Mgmt ERO - What would you accept?

[dannyboy]

I think we need to utilize our extra people to do things to help reduce cost.

How selfishly un-American. Why reduce cost. We need to support the Gooberments "spend our way to wealth" program. Hell, lets give everybody a 200% raise, then get the gooberment to bail UPS out as well.

He said that he would be looking to purchase undervalued assets. This could be a company, equipment, facilities, etc.

How is it the famous line reads, sell when everybody is buying, buy when everybody is having a fire sale.

My sources do not stretch to the offices in Atlanta, but from what I have seen within district and region........I just hope you are right.

My retirement is based on what happens over the next 4 years.

d

 

[soberups]

I dont know enough about how the UPS corporate structure is set up to have an informed opinion on the merits of an ERO.

Common sense tells me, however, that fearful people tend to make stupid and selfish decisions whereas confident and secure people tend to make intelligent and pragmatic decisions.

I just hope that, once the economy has turned around, the "survivors" that are left managing this company aren't simply the ones who were dishonest and cutthroat enough to make their internal rivals look worse in order to hang on to their own jobs.

There is a difference between producing results and manipulating statistics.

 

[pretzel_man]

I dont know enough about how the UPS corporate structure is set up to have an informed opinion on the merits of an ERO.

Common sense tells me, however, that fearful people tend to make stupid and selfish decisions whereas confident and secure people tend to make intelligent and pragmatic decisions.

I just hope that, once the economy has turned around, the "survivors" that are left managing this company aren't simply the ones who were dishonest and cutthroat enough to make their internal rivals look worse in order to hang on to their own jobs.

There is a difference between producing results and manipulating statistics.

I think you are exactly right. I also think this is what Davis is trying to do. Not make scared decisions, but thoughful ones.

He is a good man. He said he want to get his message across to everyone. Next week he will have a video on UPSers.COM. I'm certain it will cover the items that were previously shared with me.

I encourage everyone to view it when its available.

P-Man

 

[trplnkl]

All I know about EROs you can put in a thimble, but I do know a few sups that I wish the company would make an offer they couldn't refuse.

 

[BigBrownSanta]

All I know about EROs you can put in a thimble, but I do know a few sups that I wish the company would make an offer they couldn't refuse.

Yes, I agree.

Less rumors, more action.

 

[pretzel_man]

Yes, I agree.

Less rumors, more action.

All I know about EROs you can put in a thimble, but I do know a few sups that I wish the company would make an offer they couldn't refuse.

I can remember two occurrences of buyouts. One in the mid 90's and the second a couple of years ago.

Technically, there is a difference between an early retirement and a voluntary seperation.

While the logistics and target audience of each is different, they were basically the same.

They are designed to reduce the amount of loss a management person has by leaving the company early. In general the losses are:
- Loss of MIP due to the 5 year payout
- Loss of Stock Options due to vesting
- Huge pension deduction due to leaving before 55

They come up with a calculation to reduce the loss in these areas. It should be noted that they don't just give you the same pension that you would have had at 55. Its still reduced, but without the huge penalty.

Then there is some seperation payout. Usually based on years of service. I think the last one was about 2 weeks pay for each year. I would have to check my paperwork to know for sure.

So, when its added up, the actual incentive is relatively low. Its best for people that really wanted to start a new career and just needed the "boost" to do to so.

Its really not the huge payoff people may think. Pretty much a fair "break even."

P-Man

 

[Channahon]

I've had recent conversations at a retirement party and spoke to a lot of UPS management who are either eligible to go this year, or within the next 2 years.

And the majority of them, are not planning on leaving, due to the stock price and economic conditions. So the 3200 management that generally retire, may not provide the job re-assignment for the extra management.

It is a very difficult time to retire for anyone today, although your pension is there, your other investments (Stocks, IRA's and 401K's) are pretty much 1/2 of what they were a year ago.

 

[trplnkl]

I can remember two occurrences of buyouts. One in the mid 90's and the second a couple of years ago.

Technically, there is a difference between an early retirement and a voluntary seperation.

While the logistics and target audience of each is different, they were basically the same.

They are designed to reduce the amount of loss a management person has by leaving the company early. In general the losses are:
- Loss of MIP due to the 5 year payout
- Loss of Stock Options due to vesting
- Huge pension deduction due to leaving before 55

They come up with a calculation to reduce the loss in these areas. It should be noted that they don't just give you the same pension that you would have had at 55. Its still reduced, but without the huge penalty.

Then there is some seperation payout. Usually based on years of service. I think the last one was about 2 weeks pay for each year. I would have to check my paperwork to know for sure.

So, when its added up, the actual incentive is relatively low. Its best for people that really wanted to start a new career and just needed the "boost" to do to so.

Its really not the huge payoff people may think. Pretty much a fair "break even."

P-Man

The one you mentioned from a couple of years ago, we didn't lose anyone from our center. But the one from the 90's (I forget what year) we lost 3 FT sups, two of them I hated to see go, good people. LOL, the third one was pretty much worthless.

 

[smf0605]

I can remember two occurrences of buyouts. One in the mid 90's and the second a couple of years ago.

Technically, there is a difference between an early retirement and a voluntary seperation.

While the logistics and target audience of each is different, they were basically the same.

They are designed to reduce the amount of loss a management person has by leaving the company early. In general the losses are:
- Loss of MIP due to the 5 year payout
- Loss of Stock Options due to vesting
- Huge pension deduction due to leaving before 55

They come up with a calculation to reduce the loss in these areas. It should be noted that they don't just give you the same pension that you would have had at 55. Its still reduced, but without the huge penalty.

