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FedEx sent a memo to its delivery force encouraging security awareness in the event of a strike. Unlike unionized UPS, FedEx uses a network of small businesses that contract out its delivery routes and make package deliveries. A FedEx spokesperson told Insider that alerting delivery contractors of potential disruptions is normal practice. A Teamsters spokesperson dismissed FedEx's memo as "scare tactics to capitalize on a possible work stoppage at UPS." Who gains from a UPS strike?
Persons: Glenn Gooding, who's Organizations: UPS, Teamsters, FedEx, International Brotherhood, iDrive Logistics, , United States Postal Service
UPS is piloting making less frequent deliveries in rural areas, the company confirmed to Insider. UPS is experimenting with delivering on fewer days per week in very rural areas, the company confirmed to Insider. The pilot will cover roughly 1% of zip codes, a UPS spokesperson said, noting that most UPS customers won't be affected. UPS has been adding surcharges on top of more and more rural packages in recent years to offset these costs. But that work started with rural packages where having separate facilities and staff makes even less financial sense.
Revenue in the first quarter was down 6% and package volume was down by 5.4%. Both UPS and FedEx are downshifting and planning futures with smaller, more efficient networks. But beyond initial cuts, UPS and FedEx are leaning into technology upgrades to shrink strategically and emerge from the doldrums more efficient. The company has already begun the combination of Ground and Express, which will involve closing Express facilities and moving those operations into nearby Ground buildings. These networks have long acted as a moat around UPS and FedEx — making entering the delivery space so expensive it was rarely attempted.
UPS CEO Carol Tomé successfully led UPS through the pandemic. Then, he was a UPS hub manager in the Seattle area — almost halfway through his two decades with the company. But it's headed into rough terrain again this year as the contract with its union drivers expires this summer, threatening a strike that could disrupt millions of deliveries. O'Brien wants to use the UPS negotiations as a sales pitch to Amazon workers — demonstrating what a union can get them. All the while, they've demonstrated record profits," Gooding said of UPS.
UPS plants fake packages to make sure drivers and staff are following the rules. Current workers and former managers told Insider the practice is known as "SALTing" inside UPS. Two UPS drivers said they've seen an uptick since the end of the holiday season. Glenn Gooding, a manager for most of his 20+ years at UPS, told Insider he probably "SALTed" at least 10,000 times. Other drivers said the most common use was planting fake packages in order to make sure packages that don't scan are returned to the delivery station.
UPS CEO Carol Tomé speaks before a group at a UPS faciltity in Pleasantdale, Georgia. Employees hold roughly 70% of UPS stock, so they benefit from a rising share price. One gesture she made on this front was allowing UPS drivers to have beards, natural hairstyles like Afros and braids, and visible tattoos. UPS CEO Carol Tomé sits in a UPS delivery van on a package route ride-along. While Tomé has made some UPS employees anxious, she's pleased Wall Street: UPS' stock has nearly doubled since the start of her tenure.
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