Management (ERO) Early Retirement Offer

[j13501]

Many of the Baby Boomer Sup's and Mgr's I've spoke with would be very willing to take an ERO. We are wondering why one has not been offered this year with an out date of 1-2-09. Anyone with info please reply...

The management people who are closest to the packages (the operations mgmt) are the people that have the most pressure to perform, and are the most willing to take an ERO.
They are also the most necessary part of the mgmt team. In tough times, it's always better to be in job that is directly related to the pickup and delivery of packages.

That's why the ERO doesn't work. The company doesn't want center management teams to take a management buyout- they want support functions to take the buyout. But I'll bet those Baby Boomer sups and mgrs you're talking to, with the long hours, are mostly in operations. That's why I think normal attrition will be used to reduce the mgmt workforce.

 

[negrosangre]

It seems to me if there is going to be a management buy out offer, it will happen by mid December. This is because in the past, they have given people 2 weeks to commit to a package, and I would think they would want the commitments by the end of this year so the cost of the buy out could be written off this year.

Just my thought, (and hope).

 

[Catatonic]

It seems to me if there is going to be a management buy out offer, it will happen by mid December. This is because in the past, they have given people 2 weeks to commit to a package, and I would think they would want the commitments by the end of this year so the cost of the buy out could be written off this year.

Just my thought, (and hope).

Last one was by end of Feb.

 

[Catatonic]

The management people who are closest to the packages (the operations mgmt) are the people that have the most pressure to perform, and are the most willing to take an ERO.
They are also the most necessary part of the mgmt team. In tough times, it's always better to be in job that is directly related to the pickup and delivery of packages.

That's why the ERO doesn't work. The company doesn't want center management teams to take a management buyout- they want support functions to take the buyout. But I'll bet those Baby Boomer sups and mgrs you're talking to, with the long hours, are mostly in operations. That's why I think normal attrition will be used to reduce the mgmt workforce.

Agreed. That has been my take as well.

Last year, it was not an ERO but a focused SVSO (Special Voluntary Separation Offer) just for the Corporate office.
I did not take it so it wasn't 100% successful.

 

[negrosangre]

Last one was by end of Feb.

Do you mean the people separating had to stay to the end of Feb, or the offer had to be accepted by the end of Feb?

 

[Catatonic]

Last one was by end of Feb.

Do you mean the people separating had to stay to the end of Feb, or the offer had to be accepted by the end of Feb?

Had to be off payroll by end of Feb and technically, you could submit the paperwork on Feb 28th.
Submission period was from jan 1 - Feb 28th as I remember. However, you could change up through Feb 28th.

 

[What'dyabringmetoday???]

I am a FT driver but if someone wants to give me a check and ask me to leave and I will say "thank you" and be on my way.

I had an excellent response to this one but did not want to be accused of stalking again.

 

[UpstateNYUPSer(Ret)]

I had an excellent response to this one but did not want to be accused of stalking again.

I have read most of your responses and have yet to find one that I would call "excellent". Most of them leave me wondering whether you completed elementary school.

 

[Mike Hawk]

2 pages long and 5500 views already, wow.

 

[What'dyabringmetoday???]

I have read most of your responses and have yet to find one that I would call "excellent". Most of them leave me wondering whether you completed elementary school.

Again, it is funny how you feel free to attack others, but simply can not take it if anyone sends a barb your way. You are a big man here, but we all know how you are at work. I can handle anything you send my way, but I will try to cut back on how much I pick on you. And, yes, I made it through elementary school. I will likely never be as intelligent as you or able to keep up with your marathon posting schedule. Now get in there and sort your truck before start time.

 

[UpstateNYUPSer(Ret)]

Why don't you just STFU?

 

[What'dyabringmetoday???]

Why don't you just STFU?

Back on topic-I hope they offer our center manager an early retirement offer. That would be a good thing.

 

[jehardrock]

Recent rumor this week is an ERO for those who are 52 with at least 20 years of service. Also hearing that UPS will raise the retirement age to 60.....possibly higher. This will be announced in January '09. Not sure which RRDD(s) the ERO will be offered to.

 

[negrosangre]

How reliable to you think your source of this inforamtion might be? Just my thought - Taken indivudially, the two issues, i. e., (1) offer to 52 yr olds with 20 yrs service, and (2) raising retirement age to 60, may make sense, but taken together, if done at the same time, would seem counter productive. They know how many 52 yr olds with 20 yrs service, so based on past EROs, they should know approximately how many people would take the offer. But by raising the retirement age, seems like they would be giving up the natural attritution "weeding out". But, who knows what mgmt is thinking!!!

I would be happy with an offer to 50 yr olds with 15 years experience. Then I wouldn't care about the retirement age!!!

 

[Catatonic]

Recent rumor this week is an ERO for those who are 52 with at least 20 years of service. Also hearing that UPS will raise the retirement age to 60.....possibly higher. This will be announced in January '09. Not sure which RRDD(s) the ERO will be offered to.

The first part makes sense but I question why the second.
These two changes together are counterproductive.
Although a non-union person can retire at 55, it is at a reduced rate. This reduced rate (adjusted for NPV) comes out to the same amount paid out to the individual over their life of retirement.

 

[nhguy]

If there were to be an ERO the 52 and 20 makes sense, however, I think the second part of the statement would make sense as well. The reason I say that is if the retirement age was to be raised, this would force more people to take this offer. If your 52 and you can leave now without penalty and your other option is to not take it and wait until age 60 I think we all know how most people would decide.
The major concern is if you wanted or needed to continue working, the job market is going to be real tough to find yourself a second career.

I personally don't see a five year increase in the retirement age but a match to the teamsters 57 would make more sense.

Remember the big fish always eats the little ones.

 

[pretzel_man]

I guess every couple of months someone will revive the rumor about another ERO.

I have it from an extremely reliable source that another one is NOT in the works.

It makes no sense... We recently had an ERO. It had a low take rate. With the economy poorer now, the take rate will likely be worse.

I'm sure that when there is no announcement after the first of the year, someone will start a new rumor anyway.

P-Man

 

[Catatonic]

I guess every couple of months someone will revive the rumor about another ERO.

I'm sure that when there is no announcement after the first of the year, someone will start a new rumor anyway.

P-Man

OK, I'll take care of that.
I'm putting it in my Outlook as Task on January18th. I don't see a need for a conference call before then. I'll make the post on Jan 18 and we'll go from there.

 

[jehardrock]

As far as reliable sources.....who knows. This came from a Sr. Mgr who says they heard it from a "reliable source". Raising the retirement age makes sense to me as motivation for those offered an ERO to take it. I guess we'll see. Personally....I am 52 w/18 years. I hope the rumored 20 year limit is incorrect.

 

[negrosangre]

So is UPS going to follow FDX's lead in cutting salaries, 401K and possibly offer early out packages?

Or are we going to show we are a "better" company by hanging in there with status quo on people, and cut back elsewhere?