Governor Hassan Announcement: New UPS Logistics Center in Londonderry

Maggie Hassan

CONCORD – Following the announcement that UPS will build a 600,000-square-foot logistics center on Pettengill Road in Londonderry to service shipments for Pratt & Whitney, Governor Maggie Hassan issued the following statement:

“The exciting announcement that UPS and Pratt & Whitney will expand their partnership to open a new logistics center in Londonderry reinforces that New Hampshire’s high quality of life, tax-friendly environment, highly skilled workforce and responsive state government make the Granite State as attractive a state for business as any in the country.

“The Pettengill Road area in Londonderry continues to represent one of the most promising economic development opportunities in New Hampshire, attracting this new facility just one week after announcing a new 500-job FedEx Ground Center. The new UPS logistics center will help boost our economy, creating up to 250 jobs, and I thank UPS and Pratt & Whitney for working with the Town of Londonderry, Commissioner Rose and the Department of Resources and Economic Development, and other relevant state agencies to make this investment in our state and its people.”

Next Time Use The US Postal Service

Letter Carrier US Postal Service

Letter Carrier US Postal Service It has been widely reported that many people did not get their Christmas presents delivered on time by UPS and FedEx.  How did this happen?

“The volume of air packages in the UPS system did exceed capacity as demand was much greater than our forecast,” a UPS spokeswoman said.

Before all of my Teamster brothers and sister come down on me, let me say that I do not blame any of the drivers or people who process the packages, I am blaming the company for making promises they could not keep.

Both UPS and FedEx are world renowned for their overnight package delivery.  They revolutionized the overnight package delivery with a huge fleet of airplanes and midnight processing in central US locations.  However this did not help them avoid all of these late deliveries.

The blame does not fall solely on UPS or FedEx, much of the blame falls on online retailers who promised delivery by Christmas.

The Wall Street Journal reports:

“During the last shopping weekend before Christmas, Web sales jumped 37% from the year before, according to IBM Digital Analytics.”

Online retailers pushed the limits of what UPS and FedEx could do on a normal day and quickly overwhelmed them during the Christmas rush.

Although weather, Web glitches and late deliveries from manufacturers played a part in late deliveries, the sheer unanticipated volume of holiday buying this year may have been the biggest problem, retail analysts said.”

All of these things created a perfect storm that nobody could recover from.  That is except for the US Postal Service.

The government-run competitor was swamped with parcels just like UPS and FedEx were, with holiday package volume 19 percent higher than the same period late year. But there were no widespread complaints about tardy deliveries by USPS.” (BusinessWeek)

United States Postal Service fleet; U.S.A.The USPS service handled all of the same extra packages as UPS and FedEx and they did it without being late. In fact the USPS delivered over 75,000 packages on Christmas day!

The postal service did it all in spite of reductions in personnel and cuts to funding.  The trumped up claim that the USPS is going bankrupt is just a ploy by lobbyists and government officials like Rep Darrell Issa, to turn the US Postal Service into UPS.

Without the pre-funding obligation the USPS would have made over $600 million dollars last year alone.  While FedEx and UPS did make higher profits, the USPS is not issuing refunds to thousands of costumers for late deliveries.

One of the key money saving ideas that Congress and the Postmaster General tossed out is to end Saturday delivery.  The irony is that during this holiday season the USPS actually delivered seven days a week throughout December.

When it comes to getting your package there when they say it will get there, I will trust the 238-year-old postal service.

Without Pre-Funding Obligations The USPS Would Profit How Much?

United States Postal Service fleet; U.S.A.

United States Postal Service fleet; U.S.A.

The new USPS Financial Report issued Friday further validates the claim that the Postal Service is neither broken nor in crisis. Excluding the pre-funding expense the USPS has turned a $660 million profit delivering mail in fiscal year 2013. Showing again that Senator Carper, Senator Coburn and Congressman Issa are manufacturing a postal financial crisis as an excuse to dismantle it. Standing in their shadows are vultures named FedEx and UPS.

