UPS offers contract proposals
Negotiations between the United Parcel Service and the Teamsters entered a new stage Wednesday when the company made its initial contract proposals on wages, and pension and health benefits.
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DMA Accuses UPS of Holding Up Postal Reform
The Direct Marketing Association criticized United Parcel Service yesterday, saying UPS was trying to thwart postal reform.
“UPS appears not to have the best interest of its customers at heart,” said H. Robert Wientzen, president/CEO of the DMA. “It seems clear that they seek to ensure the further decline of the postal service.”
It has been widely reported, the DMA said last week, that UPS is using its lobbying muscle to deny a floor vote to a House of Representatives postal reform draft bill.
Though the DMA has offered mixed reviews of the draft, Wientzen said changes in the system are needed for the U.S. Postal Service to compete. He also said that a healthy postal service would actually help UPS.
PayPal Integrates UPS Shipping into its Online Payment Process
UPS has teamed with Internet payment service PayPal to completely integrate the online payment process with digital shipping tools. “PayPal Shipping With UPS” allows shipping functions to be completed by buyer or seller within PayPal’s Web site. The result is a fulfillment process that is more accurate and efficient for both buyers and sellers.
Read MoreIt's time to stamp out U.S. postal monopoly
The price of a first-class stamp will rise to 37 cents on June 30, on top of increases in January 1999 and January 2001. Consumers will pay billions in added postage. Yet even with the $675 million Congress approved to offset the cost of the terrorist attacks, the U.S. Postal Service will continue to lose money.
It does not have to work like this. Whereas our postal service remains a government-owned monopoly, other countries have addressed similar concerns through privatization and limitations on, or elimination of, their postal monopolies. Sweden, Finland, New Zealand and, most recently, the United Kingdom abolished their postal monopolies. Since 1997, all 15 European Union countries have observed limits on their postal monopolies.
Read MoreAir express sector lagging
Air express and heavy freight carriers have yet to show any sustainable signs of a recovery, according to one Wall Street report.
Air volumes for United Parcel Service were down approximately 5% in May, compared with the same month in 2001, according to preliminary data from the Morgan Stanley Air Express Demand Index.
While some of that decline may reflect traffic diversions due to uncertainty over United Parcel Service’s prospects for reaching a settlement with the Teamsters before the current contract expires on July 31, Jim Valentine, a Morgan Stanley analyst, said anecdotal evidence suggests industry-wide volumes weren’t much better in May and continue to lag into the month of June.
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