Tag: USA

FedEx Ground accused of illegal treatment of unionizing workers

The National Labor Relations Board has scheduled a hearing on accusations that FedEx Ground violated federal labor laws.

The hearing before an administrative law judge in Philadelphia will hear accusations that the company discouraged drivers from forming a union.

The company is also accused of discriminating against drivers who filed charges or testified against them.

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Growth and change drive the global 3PL market

Whether by acquisition, joint venture or alliance, consolidation in the third-party logistics (3PL) segment has been an almost daily occurrence over the last couple of years. This is one area where the global nature of logistics is clearly demonstrated.

Recent news that the European Court of Justice ruled the Dutch government’s “golden share” in TNT was illegal could facilitate two more acquisitions this year. TNT had announced its intent to exit the logistics business and concentrate on express and mail where margins are stronger. But, no word has surfaced on a potential buyer. German investor Cornelius Geber had expressed an interest in TNT, but his focus was on mail and express, not logistics.

The court ruling on the golden share defense could make TNT itself more attractive as a takeover target. Geber has not yet made any noises about reviving his interest in the company, but industry watchers note FedEx or UPS could be among prospective bidders for the express business. In fact, both have been jockeying for better global positions through expansions in Asia and Europe.

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17th Annual State of Logistics Report finds that rising prices and interest rates will soon push logistics costs above 10 percent of GDP.

Pressure on logistics costs has been building for awhile, and the results are evident: After declining for most of the last seven years, logistics costs as a percentage of the nation’s gross domestic product (GDP) are pushing upward.
For the past 17 years, the State of Logistics Report has given logistics and supply chain professionals insight into the economic forces that affect logistics costs. This year’s report, written by economist Rosalyn A. Wilson under the auspices of the Council of Supply Chain Management Professionals (CSCMP), places logistics expenditures at 9.5 percent of GDP. That’s a sharp departure from the three previous years, when those costs ranged between 8.6 and 8.8 percent of GDP (see Figure 1). And it’s perilously close to the 10 percent mark, a long-accepted demarcation separating reasonable and exorbitant cost levels.

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Proposed USPS rate increases may influence express carriers' pricing

Earlier this year, the United States Postal Service (USPS) Board of Governors requested that the Postal Rate Commission (PRC) sign off on proposed increases for almost all of its domestic postage rates and fees, which would go into effect no sooner than May 2007.

The cumulative average of the proposed increases is 8.5 percent. Rates for priority mail and express mail would rise 13.8 percent and 12.5 percent, respectively. Parcel post rates would increase 13.7 percent.

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UPS, US pilots union reach contract deal

UPS Inc. and its pilots union have reached a tentative agreement on a new contract, which, if approved, would end a stalemate that dragged on for more than three years and included the pilots’ threat of a strike, the union said Friday.

The union said in a statement that the agreement would run through 2011 and must be ratified by the nearly 2,500 pilots at the Atlanta-based company.

Terms of the new contract include an hourly pay raise of 17.7 percent for top captains with at least 12 years of service and higher health care premiums paid by all pilots, according to a person who has seen the agreement but spoke on condition of anonymity because neither side has been authorized to release details.

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