seminolepilot

if it’s important to you put it in the survey. I’ve heard so many people say “that’s not high up on the list of my priorities” or “we’ll never get that” when someone presents an idea. If it’s something you feel that’s important put it out there. This was one for me also, SWA gets a stipend for medicals iirc.

tnkrdrvr

UPS sees sales, profit growth coming out of ‘difficult’ 2023

By: Kiel Porter | Mar 26 2024 at 12:29 PM | Air Cargo

United Parcel Service Inc. expects sales and profit to grow over the next three years as the courier overcomes soft demand for package delivery coming out of the pandemic.

Annual consolidated revenue will climb as high as $114 billion in 2026, UPS said Tuesday in a statement detailing financial targets. That would mark a sharp rise from last year’s total of about $91 billion. The company also expects its adusted operating margin to surpass 13% in three years.

“After coming off a difficult market in 2023, the small package industry is poised to return to growth in 2024 and beyond,” Chief Executive Officer Carol Tomé said in the statement. The company intends to target “premium markets” while focusing on improved efficiency and productivity.

The long-term outlook shows how the company is contending with the challenges of flagging volume and high labor expenses after reaching a costly new union agreement last year. Shipping demand has been impacted as shoppers buy more in stores post-pandemic and inflation crimps purchasing power.

The shares rose 2.8% before regular trading in New York.

Tomé has pushed a strategic plan since taking the reins in 2020 to become “better not bigger,” an initiative to focus on more profitable business potentially at the expense of volume growth. The effort helped UPS’ market value roughly double in her first two years.

The courier has faced increased competition lately, including from the United States Postal Service, which has hurt margins post-pandemic.

The company agreed to a new union labor deal last year that increases wages and benefits by an average of 3.3% over five years, with the biggest increase coming in 2024 with a 10% jump. The deal also sees upwards adjustments to pension and health benefits and other expenses, including a new paid holiday.

UPS said in January that it would cut 12,000 white-collar jobs — about 14% of its full- and part-time managers — to cut costs.

The company also said earlier this year it would explore the sale of its Coyote truck brokerage business. That came after UPS announced a deal to buy MNX Global Logistics in November for an undisclosed sum to build out its health-care transportation business, having previously bought Marken in 2016.

Smoked

After the surveys closed, has the union published openers for your upcoming negotiations? What are some of the prominent goals or desires of the pilot group? Money over QOL, vice versa? Any mention of two pilot flight decks? That would make your already solid scope a lot stronger.

jetlaggy

We dont do that...silent until TA

Cachaco

👆. If you release results, makes job easier for company to target specific items to achieve desired result of 50+1.

tnkrdrvr

Lots of people (including me) are frustrated by this. However, putting all that info out there would cripple our NC’s ability to achieve our goals, so I deal with my frustration and look forward to an industry leading contract. My only fear is how much ground needs to be made up across the board. Scheduling, pay, pension, B plan, etc. it all needs improvements. At the end of the day, the NC has to fight this for us, not much we can do to move the needle.

EMBFlyer

As you get closer to your openers, just remember to look to your southwest...that little town on the river with the big sporting goods store pyramid. DON'T do what they're doing!

Follow me for more negotiating tips.

opas76

+1

filler

Cachaco

Talking to the people that will be in the room, I beg to differ. We have a mature contract that needs tweaks, not home runs. Which provides less negotiating capital on many articles, rather focus on just a couple. Money is a given, work rules will be the big fight.

tnkrdrvr

Money is never a given and work rules will be a huge fight. Our pay will need to increase by roughly 25% to keep pace with the legacies, our pension by roughly 20% to keep pace with inflation since 2016 contract signing, and you are familiar with work rule improvements desired (some of which are win/win and some not so much). A lot rides on the macro economic environment and who is in the CEO seat. Carole appears to be reasonably amenable to rewarding labor. However, that can change quickly. Long story short, I’m not counting my chickens just yet.