brownIEman
Well-Known Member
Sounds like your reading from a script! UPS IS STOP PROOF! The "Partnership" died along with the "Policy Book" and all the traditions that made UPS a great company when UPS decided to chase the dollar and become a publicly traded company. Now we are slaves to Wall street. Get out of your cubical and talk to real UPSer's, Union and Non-Union and you'll find that this is a very unhappy place. Ultimatly sevice and customers will pay the price and we will fade into the history books. I am glad that you recognize that UPS is not negotiating in good faith and destroying the lives of many good people and their families. What a great company!
BTW- I don't hate UPS...I hate what they have become.
You are missing the cause and effect that so many miss about what happened 10 years ago. UPS did not change because it went public. The change and going public were both symptoms of the same thing. There has been a sea change in the market UPS is in. UPS finally, after decades and decades of growth reached near market saturation in the domestic US small package market. When a company is constantly expanding into new territories and serving new customers, growth comes almost automatically. And when growth is near automatic, production concerns and costs to serve are masked. This was UPS life up until about 20 years ago. But what happens when you are serving all the customers? What happens when you finally get serious competition from lower cost players entering the market? These are huge changes in the life of a company, and the execs at UPS saw the writing on the wall years ago. Through the 90's we experienced great growth as the internet revolution made changes in retail and the just in time business models combined to explode the US small package market. Even in those times, UPS recognized that while our total volume was going up, it was because the UPS small package pie was ballooning. Our piece of that pie as a percentage, our market share, was shrinking. They saw that a decade or two in the future, when the changes stabilized, so would the market and our volume would shrink if we could not stop and reverse the loss of our market share. So they took steps to control the growth of costs to make ourselves more competitive. In 97 they took these cost concerns to the IBT, and in return the IBT tried to destroy the company.
So, if you can't control costs any further, how can we continue growth? Well, maybe other markets to expand into, other revenue sources. So UPS did so aggressively. But to do that, you need capital, and lots of it. Two general options, borrow a ton, which puts you in a dangerous position by taking on huge long term debt you have to service (creating yet more costs) or, sell stock, go public.
Everyone seems to like to look at going public as the moment the party died at UPS and things change. I am telling, IMO, going public was just another symptom in the changes in the market that had already shut the party down.
and btw, I would respectfully ask that you not quote the whole we are unstoppable thing to me. No offense to any internal PR folks reading this from corp, but that slogan is just, well really, really gay.