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3,800 UPS workers strike in Canada

Posted by | Nov 23, 2004 | |

About 3,800 United Parcel Service workers in Canada went on strike yesterday, refusing the shipper’s new collective bargaining agreement offers, according to Teamsters Canada. UPS said it would deliver all packages already in transit but suspended all customer pickups within Canada as well as ground shipments into the country. The Canadian employees’ contract expired July 31. UPS met with the union during the past five months, and Canadian Teamsters management entered into a handshake agreement about a month ago.

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Blue Dart arm sale cleared

Posted by | Nov 23, 2004 | |

Following DHL Worldwide’s proposal to acquire 68 per cent equity stake in Blue Dart Express, the company is hiving off its aviation business into a separate entity to avoid violation of foreign equity investment norms. According to foreign equity participation norms, foreign airlines are not permitted to pick up equity, directly or indirectly, in domestic air transport services. Courier and express company Blue Dart Express has approved the sale of its 100 per cent subsidiary Blue Dart Aviation to its promoters Tushar Jani and Khushroo Dubash.

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US Postal Service looking for rate increase

Posted by | Nov 23, 2004 | |

The US Postal Service will seek approval for a 10 percent increase in postage rates early next year, according to a report published Wednesday. First-class stamps, which have risen 12 percent since 2001, would increase to at least 41 cents, the Wall Street Journal reported in a story on its Web site. The last price increase was in 2002. According to the report, the unusually large size of the expected rate increase stems partly from the demise of proposed legislation that would have allowed the postal service to take advantage of about USD3 billion a year in pension-fund savings resulting from a change in how it contributes to a federal retirement fund. The legislation also would have freed the service from future pension payments to employees who previously served in the military.

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PPA and UK Royal Mail reach deal on size-based pricing

Posted by | Nov 23, 2004 | |

Royal Mail chief executive Adam Crozier has announced an agreement between Royal Mail and the PPA on size-based pricing. Speaking at the PPA’s CEO Conference, Crozier said that the two organisations had reached an agreement on the last outstanding issue that had divided the pair. This concerned the tolerance threshold of the surface of a mailing piece of 10mm thickness or above, where if the threshold was exceeded the item would be classed as a packet rather than a large letter, resulting in a substantial increase in costs. The PPA has succeeded in convincing the Royal Mail to increase this threshold from 4mm to 5mm.

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Winestock to succeed Darden in directing UPS’s US operations

Posted by | Nov 22, 2004 | |

UPS today announced changes in its top management, including the upcoming retirement of the executive responsible for all package operations in the United States. Cal Darden, for the past seven years the senior vice president of US operations and a member of the UPS Board of Directors since 2001, will retire in early 2005 after a 33-year career with UPS. UPS Chairman and CEO Mike Eskew announced Darden would be succeeded by Jim Winestock, currently the manager of UPS’s North Central Region. That region includes six states in America’s heartland with 244 facilities and more than 51,000 employees. In succeeding Darden, Winestock will join the UPS Management Committee, which directs the day-to-day management of the company.

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Blue Dart to sell stake in aviation arm to enable takeover by DHL

Posted by | Nov 22, 2004 | |

Courier company Blue Dart Express has decided to divest its stake in its wholly-owned subsidiary Blue Dart Aviation Ltd in order to facilitate the acquistion of the parent company by global logistics major DHL Express. The company said in a notice issued to BSE: “The board of Blue Dart Express Ltd has approved the divestment/sale of equity shares of Blue Dart Aviation Ltd, being its wholly-owned subsidiary company up to 100percent of the equity share capital.” Under the foreign direct investment (FDI) guidelines for the aviation sector, the foreign holding in airlines has been capped at 49percent. DHL, which has inked a deal to buy a 68.2percent stake in the company for Rs 566 crore and announced an open offer for another 20percent would have exceeded this cap by virtue of its shareholding in the parent company.

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DHL dispatches its message to USA

Posted by | Nov 22, 2004 | |

DHL has hopes that red and yellow will be as popular a color combination for the holidays as red and green.

The colors for the global shipping giant are part of the new look adopted after its USD1.1 billion acquisition of Airborne last year (the two previously used white and different shades of red).

The new look popped up virtually overnight this summer on 426 warehouses, 2,841 retail store locations, 15,338 drop boxes, 17,000 uniformed personnel, 18,000 vehicles and 275 million pieces of packaging.

“We said we have to paint everything yellow as quickly as we can,” says Dick Metzler, executive vice president marketing of DHL Americas. “We really did fast-track this. It was almost a military operation.”

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