Senator Carper on Friday in an interview with NPR spoke of the need to “right size” the Postal Service. Apparently Mr Carper has not noticed that the Postal Service has eliminated 31% of its jobs in the last 10 years. Going from a career workforce of 729,000 in 2003 to slightly over 500,000 at the present time. While letter mail volume has dropped, it has been made up by a spike in highly profitable parcel delivery that as of this moment is at all time highs. Adding to that the Postal Service now delivers to 10.8 million more delivery points than in 2003. Yet Carper makes the outrageous claim that the Postal Service needs to be “right sized” and has too many workers. Mr Carper just insulted 500,000 postal workers and the intelligence of any informed observers.

NALC President Fred Rolando attempted to enlighten congressional leaders on Friday:

“The congressional priority should be to address the actual source of red ink: the $5.5 billion annual pre-funding albatross that is hampering the Postal Service. This mandate is not only onerous, it is unnecessary, because the Postal Service already has put aside sufficient money to meet the needs of future retirees for decades to come. Few, if any, companies can say the same.”

“The path to profitability is clear: Address the pre-funding fiasco and give the Postal Service the freedom to innovate and grow in the digital era. Do not eliminate Saturday delivery, which would raise costs for small businesses open weekends, and do not force people to traipse around their neighborhood looking for cluster boxes. Such steps would inconvenience the public and would destroy the Postal Service by driving mail—and revenue—out of the system.”

It appears that Senator  Carper and Senator Coburn  are being influenced by FedEx and UPS who would capitalize on a dismantled Postal Service. The facts paint the picture: Since Carper’s reelection nine months ago he has received $30,000 from FedEx and 26,500 from UPS .  His next election is over 5 years away! Why the sudden interest? In January, Carper assumed the powerful chairmanship of the Homeland Security and Government Affairs Committee. He became a powerful man in the Senate regarding Postal Affairs.

The ranking member of that committee is Senator Coburn (R-OK). Coburn infamously introduced an amendment in Postal Bill S1789 last year that created quite a buzz. Amazingly it would “require the Postal Service to dismiss its workers who are retirement eligible in order to cut costs”  It is unknown if Coburn will reintroduce this amendment in S1746.

Colburn introduced with Carper the Postal Reform Act of 2013 (S1746) he has also been the recipient of $25,000 from FedEx this calendar year. Placing FedEx in the top five of his donors. Coburn , it can be argued, owes his political career to ALEC founder the Koch Brothers

FedEx and UPS are members of the American Legislative Exchange Council (ALEC)  and both companies have held the vice-chair position on this insidious anti worker and union busting group. FedEx and UPS have donated enormous money over the past few years to Carper and quite possibly they helped craft the new Postal Reform Act S1746.

In the House of Representatives FedEx has been an enthusiastic supporter of Issa’s draconian HR 2748. In the past a Democratic controlled Senate would be the voice of reason and push back against the extreme right-wing ideologues of the House. That does not seem to be the case at this time as Carper is adding fuel to their witch hunt.

The Postal Service is  governments most popular and efficient agency and its being dismantled for pure ideology and greed. Fed Ex,UPS and other ALEC members will profit immensely by the privatizing of the Postal Service and the destruction of their unions.

 

Why On Earth Is The USPS Paying FEDEX Stockholders Millions In Dividends

USPS Subcontractors

According to an annual report from a Washington DC law firm, FedEx is the top US Postal Service contractor for the tenth consecutive year.

You read that right.  The Postal Service’s biggest competitor, FedEx, is also its largest contractor.  In FY2012, the USPS paid FedEx $1.618 billion – an 8% increase over the previous year.

UPS had an even bigger increase.   In FY2012, the Postal Service paid UPS more than $126 million – a 24% increase from FY2011.  (Of course, UPS previously employed Janna Ryan – the wife of House Budget Committee Chairman Rep. Paul Ryan – as their lobbyist.  And she was reportedly a very effective lobbyist.)

