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Sun Feb 17, 2013, 01:12 PM

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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Arrow 22 replies Author Time Post
Reply Why On Earth Is The USPS Paying FEDEX Stockholders Millions In Dividends (Original post)
Omaha Steve Feb 2013 OP
marybourg Feb 2013 #1
A HERETIC I AM Feb 2013 #7
hobbit709 Feb 2013 #2
frazzled Feb 2013 #3
treestar Feb 2013 #15
onehandle Feb 2013 #4
angstlessk Feb 2013 #5
Egalitarian Thug Feb 2013 #6
HowHasItComeToThis Feb 2013 #8
A HERETIC I AM Feb 2013 #9
kestrel91316 Feb 2013 #11
A HERETIC I AM Feb 2013 #13
Egalitarian Thug Feb 2013 #17
A HERETIC I AM Feb 2013 #18
Egalitarian Thug Feb 2013 #19
EastKYLiberal Feb 2013 #12
Egalitarian Thug Feb 2013 #16
brentspeak Feb 2013 #20
truedelphi Feb 2013 #22
Cicada Feb 2013 #10
ornotna Feb 2013 #14
WillyT Feb 2013 #21

Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 01:22 PM

1. Because otherwise they'd have to pay living wages

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

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Response to marybourg (Reply #1)

Sun Feb 17, 2013, 01:40 PM

7. The only Unionized workers at FedEx are their pilots.

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.

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Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 01:27 PM

2. probably flying the mail on FedEx planes.

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Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 01:30 PM

3. I believe FedEx does the overnight/Express service for USPS

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.

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Response to frazzled (Reply #3)

Sun Feb 17, 2013, 02:33 PM

15. That makes sense

Today seems to be a day for faux Post Office Outrage.

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Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 01:30 PM

4. We get packages that are sent FedEx to the USPS, then to us, all the time. nt

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Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 01:34 PM

5. Wait a fricking minute...I have a FedEx delivery scheduled for Saturday and WHO DELIVERS IT?

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?

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Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 01:38 PM

6. Because Congress requires them to. Without massive corporate welfare neither FedEx

 

nor UPS could exist.

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Response to Egalitarian Thug (Reply #6)

Sun Feb 17, 2013, 01:41 PM

8. USPS gets none

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Response to Egalitarian Thug (Reply #6)

Sun Feb 17, 2013, 01:44 PM

9. Can you cite the "corporate welfare" United Parcel receives? n/t

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Response to A HERETIC I AM (Reply #9)

Sun Feb 17, 2013, 02:09 PM

11. Betcha they have lots of loopholes and credits and probably

pay little or no corporate income taxes.

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Response to kestrel91316 (Reply #11)

Sun Feb 17, 2013, 02:20 PM

13. Well, UPS operates under a different set of rules than does FedEx....

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

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Response to A HERETIC I AM (Reply #9)

Sun Feb 17, 2013, 02:44 PM

17. The first and largest is USPS being required to cooperate with them while

 

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

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Response to Egalitarian Thug (Reply #17)

Sun Feb 17, 2013, 03:18 PM

18. But is that "Corporate Welfare"?

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.

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Response to A HERETIC I AM (Reply #18)

Sun Feb 17, 2013, 03:52 PM

19. Since there is nothing officially titled corporate welfare, I'd say yes.

 

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.

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Response to Egalitarian Thug (Reply #6)

Sun Feb 17, 2013, 02:14 PM

12. UPS has turned package delivery into an art.

 

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

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Response to EastKYLiberal (Reply #12)

Sun Feb 17, 2013, 02:41 PM

16. You should examine the USPS systems. No delivery organization in the world even approaches

 

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.

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Response to EastKYLiberal (Reply #12)

Sun Feb 17, 2013, 04:03 PM

20. I had three packages destroyed by UPS

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.

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Response to EastKYLiberal (Reply #12)

Sun Feb 17, 2013, 04:31 PM

22. I know that UPS has great distribution system - but our delivery guy

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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Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 01:49 PM

10. If USPS pays fedex 1.6 bill to save 2 bill - fine

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Response to Cicada (Reply #10)

Sun Feb 17, 2013, 02:31 PM

14. Do they actually save 2 billion?

Do you have a link that shows proof of this?

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Response to Omaha Steve (Original post)

Sun Feb 17, 2013, 04:09 PM

21. K & R !!! - Did You Catch This ???

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