past year is that UPS has got very selective in which customers it wants and has let go quite a few large customers that were marginally profitable. The analysts have been telling UPS to do this for years on earnings calls and with the change in C-level leadership, this has finally happened. UPS has also been very strategic in rate changes and how it applies accessorial charges on large/oversize shipments and one requiring additional handling. A lot of the recent financial success of UPS has been due to these pricing changes.

Before covid the network had a little extra capacity and you could afford to have a few extra shippers even though you wasn't making a big profit he was still making something. But if we keep these same people on and have to spend the money to expand, hire more people and buy more vehicles a little bit of profit we make from them and will not be enough to pay for it

 

[meritocracy]

Only a matter of time until FedEx goes bankrupt or is acquired by UPS or Amazon.

 

[TearsInRain]

Only a matter of time until FedEx goes bankrupt or is acquired by UPS or Amazon.

more likely broken up and acquired by amazon competitors

 

[JR Ewing]

compare with UPS' direct competitor...why didn't they have record profits like every large company?

UPS outperforms its peer on trailing twelve-month EBIT and bottom line performance on a quarterly basis. It increased its EBIT by 15.36% year over year, while FDX experienced negative growth of -10.68%. Finally, UPS increased its bottom line by 19.01% in the same quarter last year, while FDX reported a negative -6.14% YoY.

They must have taken the volume UPS no longer wanted

 

[johnbuck]

I believe MIP is distributed in March. What if i leave UPS in February. Would i still gEt the 2021 MIP?

 

[IVE GOTTA PACKAGE 4U]

I believe MIP is distributed in March. What if i leave UPS in February. Would i still gEt the 2021 MIP?

Seriously you couldn't wait another month?

 

[johnbuck]

Seriously you couldn't wait another month?

Lol from now its 3 months. Just trying to figure out the earliest i can dip the out of here and still get my money. I feel like my money is being held hostage

 

[IVE GOTTA PACKAGE 4U]

Lol from now its 3 months. Just trying to figure out the earliest i can dip the out of here and still get my money. I feel like my money is being held hostage

I don't know what to tell you but I wouldn't chance it . You know if they can screw you they will

 

[What'dyabringmetoday???]

Before covid the network had a little extra capacity and you could afford to have a few extra shippers even though you wasn't making a big profit he was still making something. But if we keep these same people on and have to spend the money to expand, hire more people and buy more vehicles a little bit of profit we make from them and will not be enough to pay for it

Is you shore about that.

 

[Fenris]

I believe MIP is distributed in March. What if i leave UPS in February. Would i still gEt the 2021 MIP?

If you leave in February, you would still get the cash portion of the MIP in March. If you are quitting, rather than retiring, you would not get RSUs. If you leave prior to the vesting of prior years RSUs, you would lose those.

 

[CHEMA-DELMA]

If you are going to leave stay until you have cash in hand otherwise you will NEVER see it. The RSU was such BS. another way to make you wait for your money, MIP takes 6 years to get your total payout. Let's review:
say you get $10,000.00
You get 1/2 that in cash if you want it now =$5,000.00
They you get the rest is a 5 year payout = $1,000.00 per payout.
What a joke, and whey you retire you still have to wait on the RSU.
Some IE guy came up with this plan for sure.

 

[DaveA]

If you are going to leave stay until you have cash in hand otherwise you will NEVER see it. The RSU was such BS. another way to make you wait for your money, MIP takes 6 years to get your total payout. Let's review:
say you get $10,000.00
You get 1/2 that in cash if you want it now =$5,000.00
They you get the rest is a 5 year payout = $1,000.00 per payout.
What a joke, and whey you retire you still have to wait on the RSU.
Some IE guy came up with this plan for sure.

The RSU wait was changed to one year, FYI.

 

[CHEMA-DELMA]

The RSU wait was changed to one year, FYI.

Thanks I will check and see but the last time I looked I was waiting for them to drop in

 

[Karma...]

I agree........and if you left the company would keep that which was left-over.....very dishonest and deceitful.......I am surprised that this was allowed to goon as well as go on.....

 

[Brownwifey]

Actually, the vesting of RSU's was changed to one year, but the LAPSE schedule is still 20% for five years. So for $1000 RSU's you would wait 1 year (100% vested, 20% lapsed), year 2 (20% lapsed), year 3...... . If you retire, all your RSU's vest immediately but lapse as per the normal schedule. Ridiculous, but true.