UPS Teamster Magazine, Summer 2011 - International Brotherhood ...

UPS Teamster Magazine, Summer 2011 - International Brotherhood ... UPS Teamster Magazine, Summer 2011 - International Brotherhood ...

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NEWS SUMMER 2011GLOBAL DELIVERYUnion Leaders Exchange Information and Bolster SolidarityNetwork meeting in Frankfurt, Germany.The purpose of this annual meeting isto review developments in global unioncoordination on global delivery companiessuch as UPS and FedEx.The Teamsters were among 80 unionparticipants from 28 countries in attendanceat the conference. Unions fromAustria, Belgium, Germany, Ireland,Netherlands, Turkey and the U.K. joinedthe Teamsters to discuss issuesconcerning UPS members acrossthe globe.“I heard many complaints that echoour own challenges including unfair productionstandards, misclassification, outsourcingand management opposition tounionization.” said Tim Beaty, theDirector of Global Campaigns for theTeamsters Union and a participant in themeeting. “We have to understand theirbusiness practices in the global supplychain in order to develop winning campaignstrategies, whether we’re trying tosupport UPS Teamsters or organize newworkers at FedEx.”The meeting provided the opportunityfor union representatives to share informationand ideas. Among the topics discussedat the meeting were organizing efforts atUPS by both the Turkish transport unionTumtis and the German union ver.di.Package Division Director Ken Hall hasoffered his support in both campaigns.FedEx’s international practices werediscussed at the meeting as well, includingtheir familiar reliance on subcontractors(called “Global Service Participants”abroad) and a recent strike by FrenchFedEx workers at the FedEx SouthernEuropean hub at Charles de GaulleAirport in Paris.The Teamsters Union has alwaysrecognized in the importance ofsolidarity with unions across theglobe. Never has this been as critical inlabor history as today, when companieslike UPS and FedEx generate huge profitsfrom their international business segments.Additionally, the impact of theTeamsters Union’s work is no longerlimited to our shores—we are connectedto package industry workers across theglobe by the nature of the supply chain.In late May, Teamster representativesattended the International TransportWorkers’ Federation-Union NetworkInternational (ITF-UNI) Global DeliveryUPS FreightSubcontractingArbitration UpdateAt a hearing in Dallas on May 5,UPS Freight requested anadjournment to review documentsand analysis that the unionpresented. The arbitrator grantedthe adjournment and a secondday of hearings has been scheduledfor mid-October. Checkwww.Teamster.org for updates.2 | upsTEAMSTER | SUMMER 2011 | www.teamster.org

ECONOMIC REPORT ON UPSDespite recession, UPS Reporting Record EarningsAs UPS Teamsters get closer to negotiations, it’simportant for members to have some insightinto UPS’s current financial state.The U.S. economy remains deeply impacted by highunemployment, with spending down and gas priceshigh. Nevertheless, United Parcel Service has more thanweathered the storm. In fact, the company had theopportunity to report some highly impressive earningsgrowth at its recent annual shareholder meeting.In April 2011, UPS reported first-quarter profits ofmore than $1 billion. Revenues for the first quarterimproved 24 percent from this time last year, from$11.73 billion to $12.58 billion. Average volume per day(for all segments of the business) also ticked upwardfrom 14.9 million during the first quarter of 2010 to 15million in the first quarter this year.UPS beat analysts’ expectations for the quarter, overcominghigh fuel prices and terrible weather conditions.Despite stiff competition from FedEx Ground, UPS’domestic package segment saw a huge increase in operatingprofit, which jumped 29 percent.The picture for UPS was rosy in its supply chainand freight segment as well. The numbers here werebetter than ever, with revenues up more than 23 percentover the prior-year period, and operating profitsup 44 percent.Teamster members have driven UPS’ growth into itscurrent industry lead. The chart below highlights thesteady growth in average daily package volumes over theyears spanning the current and prior contract, with onlya slight dip during the peak of the recession (thesenumbers are reported in UPS’s yearly 10-K filing withthe Securities and Exchange Commission). As can beseen below, package volumes are once again rising.“The hard work of UPS Teamsters has made thiscompany one of the most profitable in the country,”said Ken Hall, Package Division Director andInternational Vice President. “We know that when wereturn to the table to bargain the next contract, UPScannot cry poverty.”UPS Domestic Package Volumes *14,00013,50013,00012,50012,00011,50011,0002002 2003 2004 2005 2006 2007 2008 2009 2010* These are the average daily package volumes as reported in UPS 10-K filings to the SEC. The numbers are in millions.www.teamster.org | SUMMER 2011 | upsTEAMSTER | 3

NEWS SUMMER <strong>2011</strong>GLOBAL DELIVERYUnion Leaders Exchange Information and Bolster SolidarityNetwork meeting in Frankfurt, Germany.The purpose of this annual meeting isto review developments in global unioncoordination on global delivery companiessuch as <strong>UPS</strong> and FedEx.The <strong>Teamster</strong>s were among 80 unionparticipants from 28 countries in attendanceat the conference. Unions fromAustria, Belgium, Germany, Ireland,Netherlands, Turkey and the U.K. joinedthe <strong>Teamster</strong>s to discuss issuesconcerning <strong>UPS</strong> members acrossthe globe.“I heard many complaints that echoour own challenges including unfair productionstandards, misclassification, outsourcingand management opposition tounionization.” said Tim Beaty, theDirector of Global Campaigns for the<strong>Teamster</strong>s Union and a participant in themeeting. “We have to understand theirbusiness practices in the global supplychain in order to develop winning campaignstrategies, whether we’re trying tosupport <strong>UPS</strong> <strong>Teamster</strong>s or organize newworkers at FedEx.”The meeting provided the opportunityfor union representatives to share informationand ideas. Among the topics discussedat the meeting were organizing efforts at<strong>UPS</strong> by both the Turkish transport unionTumtis and the German union ver.di.Package Division Director Ken Hall hasoffered his support in both campaigns.FedEx’s international practices werediscussed at the meeting as well, includingtheir familiar reliance on subcontractors(called “Global Service Participants”abroad) and a recent strike by FrenchFedEx workers at the FedEx SouthernEuropean hub at Charles de GaulleAirport in Paris.The <strong>Teamster</strong>s Union has alwaysrecognized in the importance ofsolidarity with unions across theglobe. Never has this been as critical inlabor history as today, when companieslike <strong>UPS</strong> and FedEx generate huge profitsfrom their international business segments.Additionally, the impact of the<strong>Teamster</strong>s Union’s work is no longerlimited to our shores—we are connectedto package industry workers across theglobe by the nature of the supply chain.In late May, <strong>Teamster</strong> representativesattended the <strong>International</strong> TransportWorkers’ Federation-Union Network<strong>International</strong> (ITF-UNI) Global Delivery<strong>UPS</strong> FreightSubcontractingArbitration UpdateAt a hearing in Dallas on May 5,<strong>UPS</strong> Freight requested anadjournment to review documentsand analysis that the unionpresented. The arbitrator grantedthe adjournment and a secondday of hearings has been scheduledfor mid-October. Checkwww.<strong>Teamster</strong>.org for updates.2 | upsTEAMSTER | SUMMER <strong>2011</strong> | www.teamster.org

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