Wouldn't PVD's be allowed under future contracts as well unless the Company agrees to include new language expressly prohibiting them going forward? All the Company has to do right now is make the PVD pay initiation fees and dues to the Union. What's a future contract gonna do unless UPS trades an express prohibition on them for a giveaway from the Union?
No. UPS is implementing the PVD's under the seasonal driver language. The justification for using them under the contract is that they are allowed under the peak season language. The same language that allows them during peak forbids them outside of peak. That is my understanding anyway.
Maybe, but that doesn't give UPS a free pass to make bad faith maneuvers around the Union contract.
I agree with you 100% on this. I would point out however that once UPS reaches 0% of market share, bad faith maneuvers and the contract itself with both be entirely moot.
I don't think the relatively lower ongoing dues associated with packing UPS with PVDs to regain market share would be much consolation or strengthening force to the Union or the hourlies it represents.
Again, I agree. I was not trying to suggest that PVD's, even year round would allow UPS to regain significant market share. That ship has sailed. UPS tried to rein in it's out of control cost growth differential to its competitors back in 1997 - and that effort failed spectacularly.
Since then, UPS has attempted to control cost growth in other ways such as reducing non-union staffing and compensation and through automation and now PVDs at peak. But those are all really just fingers in the dike, they serve only to delay the inevitable. I really believe the leaders at UPS are content running a business model that is profitable but not competitive at this point. They seem to be fine with just riding it out for however many decades it will take for the competition to erode that last 24% of market share.
My comment was purely hypothetical. Had UPS and the Teamsters been able to come to an agreement that would cap cost growth, and UPS held onto the market share, it would be around 3 times the size it is today with about 3 times the number of drives and other dues paying union employees.