Always a Factor in Contract Negotiations


















UPS 2nd Quarter Profits: $1.12 Billion


Headed into contract negotiations, UPS continues to make big profits.


UPS announced it made $1.12 billion in profits after taxes for the 2nd Quarter on $13.35 billion in revenue. Not a bad haul for three months.


Operating profit for U.S. domestic package jumped more than 12 percent. Package volume is up 3.5 percent. Not only are we delivering more packages; the company is making more money on every package we deliver. Average revenue per package increased 0.6 percent.


Click here to read our detailed coverage at www.makeUPSdeliver.org.

FYI




Survey: One in 11 employers plan to drop health coverage

One in 11 employers is planning to drop health insurance coverage for workers over the next three years because of the high expense, according to a report from consulting firm Deloitte.
     While Deloitte’s 2012 survey of employers — conducted before the Supreme Court’s ruling in June to uphold health reform — showed that 9% of them planned to stop offering health care coverage, 81% of companies polled said they would continue providing the benefit as a means to attract and retain employees.
     That’s good news for more than 160 million people — more than half the U.S. population — who currently get health insurance directly through their employers.
     Another 10% of employers polled in the Deloitte survey indicated that they hadn’t yet made up their mind.
     Among those employers who indicated that they wouldn’t dump health coverage, most plan to make workers pick up more of the cost associated with it through higher premiums, co-pays and deductibles.
     The survey also showed that smaller businesses — those with fewer than 50 employers — view health insurance exchanges more favorably than bigger companies.
     Under health reform, states are mandated to set up health insurance exchanges — online marketplaces where consumers can buy subsidized health plans — by 2014.
     These exchanges are geared toward making health insurance affordable to underinsured and uninsured individuals.
     By 2014, companies with 50 or more full-time employees must start providing health insurance or face penalties.
     For most small businesses, that means a new way to shop for less-expensive health insurance on the exchanges where they can buy plans for their workers.
     Deloitte’s online survey, conducted between February and April, polled 560 randomly selected companies with 50 or more workers that offer health.

Forget the debate over outsourcing.


The Problem Isn’t Outsourcing. It’s that the Prosperity of Big Business Has Become Disconnected from the Well-Being of Most Americans


Wednesday, July 18, 2012

President Obama is slamming Mitt Romney for heading companies that were “pioneers in outsourcing U.S. jobs,” while Romney is accusing Obama of being “the real outsourcer-in-chief.”


These are the dog days of summer and the silly season of presidential campaigns. But can we get real, please?


The American economy has moved way beyond outsourcing abroad or even “in-sourcing.” Most big companies headquartered in America don’t send jobs overseas and don’t bring jobs here from abroad.


That’s because most are no longer really “American” companies. They’ve become global networks that design, make, buy, and sell things wherever around the world it’s most profitable for them to do so.


As an Apple executive told the New York Times, “we don’t have an obligation to solve America’s problems. Our only obligation is making the best product possible.” He might have added “and showing profits big enough to continually increase our share price.”


Forget the debate over outsourcing. The real question is how to make Americans so competitive that all global companies — whether or not headquartered in the United States — will create good jobs in America.


Apple employs 43,000 people in the United States but contracts with over 700,000 workers overseas. It assembles iPhones in China both because wages are low there and because Apple’s Chinese contractors can quickly mobilize workers from company dorms at almost any hour of the day or night.


But low wages aren’t the major force driving Apple or any other American-based corporate network abroad. The components Apple’s Chinese contractors assemble come from many places around the world with wages as high if not higher than in the United States.


More than a third of what you pay for an iPhone ends up in Japan, because that’s where some of its most advanced components are made. Seventeen percent goes to Germany, whose precision manufacturers pay wages higher than those paid to American manufacturing workers, on average, because German workers are more highly skilled. Thirteen percent comes from South Korea, whose median wage isn’t far from our own.


Workers in the United States get only about 6 percent of what you pay for an iPhone. It goes to American designers, lawyers, and financiers, as well as Apple’s top executives.


American-based companies are also doing more of their research and development abroad. The share of R&D spending going to the foreign subsidiaries of American-based companies rose from 9 percent in 1989 to almost 16 percent in 2009, according to the National Science Foundation.


What’s going on? Put simply, America isn’t educating enough of our people well enough to get American-based companies to do more of their high-value added work here.


Our K-12 school system isn’t nearly up to what it should be. American students continue to do poorly in math and science relative to students in other advanced countries. Japan, Germany, South Korea, Canada, Australia, Ireland, Sweden, and France all top us.


American universities continue to rank high but many are being starved of government funds and are having trouble keeping up. More and more young Americans and their families can’t afford a college education. China, by contrast, is investing like mad in world-class universities and research centers.


Transportation and communication systems abroad are also becoming better and more reliable. In case you hadn’t noticed, American roads are congested, our bridges are in disrepair, and our ports are becoming outmoded.


