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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWhy 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 Services 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 theyre about to cut delivery service by one day a week. Does this make any sense at all?
FULL story at link.
marybourg
(12,633 posts)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)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.
hobbit709
(41,694 posts)frazzled
(18,402 posts)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.
treestar
(82,383 posts)Today seems to be a day for faux Post Office Outrage.
onehandle
(51,122 posts)angstlessk
(11,862 posts)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?
Egalitarian Thug
(12,448 posts)nor UPS could exist.
HowHasItComeToThis
(3,566 posts)A HERETIC I AM
(24,370 posts)kestrel91316
(51,666 posts)pay little or no corporate income taxes.
A HERETIC I AM
(24,370 posts)so without going too deep into it, I would suspect FedEx is getting a better deal than UPS is
Egalitarian Thug
(12,448 posts)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)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)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)I watched a documentary that tracked 3 packages from shipper to shipee and it was extraordinary.
Egalitarian Thug
(12,448 posts)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)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)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.
Cicada
(4,533 posts)ornotna
(10,803 posts)Do you have a link that shows proof of this?