Tag: UPS

Lawsuit against UPS certified as class-action

Posted by | Oct 19, 2007 | |

The suit was brought by former Mail Boxes Etc. franchisees who claim that UPS misled them into believing that the UPS Store model would be more profitable.

Atlanta-based UPS acquired Mail Boxes Etc. in 2001 for about USD 192 million, and the majority of Mail Boxes stores changed their names to The UPS Store, while the UPS subsidiary that oversees the stores has retained the Mail Boxes Etc. name. It is based in San Diego.

All new U.S. franchisees after 2003 were branded The UPS Store.

The former Mail Boxes Etc. franchisees formed a group called the Platinum Shield Association in 2003 to pursue litigation in opposition to the UPS takeover.

Their suit, which was filed in April 2003, now has been certified as class-action by a California appeals court, according to a news release from the Platinum Shield Association.

The appeals court ruled that the Superior Court of California in Los Angeles was wrong in denying a motion to certify a class action in the case.

The plaintiffs are represented by Howard Spanier, a Malibu franchisee who is president of the association.

The suit seeks rescission of the conversion to the UPS store model and unspecified monetary damages, the release said.

Officials with UPS could not immediately be reached for comment.

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Teamsters Eye DHL

Posted by | Oct 18, 2007 | |

With the UPS tentative parcel workers agreement in hand, the Teamsters union is moving onto new ground in the package field.

The union’s national negotiating committee met this month with representatives from DHL to start the “historic task of negotiating a new DHL National Master Agreement,” the Teamsters leadership told its membership last week.

General President Jim Hoffa appointed the national committee, which includes representatives of Teamsters locals from around the country who represent members in every aspect of the DHL Express business. DHL had been covered under the trucking industry National Master Freight Agreement but now is working toward a separate contract.

“While we cannot yet reveal information about specific proposals and discussions, your committee is encouraged by the tone of these talks and DHL’s willingness to negotiate within the framework provided by Articles 1-39 of the National Master Freight Agreement (NMFA),” the Teamsters leaders’ message said.

The union plans to use current contract provisions to “quickly move through the process of negotiating the ‘common clauses’ and begin work on the operational supplements pick-up and delivery, clerical, gateway and hub, as well as allowing each local’s representatives to begin bargaining local riders.”

The new agreement would cover all local unions covered under the NMFA and several locals that previously negotiated stand-alone ‘white paper agreements,’ the message said.

The national bargaining committee is scheduled to negotiate with DHL through the end of October.

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Chief Executive of UPS to retire

Posted by | Oct 15, 2007 | |

United Parcel Service, the world’s largest shipping carrier, said Monday that its Chief Executive, Michael L. Eskew, would retire at the end of the year after six years at the helm and more than three decades with the company.

Scott Davis, Chief Financial Officer, will succeed Mr. Eskew, the company said.

The move was not a surprise, although Mr. Eskew, 58, had not said previously when he would step down.

Mr. Eskew assumed the role of chairman and chief executive on Jan. 1, 2002. Mr. Davis, 55, joined U.P.S. in 1986.
The company also announced several other changes in senior leadership. Replacing Davis as the company’s CFO will be Kurt Kuehn, who is currently Senior Vice President of Global Sales and Marketing and a member of the UPS Management Committee. Replacing Kuehn will be Alan Gershenhorn, who is currently president of UPS International and also serves on the UPS Management Committee. Dan Brutto, who is currently the President of Global Freight forwarding for UPS, is being promoted to the position of president of UPS International and will also join the company’s Management Committee.

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Deutsche Post CEO Zumwinkel Confirms 2007 Ebit Guidance

Posted by | Oct 15, 2007 | |

German mail and logistics company Deutsche Post AG at the weekend confirmed its 2007 guidance for earnings before interest and taxes, or Ebit, and despite the uncertain U.S. economy, still sees an increase possible this year.
Chief Executive Klaus Zumwinkel, who was visiting Moscow at the weekend, said he can confirm the outlook now the third quarter has ended; Ebit for 2007 is planned to reach EUR3.6 billion from EUR3.5 billion a year earlier.
Zumwinkel reiterated that it is possible the company will increase its guidance. This was mentioned earlier in the year after the Bonn-based, DAX company delivered its half-year results.
Deutsche Post’s unit Express, like its peers United Parcel Services Inc. (UPS) and FedEX Corp. (FDX) faces a weak U.S. market, said the CEO.
The CEO also confirmed this year’s guidance for the company’s business segments. Express will reach an Ebit of at least EUR400 million, while logistics could reach operating profit of around EUR900 million.
The medium-term goal for the business in the Americas has not been lowered, and Deutsche Post still plans to reach break-even by the end of 2009 in the Americas, he said.
In 2003, Deutsche Post acquired U.S. Express postal service Airborne. After this takeover, the company incurred losses that are valued in the three-digit million euro range. The company said it would break-even on two occasions, but is still to do so.
The CEO has replied to criticism surrounding the losses by saying it is inevitable for a conglomerate with international customers, like Deutsche Post, to do business in the U.S.

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State reviews options to ease delays at Anchorage Airport

Posted by | Oct 14, 2007 | |

Traffic at the Ted Stevens Anchorage International Airport is steadily increasing, and airport planners believe that the growth could soon lead to take-off and landing delays, more circling for landing slots and longer taxi times on the ground.

By 2012, estimates show there will be a 60-minute wait for some aircraft accessing the airport during weekday afternoons, according to Anchorage airport development director Rich Wilson.

Those projections have led airport planners to consider options for infrastructure growth to head off the problem. Ideas include building a second north/south runway or altering existing runway patterns.

Wilson gave a presentation at the Anchorage Air Cargo Association’s monthly meeting on Sept. 25.

The cost of building the North South runway in 1979 was USD 32 million. Wilson didn’t give a cost to build an additional runway. Such work generally would run into the tens of millions of dollars.

Building a new north/south runway is one of several options airport planners are considering, Wilson said.

Other options included making adjustments to the existing east/west runways, as well as developing an airpark near one of the runways.

Some could argue that cargo carriers UPS and FedEx would be the biggest beneficiaries of spending millions of dollars to build a new runway.

FedEx and UPS together generate USD 15.4 million a year in landing fees.

FedEx is the second highest revenue generator at USD 9.2 million, behind Alaska Airlines passenger and cargo services, at USD10.5 million. China Air ranks third, making the airport USD6.9 million, while UPS ranks in the fourth position at USD 6.05 million.

FedEx, UPS and Northwest Cargo all value Anchorage International as their premier gateway hubs to Asia.

FedEx currently has 20 flights from Anchorage daily, according to McCluskey. UPS has more.

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