So forget the debate over outsourcing. The way we get good jobs back is with a national strategy to make Americans more competitive — retooling our schools, getting more of our young people through college or giving them a first-class technical education, remaking our infrastructure, and thereby guaranteeing a large share of Americans add significant value to the global economy.


But big American-based companies aren’t pushing this agenda, despite their huge clout in Washington. They don’t care about making Americans more competitive. They say they have no obligation to solve America’s problems.


They want lower corporate taxes, lower taxes for their executives, fewer regulations, and less public spending. And to achieve these goals they maintain legions of lobbyists and are pouring boatloads of money into political campaigns. The Supreme Court even says they’re “people” under the First Amendment, and can contribute as much as they want to political campaigns – even in secret.


The core problem isn’t outsourcing. It’s that the prosperity of America’s big businesses – which are really global networks that happen to be headquartered here – has become disconnected from the well-being of most Americans.


Mitt Romney’s Bain Capital is no different from any other global corporation — which is exactly why Romney’s so-called “business experience” is irrelevant to the real problems facing most Americans.


Without a government that’s focused on more and better jobs, we’re left with global corporations that don’t give a damn.

Robert Reich

This UPS Driver Saved A Wandering Alzheimer’s Patient




What can brown do for you? Well, track down and monitor a wandering Alzheimer’s patient, for starters.

Raleigh police were looking for an elderly man with Alzheimer’s, but it was a delivery man who ultimately found him. We talked with the UPS driver who found the old gentleman and kept him company until police showed up to take him home.


Lifelong Raleigh, N.C. resident and 25-year UPS veteran Kenneth Donleycott was driving his route a few weeks ago when a police officer pulled up and asked him if he’d seen an elderly man walking a white dog. The man had been reported missing from his home.


In a smooth North Carolina twang, Donleycott — who, in addition to driving a delivery truck, also serves as the co-chair of the safety committee at UPS’s Raleigh office — related his story.


“I hadn’t seen him, but on my way out, I saw a lot of police canvassing the neighborhood. Not too much later, I saw an older guy walking his dog and figured it was him.The first thing I noticed that wasn’t right was that he had a bunch of rocks stuffed into both of his pockets. I asked him where he was going and he pointed in a direction that was different than the direction he was going.So I asked him what he did for a living and he said he was a retired marine. I told him my father-in-law was a retired marine and he started talking. What he said was kind of garbled and he seemed confused. So I called 911.”


Donleycott said that the police arrived within 15 minutes of his call, and that the man, who they said has Alzheimer’s and a propensity toward heat stroke, had wandered pretty far from home.

“It was really hot outside. The dog looked pretty worn out, but the man looked fine to me. He was in good shape and dressed real sharp — I’d expected someone much older, but he looked to be in his early 60s. He’d covered a lot more ground than even the police thought.”


Raleigh police had considered calling a “silver alert” — the code for a lost elderly person — when Donleycott called in to report that he had found the man. They called Donleycott later in the day to confirm that the man had been reunited with his family.


UPS wasted no time posting Donleycott’s picture and a synopsis of the story on the company’s Facebook page, quickly racking up 5,490 comments, 6,616 shares, and 217,680 likes. Most of the comments are positive, but Donleycott said that a few accused UPS of staging a publicity stunt.

“There were too many comments for me to respond to a lot of them, but this was real, not a publicity stunt. It really did happen. But I think credit should go to the officer who told me [the man was lost]. If he hadn’t told me, I would have driven right past the guy.”

JALOPNIK



Bring Jobs Home Act fails. Remember in November.

These are the U.S. Senators who voted today against a bill that would eliminate tax breaks for sending U.S. jobs overseas:

Lamar Alexander (R-TN), Kelly Ayotte (R-NH), John Barrasso (R-WY), Roy Blunt (R-MO), John Boozman (R-AR), Richard Burr (R-NC), Saxby Chambliss (R-GA), Dan Coats (R-IN), Tom Coburn (R-OK), Thad Cochran (R-MS), Bob Corker (R-TN), John Cornyn (R-TX), Mike Crapo (R-ID), Jim DeMint (R-SC), Mike Enzi (R-WY), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Orrin Hatch (R-UT), John Hoeven (R-ND), Kay Bailey Hutchison (R-TX), James Inhofe (R-OK), Johnny Isakson (R-GA), Mike Johanns (R-NE), Ron Johnson (R-WI), John Kyl (R-AZ), Mike Lee (R-UT), Richard Lugar (R-IN), John McCain (R-AZ), Mitch McConnell (R-KY), Jerry Moran (R-KS), Lisa Murkowski (R-AK), Rand Paul (R-KY), Rob Portman (R-OH), James Risch (R-ID), Pat Roberts (R-KS), Marco Rubio (R-FL), Jeff Sessions (R-AL), Richard Shelby (R-AL), John Thune (R-SD), Pat Toomey (R-PA), David Vitter (R-LA), Roger Wicker (R-MS).

The bill failed in the Senate. Taxpayers will continue to subsidize corporations that move American jobs to China.

Remember in November.


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