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Reply to "UPS TO pay drivers $170,000"
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[quote=Anonymous]ups will focus on driving margins higher by going after asset light opportunities requiring minimal labor, and increasing eficiencies thru automation. first year is heavy hit as tmsters contract is front end loaded, as well as final year ..the middle years ups can gain ground ... ups thinks there is risk in fdx trying to combine networks -ground and air ..says it is very difficult to do and there will be execution risk ..however, if successful that would improve margins for fdx and be a bigger threat to ups with higher labor costs .. and then of course there is amazon .... Ups will eventually be a much smaller company.....with much lower volume.....as Amazon and FedX take market share....this will be a slow death spiral for UPS......you cannot pay delivery men $170 and compete.....The world is now going into a deep recession and the large companies that UPS is currently depending on will also be forced to cut cost by going to FedX , UPSP and Amazon....FedX will do fine and save billions by integrating their air and ground divisions....service quality will suffer some for a time however customers will prefer lower prices as we go into a recession. [/quote]
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