How Deep are UPS's Pockets?
As UPSspews its propaganda in PCMs about
how it is losing business to FedEx, Teamster
members are wondering what UPSs real finan-cial
situation is.
It turns out that UPS is one of the healthiest
companies around. Here's the real deal about
UPS's finances:
2001 a profitable year for UPS
UPSs earnings numbers show that despite the
recession and the events of Sept. 11, the com-pany
topped $30 billion in revenue for the first
time in 2001. In addition, UPS had its second
most profitable year in history, with $2.4 billion
in net profits after taxes. This means UPS
made over $10,000 in profit for every Teamster
member last year!
Teamsters have leverage
Profit and revenue figures are important. But
they don't tell the whole story about all that has
changed at UPS since the 1997 negotiations.
For example, in 1999 UPS became a pub-licly
traded company. With UPSs stock price
vulnerable to negative media coverage, our
union now has more leverage than in past
negotiations.
Also, the package business has become
more competitive, especially with FedEx mov-ing
into ground shipment. The truth is that UPS
has not lost business to FedEx. Instead,
FedEx Grounds recent increase in volume has
come at the expense of the post office, accord-ing
to UPS.
However, a recent survey by financial ana-lysts
Morgan Stanley found that 83% of large
shippers will divert some business away from
UPS if an agreement isn't reached with our
union. UPSs fear of diversion if there is a
strike gives us great power to win a strong con-
tract.
We need to keep the heat on our union offi-cials
to use our bargaining leverage to full
advantage by not settling the contract early,
while we build a visible contract campaign to
keep the pressure on UPS.
Black Thursday Catching On
UPS employees at several centers across the
country have organized Black Thursday,
wearing black clothing to work to mourn the
end of equal pay for part-timers and full-timers.
The actions highlight the 1982 agreement
between Teamster officials and UPSthat
allowed new part-timers to be paid $8 per hour.
The $8 rate for part-timers stayed in effect
until the 1997 contract, when it rose to $8.50.
Organizers of this national action ask that
all UPSemployees wear black on Thursdays
until part-timers are given a living wage.
Bargaining Update
IBTnegotiators have given very scanty reports
about the first bargaining sessions that took
place in early February. They have stated that
it was a successful weekbut also that UPS
negotiators left the talks early.
The next negotiations are scheduled for the
week of March 18 in Chicago. The talks will
continue to consist of non-economic issues,
including full-time jobs, overtime, the grievance
procedure and Article 40.
New Part-timer Brochure
A new brochure for part-timers at UPS is now
available. It focuses on important issues like
full-time jobs and higher pay, as well as what
part-timers can do to win these improvements.
Contact TDU at (313) 842-2600 or
www.tdu.org to get copies.
Contract Bulletin
Issue #3 February 28, 2002
