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Omaha Steve

(99,659 posts)
Sun Feb 17, 2013, 02:12 PM Feb 2013

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


http://nhlabornews.com/2013/02/why-on-earth-is-the-usps-paying-fedex-stockholders-millions-in-dividends/

By Matt Murray | February 17, 2013

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?



FULL story at link.

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Why On Earth Is The USPS Paying FEDEX Stockholders Millions In Dividends (Original Post) Omaha Steve Feb 2013 OP
Because otherwise they'd have to pay living wages marybourg Feb 2013 #1
The only Unionized workers at FedEx are their pilots. A HERETIC I AM Feb 2013 #7
probably flying the mail on FedEx planes. hobbit709 Feb 2013 #2
I believe FedEx does the overnight/Express service for USPS frazzled Feb 2013 #3
That makes sense treestar Feb 2013 #15
We get packages that are sent FedEx to the USPS, then to us, all the time. nt onehandle Feb 2013 #4
Wait a fricking minute...I have a FedEx delivery scheduled for Saturday and WHO DELIVERS IT? angstlessk Feb 2013 #5
Because Congress requires them to. Without massive corporate welfare neither FedEx Egalitarian Thug Feb 2013 #6
USPS gets none HowHasItComeToThis Feb 2013 #8
Can you cite the "corporate welfare" United Parcel receives? n/t A HERETIC I AM Feb 2013 #9
Betcha they have lots of loopholes and credits and probably kestrel91316 Feb 2013 #11
Well, UPS operates under a different set of rules than does FedEx.... A HERETIC I AM Feb 2013 #13
The first and largest is USPS being required to cooperate with them while Egalitarian Thug Feb 2013 #17
But is that "Corporate Welfare"? A HERETIC I AM Feb 2013 #18
Since there is nothing officially titled corporate welfare, I'd say yes. Egalitarian Thug Feb 2013 #19
UPS has turned package delivery into an art. EastKYLiberal Feb 2013 #12
You should examine the USPS systems. No delivery organization in the world even approaches Egalitarian Thug Feb 2013 #16
I had three packages destroyed by UPS brentspeak Feb 2013 #20
I know that UPS has great distribution system - but our delivery guy truedelphi Feb 2013 #22
If USPS pays fedex 1.6 bill to save 2 bill - fine Cicada Feb 2013 #10
Do they actually save 2 billion? ornotna Feb 2013 #14
K & R !!! - Did You Catch This ??? WillyT Feb 2013 #21

marybourg

(12,633 posts)
1. Because otherwise they'd have to pay living wages
Sun Feb 17, 2013, 02:22 PM
Feb 2013

and negotiate semi-decent working conditions with actual unions (which I don't believe FedEx has, although I believe UPS is unionized).

A HERETIC I AM

(24,370 posts)
7. The only Unionized workers at FedEx are their pilots.
Sun Feb 17, 2013, 02:40 PM
Feb 2013

None of their drivers are.

Almost all of UPS drivers are Teamsters. All of the guys driving the brown "Package Cars" are, as well as all of the drivers of the brown road trucks - the tractor trailers.

The UPS Freight drivers are not necessarily union though. If the cab is not brown but says UPS on the door, the driver is likely not a Teamster.

frazzled

(18,402 posts)
3. I believe FedEx does the overnight/Express service for USPS
Sun Feb 17, 2013, 02:30 PM
Feb 2013

They don't deliver it or pick it up; Postal Office workers do that; but they use their airplanes and routes that are already in service. It doesn't make sense for the USPS to own its own fleet of planes and pilots. There's going to be contracting out for those services. And if they didn't offer those services, fewer people would use the USPS. So I kind of get it, though I'm sure FedEx is probably being overpaid.

angstlessk

(11,862 posts)
5. Wait a fricking minute...I have a FedEx delivery scheduled for Saturday and WHO DELIVERS IT?
Sun Feb 17, 2013, 02:34 PM
Feb 2013

The USPS...the same thing happens with UPS..almost ALL Saturday deliveries that is not a giant delivery is delivered by the Post Office...seems THEY should be paying the Post Office?

A HERETIC I AM

(24,370 posts)
13. Well, UPS operates under a different set of rules than does FedEx....
Sun Feb 17, 2013, 03:20 PM
Feb 2013

so without going too deep into it, I would suspect FedEx is getting a better deal than UPS is

 

Egalitarian Thug

(12,448 posts)
17. The first and largest is USPS being required to cooperate with them while
Sun Feb 17, 2013, 03:44 PM
Feb 2013

restrained from competing with them. FedEx is however, much more favored than UPS. UPS didn't buy nearly as much legislative influence as FedEx.

A HERETIC I AM

(24,370 posts)
18. But is that "Corporate Welfare"?
Sun Feb 17, 2013, 04:18 PM
Feb 2013

What you are citing is regulatory, as opposed to them receiving money from the government.

I'm not trying to be argumentative here, but you made a statement and I am just trying to find out what exactly you are talking about.


Keep in mind that UPS is primarily regulated by the DOT as an LTL (Less Than a Load, or Less Than A Truckload) trucking company while Federal Express operates primarily as an airline, if I am not mistaken.

 

Egalitarian Thug

(12,448 posts)
19. Since there is nothing officially titled corporate welfare, I'd say yes.
Sun Feb 17, 2013, 04:52 PM
Feb 2013

When Lockheed is paid a billion dollars to develop some platform that isn't needed and won't work in any case, that is in effect welfare, but we don't call it that.

When a company is granted exclusion from laws that it's competition has to abide by, that is another form of welfare, but we don't call it that.

When a company receives tax breaks or grants or a dozen other privileges not extended to others it is effectively welfare.

Pick the largest company/corporation in virtually any field these days and you can find that it became the largest through some governmental intervention or favoritism.

 

EastKYLiberal

(429 posts)
12. UPS has turned package delivery into an art.
Sun Feb 17, 2013, 03:14 PM
Feb 2013

I watched a documentary that tracked 3 packages from shipper to shipee and it was extraordinary.

 

Egalitarian Thug

(12,448 posts)
16. You should examine the USPS systems. No delivery organization in the world even approaches
Sun Feb 17, 2013, 03:41 PM
Feb 2013

them for efficiency, scale, and performance. UPS developed their system by emulating what the post office did and without the Congressional restraints imposed on USPS, they implemented what USPS could not.

brentspeak

(18,290 posts)
20. I had three packages destroyed by UPS
Sun Feb 17, 2013, 05:03 PM
Feb 2013

and one that ended up getting lost/stolen.

There are good people who work at UPS, and I understand they deal with heavy volumes, and that mistakes can happen. But their package delivery is no way an art and a science. I fault their hideous management, which spends more time trying to screw over and suffocate the rank-and-file employees than trying to run the business.

truedelphi

(32,324 posts)
22. I know that UPS has great distribution system - but our delivery guy
Sun Feb 17, 2013, 05:31 PM
Feb 2013

Is rude crude and clueless.

I do everything I can to see our stuff gets shipped to us via USPS, and/or Fed Ex. The UPS guy once left eight pieces of furniture at our house (Wrong address!) and refused to apologize. It was a July day with a rare July rainstorm, and I had the privilege of clearing out one side of my garage to keep my neighbors' stuff from being ruined. And this is just one example of the hassles he has caused us.


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