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A comment on UPS driver pay and benefits deal in US to be worth $170k a year, firm says.

Re:UPS driver pay and benefits deal in US to be worth $170k ... by valianteffort on Wednesday August 09, 2023 @09:39AM (#37062485)
Just pay them a million a year each, why should they be anything short of rich?

Even if the company could afford to pay the drivers $170k/yr without increasing shipping costs, they're still going to increase shipping costs. So this just gets passed on to the consumer rather than the company, much like tipping. And at a time when discretionary spending is down tremendous, this just means more people will get laid off. I will eat my hat if there are no mass layoffs in the next year.

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Re:UPS driver pay and benefits deal in US to be worth $170k ... by jewayne on Wednesday August 09, 2023 @09:48AM (#37062584)
It depends on what you mean by mass layoffs. In post-Jack Welch America, there is ALWAYS some company doing massive RIFs. Often when they're already profitable.

I think your hat and your stomach are safe.

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Re:UPS driver pay and benefits deal in US to be worth $170k ... by sarchertech on Wednesday August 09, 2023 @09:56AM (#37062697)
UPS makes about $75 Billion per year in profit. This is a $25k increase after a few years of record inflation. There are 300k teamsters at UPS (including other jobs like package handler). If 1/3 of those employees are drivers, we're talking a 3% reduction in profits. They can afford it. (also worth nothing this $170k is also including all benefits).

>this just means more people will get laid off.

The threat of a strike makes this much less likely.

Anecdotally UPS drivers are much, much better than Fedex and Amazon. They don't toss my packages or leave them sitting in the rain etc...

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Re:UPS driver pay and benefits deal in US to be worth $170k ... by BasedInfra on Wednesday August 09, 2023 @10:00AM (#37062778)
UPS just over 100 billion revenue and 11.55 billion NET profit.

https://en.m.wikipedia.org/wiki/United_Parcel_Service

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Re:UPS driver pay and benefits deal in US to be worth $170k ... by bbarnett on Wednesday August 09, 2023 @10:13AM (#37062942)
Strange how many in this thread don't get revenue vs profit.
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Re:UPS driver pay and benefits deal in US to be worth $170k ... by jhgfjhgfjhfgjhg on Wednesday August 09, 2023 @09:59AM (#37062759)
You are wrong. UPS does not make anything close to $75 B per year in profit.
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Re:UPS driver pay and benefits deal in US to be worth $170k ... by Clubber on Wednesday August 09, 2023 @10:07AM (#37062866)
Looks like they made $100B in revenue and $74B profit in 2022.

https://www.macrotrends.net/stocks/charts/UPS/ups/revenue

  UPS annual revenue for 2022 was $100.338B, a 3.14% increase from 2021.
  UPS annual revenue for 2021 was $97.287B, a 14.96% increase from 2020.
  UPS annual revenue for 2020 was $84.628B, a 14.22% increase from 2019.

  UPS annual gross profit for 2022 was $74.152B, a 3.08% increase from 2021.
  UPS annual gross profit for 2021 was $71.939B, a 12.32% increase from 2020.
  UPS annual gross profit for 2020 was $64.05B, a 13.61% increase from 2019.
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Re:UPS driver pay and benefits deal in US to be worth $170k ... by stefanpl on Wednesday August 09, 2023 @10:30AM (#37063252)
You need to look at net profit not gross which is much smaller. The net profit margin 10%.
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Re:UPS driver pay and benefits deal in US to be worth $170k ... by orwin on Wednesday August 09, 2023 @10:58AM (#37063703)
Why? Aren't salaries paid before obligations and taxes?
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Re:UPS driver pay and benefits deal in US to be worth $170k ... by axus on Wednesday August 09, 2023 @09:57AM (#37062727)
According to the article: UPS "now expects its adjusted operating margin this year to be 11.8%, down from 12.8% expected in May. The drop also reflects a fall in shipments as the economy weakens."

Their shipping prices are determined by what the market will pay and their competitors prices. Employee compensation affects UPS profit/stock price.

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