Year: 2005

UPS pilots may vote to strike

The union representing 2,500 pilots at United Parcel Service Inc. has called for a vote to authorize a strike that could severely cripple the nation’s largest carrier. UPS handles an average 13.6 million packages a day. According to the Wall Street Journal, results of the strike vote are expected in mid-May. UPS pilots have been without a contract for two years. Even if a strike is authorized, it would be unlikely in the near term. For one thing, eight months ago, the union invited federal mediation. It can’t legally strike as long as mediation continues. For another, President Bush could step in to block a strike temporarily.

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FedEx Freight continues strategic expansion and growth throughout US

FedEx Freight, a subsidiary of FedEx Corp. continues its aggressive nationwide expansion by opening four new service centers and expanding a fifth facility to meet growing customer demand throughout the United States. “Increasing capacity remains an important business goal as FedEx Freight continues its long-term growth strategy focusing on next-day and second-day regional markets,” said Douglas G. Duncan, president and CEO of FedEx Freight. “Our efforts to build new facilities and upgrade current centers underscore our commitment to exceeding customers’ service and reliability expectations in these growing markets.” Newly-constructed and recently-opened facilities include state-of-the-art service centers in Des Plaines, Ill., Salem, Ore., Texarkana, Ark. and Springfield, Mass.

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Foreign firms could buy into Japan’s Privatised Postal Entities

The government has concluded that it will be difficult under World Trade Organisation rules for it to legally regulate foreign ownership in the postal savings bank and postal life insurance company due to be created in April 2007 as a result of privatising Japan Post, government sources said.

WTO rules stipulate that free cross-border investment activities should be guaranteed, in principle, for service companies and other businesses.

The rules, however, allow national governments to protect their interests by legally regulating the percentage of foreign holdings in certain types of businesses, such as airlines and broadcasting firms, as well as other operations directly run by governments.

Japan and other industrialised nations do not include service firms, including financial institutions, among the businesses that should be protected against foreign capital.

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French Chronopost selects technology of Inovia

French logistics and mail delivery solutions provider Chronopost International has selected the technology of local optimisation software solutions developer Inovia to optimise its flow control between its hubs and agencies across France, it was reported on March 25, 2005.

Chronopost decided to implement the Optimal Flux transportation plan optimisation solution of Inovia in order to achieve its objectives.

Set up in 1997, Inovia (www.inovia.com) is jointly managed by Olivier Serfaty and Frederic Leroy. Among its clients are companies such as Carrefour Carburants, L’Oreal, Transports Guisnel, Hutchinson and Mory Group.

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Poste Italiane renews labour agreement

Italian state-owned postal services company Poste Italiane has renewed the collective labour agreement of its employees for the period 2005 to 2006, it was reported on March 25, 2005.

The renewal of the contract envisages an increase of the salary with an average 80 euro (USD103. 28). The salary increase will be carried out in three tranches. The first tranche will be of 29 euro, payable in May 2005, while the second and third will be of 22 euro (USD28. 40) and 29 euro (USD37. 44), payable in March and October 2006, respectively.

The contract also includes a one-time bonus of 150 euro (USD193. 65).

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An Post to outsource cash transit service

An Post is proposing to outsource its countrywide cash transit service.

The postal service confirmed last week that it had received over 10 expressions of interest from private companies to tender for the provision of cash-in-transit services for selected post offices throughout Ireland. Most of this work is currently done by An Post delivery teams.

A spokesman for An Post said that only two of its cash delivery teams had been held up in the last two years. Private security teams have been held up at the rate of one a week over the same period.

We have by far the biggest network of cash outlets in the country, and the cash transit service involved is also one of the biggest in the country, said the spokesman. We are the main provider of social welfare deliveries, and we are the largest processing agent for bills. We’re a substantial provider of cash.

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DHL to spend USD160 million to automate package-sorting operations

In a bid to match US package-delivery rivals in efficiency, DHL Worldwide Express Inc. will invest USD160 million this year in technology that automates the package-sorting process.

The delivery and logistics company, owned by German mail carrier Deutsche Post AG, said it will upgrade automation by 2006 at its facilities in Wilmington, Ohio; Allentown, Pa.; and Riverside, Calif. Some jobs will be cut gradually, the company said.

The investment is part of DHL’s USD1.2 billion U.S. expansion and the company’s bid to become an alternative to United Parcel Service Inc. and FedEx Corp.

So far, DHL says it serves just a sliver of the U.S. market, around 6.8 percent.

“This is just another confirmation of the fact that DHL is a key player in the United States,” said Fred Beljaars, executive vice president of operations for DHL Americas.

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Magyar Posta – a service to be proud of?

Despite anecdotal evidence to the contrary, Magyar Posta claims it provides a good service, one that brought in a pre-tax profit of Ft5 billion (USD26.73 million) in 2004. Companies contacted by The Budapest Sun, however, tell a different story: one of sending invites out ever earlier or assuming they will go astray. Tamás Tomecskó, spokesman for Magyar Posta Rt, told The Budapest Sun that very few letters “go astray” and are delayed. “Last year we had some problems with our new mail processing and distribution in Budaörs, but there have been very few problems since then,” he said.

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