Originally Posted by
Naven
I'm glad the union negotiated the official open time and JA ban into this contract. While I think UPS would love an open time ban (because it would save them money), it is the JA ban that will hurt them. When boxes stop moving because no one will take the JA whatever furlough announcement is out there will be rescinded.
I think an OT ban might save them money now -- they could probably cover open trips with reserves (lots of CA reserve on the -400 now) and JA the rest, for a net savings. But if they put 200-300 guys out, there goes the reserves and then an OT ban would hurt -- they couldn't possibly cover everything with reserves and whatever they save in sending the cheapest labor on unpaid vacation would be lost in paying the expensive guys time and a half (assuming worst case and NOBODY observed a JA ban -- which obviously wouldn't happen). The result would be a lot of dropped trips...
I personally am hoping that UPS looks at it from a long-term perspective of customer loyalty (or complacency) and brand. If they reduce service and customers jump ship to say, FEDEX, just to save a few bucks in the short term, it's highly unlikely the customers will come running back once UPS increases service again. So, saving money in the short term could permanently cost them customer base and brand value. I guess a lot depends on how much business we do during peak.