Teamster Alert—UPS is Looking to Cut Costs

Amazon and e-commerce continue to be a game-changer at UPS. The company’s top brass announced today they will look to cut costs. When the next contract is negotiated, UPS Teamsters need to be ready to defend our jobs. 


UPS made adjusted profits of more than $5 billion in 2016. But Amazon and e-commerce cut into those profits—and management is promising investors to cut costs.

The company reported a huge shift in the amount of volume that went to residential customers versus business delivery in the fourth quarter.

Fifty-five percent of volume was e-commerce and other business-to-consumer deliveries. Packages were delivered to nearly 2.5 million new addresses.

Delivering to individual residential customers costs more than multiple shipments to businesses. The “last-mile” of delivery is the most expensive.

UPS management is determined to cut those costs. That’s what Surepost is about—and they have told investors more cost-cutting is on the way.

Today, the company told investors it will spend $4 billion to expand capacity and automate hubs. Three hubs have been automated so far. UPS said 30 to 35 more will automated in all.

UPS is also looking to cut costs by subcontracting feeder jobs to Coyote Logistics.

Here’s what doesn’t cut costs: creating more full-time jobs, increasing part-time wages, and hiring more drivers to reduce excessive loads, 9.5 violations and harassment.

UPS made over $5 billion in profits last year. Management is promising even higher profits next year.

UPS Teamsters have five billion reasons to reject any contract that includes concessions or cost-cutting at our expense. It’s time for UPS to deliver for us.

UPS Teamsters need to be ready to fight for the contract we deserve.

Read More: The Suprising Way an Online Shopping Surge Crushed UPS Earnings

Showing 3 reactions

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  • David Thayer Sr.
    commented 2017-02-06 20:58:09 -0500
    I could care less about that shit company and Thier communist treatment I only wish the worst for that toilet
  • Lori Essig
    commented 2017-02-06 20:30:38 -0500
    Absolutely David. I worked there for 26 years and would never do it again; especially after the CSPF fiasco. They were awful towards me. Of course I was awful right back at them.

    Re: that Surepost. I hate that. Some time ago I ordered something that I wanted quickly. They sent it by Surepost and drove right by my house to the post office and since the next day was a holiday I had to wait any extra day.
    I request the USPS if I want something quickly.
  • David Thayer Sr.
    commented 2017-02-02 04:20:09 -0500
    Ups is one of the most harrasing companies out There.i know I had 20 years of my life there.they follow you with stop watches they track your every movement with GPS.they lie to your face,treat you like dirt,you will never ever see your family during November or December to have dinner with.if you have a family member dying they expect you to be working not with your family,and they will threaten you with hell with ups
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