Then there is some seperation payout. Usually based on years of service. I think the last one was about 2 weeks pay for each year. I would have to check my paperwork to know for sure.

So, when its added up, the actual incentive is relatively low. Its best for people that really wanted to start a new career and just needed the "boost" to do to so.

Its really not the huge payoff people may think. Pretty much a fair "break even."

P-Man

P - The ERO from '95 offered to those 50 and above did not have a reduction in pension for being under 55 (that's what made it an early retirement opportunity).

If there was a reduction in pension it was because the employee didn't have 25 years of service.

 

[Braveheart]

We got an on road that will not retire despite all including mangement wanting him to go.

He has over 25 years and is at least 55. I think he has 30 years. I bet he dies of a heart attack before he retires. I will be gone the day I hit the needed age.

You only live once.

 

[pretzel_man]

P - The ERO from '95 offered to those 50 and above did not have a reduction in pension for being under 55 (that's what made it an early retirement opportunity).

If there was a reduction in pension it was because the employee didn't have 25 years of service.

SMF-

I admit that in '95, I was not yet 50 so I wasn't offereed the ERO. As I recall, I was offered the VSB (buyout).

Here is what I meant. If one retired at 50 with 25 years of service, they didn't get the same that they would have if they retired at 55 with 30 years of service.

Did the '95 ERO do the same thing.

Many people thought that their pension in early retirement was the same as if they waited 5 years and had more service years.

Let me know if I don't have it correct.

P-Man

 

[TravelAgent]

Several folks have made very good points about the powers that be not offering an ERO but again, I'd like to know what would be acceptable to you? The reason I suggested 10 years seniority is so our Military Veterans who spent 20 years in the service and then came to work for UPS would be eligible.

 

[pretzel_man]

Several folks have made very good points about the powers that be not offering an ERO but again, I'd like to know what would be acceptable to you? The reason I suggested 10 years seniority is so our Military Veterans who spent 20 years in the service and then came to work for UPS would be eligible.

While everyone is pondering what you would accept, I strongly urge you to also pay close attention to the management report back DVD presentation.

Alan Hill said that NO ERO is coming. He also said that layoffs (while not in the plan) are not off the table.

There are 1500 management people without regular assignments right now. The intent is for attrition to deal with this excess.

If attrition doesn't happen, or if the economy gets worse, or if we can't control costs, or if we can't maintain service, or... There WILL be consequences.

The message in a nutshell:
Maintain service while
Controlling cost while
Growing the business while
Improving margin

I think everyone should watch the DVD a couple of times, and instead of thinking about a buyout that's not coming, think about how to properly get UPS out of this as a stronger company.

P-Man

 

[InTheRed]

I think everyone should watch the DVD a couple of times, and instead of thinking about a buyout that's not coming, think about how to properly get UPS out of this as a stronger company.

The answers are in other posts!

Fire everyone but the drivers!

I'll stop beating the dead horse now.

 

[BURMDPsupe]

Pretzel,

When was the Report Back DVD distributed?

M-

 

[pretzel_man]

Pretzel,

When was the Report Back DVD distributed?

M-

I think they went out last week. I saw it early last week.

Its pretty good. They talk straight about where we are and what we need to do.

It takes about 1 1/2 hours to go through.

P-Man

 

[smf0605]

While everyone is pondering what you would accept, I strongly urge you to also pay close attention to the management report back DVD presentation.

Alan Hill said that NO ERO is coming. He also said that layoffs (while not in the plan) are not off the table.

There are 1500 management people without regular assignments right now. The intent is for attrition to deal with this excess.

If attrition doesn't happen, or if the economy gets worse, or if we can't control costs, or if we can't maintain service, or... There WILL be consequences.

The message in a nutshell:
Maintain service while
Controlling cost while
Growing the business while
Improving margin

I think everyone should watch the DVD a couple of times, and instead of thinking about a buyout that's not coming, think about how to properly get UPS out of this as a stronger company.

P-Man

P - No, you have that right, but the years of service (25 vs 30) is really pretty negligable and was more than made up for when it came to the separation allowance.

 

[nackers]

I'm not in mgmt - but the ft hourly employees in my district are slowly being reduced to pt or given a buyout, which is only 20 wks severence. I have almost 28 yrs with the company but will only be 54 in Sept. During a meeting with HR I asked what would happen to me if there are no pt jobs left when they get to me - I asked if they would work with me until I was 55 and was told no. Made me feel good - 28 yrs and they could care less.

 

[Catatonic]

While everyone is pondering what you would accept, I strongly urge you to also pay close attention to the management report back DVD presentation.

Alan Hill said that NO ERO is coming. He also said that layoffs (while not in the plan) are not off the table.

There are 1500 management people without regular assignments right now. The intent is for attrition to deal with this excess.

If attrition doesn't happen, or if the economy gets worse, or if we can't control costs, or if we can't maintain service, or... There WILL be consequences.

The message in a nutshell:
Maintain service while
Controlling cost while
Growing the business while
Improving margin

I think everyone should watch the DVD a couple of times, and instead of thinking about a buyout that's not coming, think about how to properly get UPS out of this as a stronger company.

P-Man

Looks like attrition is taking place.

 

[Just Numbers]

I'm not in mgmt - but the ft hourly employees in my district are slowly being reduced to pt or given a buyout, which is only 20 wks severence. I have almost 28 yrs with the company but will only be 54 in Sept. During a meeting with HR I asked what would happen to me if there are no pt jobs left when they get to me - I asked if they would work with me until I was 55 and was told no. Made me feel good - 28 yrs and they could care less.

Yes it is a sad state of affairs. Glad I got out when I did. Maybe mgmt asking us to drum up volume wasn't such a bad idea after all.