UPS to cut 12,000 jobs 5 months after reaching union deal as revenue outlook for year disappoints
UPS released a revenue outlook for this year that sent its shares down sharply and announced they would cut 12,000 jobs.
The company also hinted that its Coyote truck load brokerage business may be put up for sale.
Last year union members at UPS voted to approve a tentative contract agreement, putting a final seal on contentious labor negotiations that threatened to disrupt package deliveries for millions of businesses and households nationwide.
On a conference call Tuesday morning, CEO Carol Tome said that by reducing the company’s headcount UPS will realize $1 billion in cost savings.
UPS also said it will increase its quarterly dividend by 1 cent.
Teamsters General Local 346 represents UPS workers in the the Northland.
Zak Radzak, the Secretary-Treasurer with Local 346 provided WDIO with following statement:
The talk of UPS laying off employees is another way of corporate America taking advantage of the blue-collar taxpayer.
UPS pays their employees a fair day’s work for a fair day’s pay, and they have no public subsidies like the USPS does. Regardless of Amazon making trillions of dollars, they continue to divert their volume to the tax subsidized USPS over the privately owned UPS.
This in no way has to do with last year’s negotiations between the Teamsters and UPS. This is purely Amazon taking advantage of the USPS and the taxpayer.
You wonder where your letter is? It is in a UPSP warehouse because Amazon has priority over your letter that your taxes paid to send. Now Jeff Bezos is filling up his yacht on the taxpayer’s dime.
Amazon will not be good for the city of Duluth. Time will tell if our members will be affected in Northern MN. UPS members have been negatively affected on the West side of the state due the Amazon warehouse in Fargo being built a couple years back.