Contracting with the Post Office is Big Business.  The Postal Service is spending almost $12 Billion a year on private contractors – even though the Postal Service is so financially strapped that they’re about to cut delivery service by one day a week.  Does this make any sense at all?  

There has been a lot of talk lately about “privatizing” the Postal Service.  Based on the law firm’s report, it looks like the Post Office is being privatized, one little piece at a time.  Just another example of government creating something of value, only to hand over the profits to someone else.  Just one more example of our government being used to further someone else’s private interests.

How many Postal Service jobs were lost, eliminated or downsized due to all these contracts?

And what percentage of each postage stamp we buy has been converted into private profits?

Let’s look at FedEx.  FedEx had about $43 billion dollars in revenues last year.  Of that, $1.618 came directly from the Postal Service.  That means the Postal Service is responsible for 3-4% of FedEx’s total revenues.

FedEx made quite a profit last year.  Company executives get to decide how much profit is paid out as dividends, and how much is reinvested in new equipment and new hires.  Last year, FedEx paid out a lot in dividends.

Frederick Smith is CEO of FedEx.  According to SEC filings, he owns about 15 million shares of the company.  Last year, FedEx paid out a total of 55 cents per share in dividends.  Do the math… and it looks like Mr. Smith received about $8.5 million in dividends (not counting dividends to his family holding company, his wife, or his retirement fund).

Do the math… and if 3-4% of FedEx business (and profits) are attributable to the Postal Service… that would mean Postal Service contracts account for more than a quarter-million dollars’ worth of Mr. Smith’s 2012 dividend income.

(Wonder how much stock other FedEx employees hold?  Click here.  Then do your own math about how much of their dividend income is attributable to Postal Service contracts.)

$12 Billion in Postal Service outsourcing.  Why?  Why are we continuing to outsource good jobs to private companies who are collecting record profits?  Why are we paying corporations billions of dollars to do exactly what workers at the Postal Service could already do?  The Postal Service continues to shed workers at an alarming rate while FedEx and UPS continue to make more and more money from the Postal Service.

FedEx made over $1.4 million in campaign donations last year.  Is it any wonder there’s so much talk about “privatizing” the Postal Service?

 

Teamsters: On the Ground, Cleaning Up After Sandy

A Storm's Toll Heaped in the Rockaways

Unions are about standing together and taking care of each other – and since Hurricane Sandy took aim at the Eastern Seaboard two weeks ago, that’s exactly what the Teamsters have been doing, 24/7.  You can read about their hard work on their blog.  Here are some of the highlights:

Monday, October 29th: “Department of Sanitation Teamsters battened down New York City before the storm hit, driving convoys of trucks to staging areas around the city and emptying and turning over garbage bins. They continued to collect trash and recycling during the storm today, and they’ll be on 12-hour shifts tomorrow to clean up debris.”

Tuesday, October 30th: “New York City Sanitation Department Teamsters from Local 831 are working long hours today removing trees from roadways, breaking apart limbs and cleaning streets as Hurricane Sandy moves on.  The monster storm crippled the city, flooding the subways and the Wall Street District and downing power lines. Hundreds of thousands of people have no power.”

Area residents started saying “thanks” on the Local’s Facebook page: “God bless all the people who are working to make our lives better after such a horrible storm.”

Wednesday, October 31st: “Parts of the Northeast are returning to normal today as Teamsters clear trees, repair rail tracks, clean up after flood damage, ship supplies and deliver those all-important iPhones.”

Fires were still burning; entire neighborhoods were buried under sand and seawater; millions were without power; and then 29 inches of snow fell.  “None of that stopped our brothers and sisters from getting ‘er done at departments of public works and sanitation, the railroads and UPS.”

Sunday, November 4th:  The Teamsters’ blog asks members across the nation for help.

“You can make a donation to the Red Cross by texting ‘redcross’ to 90999 and you will make a $10 donation.   Tom Petillo, president of Teamsters Local 125 in Trenton, NJ, is working with the IBT, Joint Council 73 and other New Jersey unions to coordinate rescue and relief efforts. He asks members to donate food, water and clothing.”

