UPS Volume Down, Profits Up

UPS has made $3.5 billion in profits after taxes already this year and it’s not even peak yet. Corporate brass predicted yesterday that profits for the year could top $5 billion. Volume is down, but profits are up. How? Speed-up and subcontracting. 

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UPS announced robust profits on a conference call to release its third quarter earnings and its projections for peak. UPS made $1.26 billion after taxes in the three months alone and projects up to $1.6 billion during peak.

While UPS rakes in billions, some 9,000 UPS Teamster retirees have been put on notice that their pensions will be cut in half. 

UPS’s profit haul comes as ground volume in the U.S. has actually declined slightly for the first time in 4½ years because industrial production and business-to-business deliveries are down.

How is UPS making more money on fewer packages? First, through old-fashioned speed-up. The company is putting more packages on the trucks and using technology and virtual OJS’s to harass drivers into working faster.

UPS’s second profit-boosting tool is subcontracting. While business-to-business volume is down, profits from business-to-consumer deliveries, including online shopping orders, are up.

UPS is squeezing more money out of this growing segment of the market by exploiting SurePost and Access Point at the expense of Teamster jobs.

UPS recently acquired the Coyote Logistics and has announced plans to use the nonunion carrier to undermine Teamster feeder and sleeper-team work starting at peak.

Management is thinking ahead and being proactive; the Hoffa-Hall administration is not.

The result is higher profits for UPS, but declining working conditions and job growth for Teamster members.

We all want the company to do well. But union members are supposed to benefit from growing profits. Without strong International Union leadership to fight for our share, Brown’s growing profits will be made at our expense. 


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  • followed this page 2016-10-21 09:53:13 -0400
  • commented 2015-10-30 04:00:44 -0400
    Truth at last
  • commented 2015-10-29 03:11:27 -0400
    UPS profits up again, what a surprise. If UPS had any integrity or gave a damn about their retirees they would make up the difference that Central States is cutting our pension. We all gave the biggest parts of our lives for UPS , bad backs, worn out knees, missed ball games our kids were in, sacrificed everything for the company and how do they repay us? I hope all you current UPS employees realize just how chicken shit a company you work for and hold their feet to the fire next contract. They will throw you under the bus just like they have done us. Next time the company asks you to work a little harder or longer hours, just remember what your reward will be. Just look what their retirees reward was, You’ll be next.
  • commented 2015-10-28 21:11:52 -0400
    We need to vote hoffa out of office in 2016. We need leadership that will work for the members not for themselves. Just getting hoffa out isn’t enough. We need all of his yes men out of our locals as well.
  • commented 2015-10-28 17:04:38 -0400
    That’s nice they threw 9000 of us under the bus. We all worked long hours gave up so much and this how they repaid us. But if you retired in Jan of 2008 that’s different. You get your pension for now how long do you think it will take UPS to try and figure a way out of that" make whole "clause in current contract. MY money on the fact they are working on it as I write this.. Thanks UPS for the worn out shoulders, knees, and back and 25 years of hard work.. What is real nice is some of the part-time employees will get a bigger pension check from the UPS pension plan than the full time retired drivers after CSPF cuts. So much for the old were are all part of the team crap. We are the red-headed step child. Good looking out UPS and Teamsters.
  • published this page in News 2015-10-28 12:21:01 -0400