From a Teamsters member in Rockaway, Queens: “Bring shovels, gloves and give us a hand.  Don’t matter which block, just walk up and help.”

Monday, November 5th: “Teamsters sanitation and DPW members are working long, exhausting hours to get the New York region back on its feet. Many lost their homes, some lost children and a few are in the hospital with injuries. And yet they’re clearing away debris, handing out food and removing downed trees.”

“Department of Sanitation New York supervisor texted that sanitation workers are sleeping in the garages:  ‘Everyone seems better than one would expect. Some have lost everything.   Hot food has been scarce, and the workers are being fed military MREs.  Brother Michael Lewery’s home on Staten Island was damaged, but he went to work anyway. He ended up in the hospital after he was electrocuted.’ ”

Thursday, November 8th : “We delivered a truck of water and clothing donated by our members to storm-damaged Long Beach.   We went to the Martin Luther King center that, in normal times, serves as a community center and day care facility. The director of the center told us that no agency at all had been there to see them or help them yet.   This center is now serving as an emergency shelter for the community and they were in dire need of assistance. With a nor’easter coming in, they have no heat and the building had drafts and leaks that needed attention. We saw the genuine gratitude from these folks, who truly needed help. It was a proud day to be a Teamster.”

Friday, November 9th:  “The call just went out: The Red Cross desperately needs 400 drivers tonight, tomorrow and Sunday to bring relief supplies to hurricane victims in the New York region.”

Saturday, November 10th: “Teamsters are answering the Red Cross’s call to help distribute clean-up kits and supplies to victims of Hurricane Sandy. We’re getting photos of Teamsters packing and loading supplies in New Jersey warehouses. They’re also driving trucks and forklifts and shuttling volunteers all over the New York region.  This is a 24/7 operation. UPS Teamsters were out in force, doing what they do best: Delivering!”

“Brother Roy Gillespie tells us the Teamsters are renting buses from Teamster employer Jofaz Busing, and Teamsters from Local 854 are driving them to help with the bulk distribution. At noon today, a convoy of 12 trucks driven by Teamsters drove from the warehouse to hard-hit Rockaway. Another convoy of five trucks driven by Teamsters carried supplies to Staten Island.”

Sandy 11.10.12Sunday, November 11th:  “Red Cross warehouses, staging areas and distribution hubs are alive with more than 300 Teamsters and their families today. They’re all pitching in to get desperately needed supplies to victims of Superstorm Sandy in the New York region.”

“The news media is ignoring the extent of the damage, but it’s bad. At least 40,000 people in New York alone are homeless.  In Jersey City Teamsters are helping bag, load and deliver clean-up kits: Large mesh bags that each contain a blanket, work gloves, garden-size trash bags, flashlight and batteries, baby wipes, hand sanitizer and hand and toe warmers.”

“Some Teamsters spent the night in the warehouse. Some brought their spouses and children. The Teamsters rented buses to help move volunteers to staging areas and Teamsters are driving them. We’ve been hearing our experience in logistics (not to mention hard work) has been invaluable. Props to members from the New York City locals, and 210, 804, 707, 177, 282, 812, 817, 854, 730 and 177 who are helping out in the warehouse.”

“And let’s not forget our sanitation brothers from Local 831. They’re still working 12-hour shifts moving mountains of debris.”

Monday, November 12th: “Dozens of Teamsters and their families were already at the Red Cross’s Jersey City warehouse at 7:30 this morning and more were on the way to pack, load and drive supplies to Superstorm Sandy victims.  About 100,000 families suffered losses from the hurricane and the needs are staggering. Brother Roy tells us this is a long-term effort. Hundreds of volunteers will be needed 24/7 for the next two weeks to deliver supplies in the ruined communities. Chris Jordan, who handles Red Cross logistics, is asking for families to come help over the Thanksgiving weekend.”

The Red Cross put together a great Flickr gallery here that gives you an idea of the scope of the operation.

You can help the Teamsters help the storm’s victims.  Read more about their Disaster Relief Fund here.