4 ms·

Great news for the Teamsters, but how much more inflation is this likely to cause? UPS has to pay for all of this somehow, which means we have to pay for it.

CPLX 3y ago
You sure it’s going to be us instead of shaving half a percent of the Bezos budget for rocketry or something?
- lockhouse 3y ago
  99% sure it’s going to be us. The elites don’t usually do pay cuts.
  - CPLX 3y ago
    So free market forces only work in the market for CEOs and top executives? Here’s a dilemma for you - if they can raise prices for us without any consequence why haven’t they done it alredy?
    - nyargh 3y ago
      Do you not buy your own groceries? They (retailers) clearly already have and had done so well before inflation began to bite suppliers.
      - CPLX 3y ago
        But why do free market forces and concerns about pricing only apply when labor wants higher wages? Do you register the same concerns about all of us being forced to pay higher prices when companies do stock buybacks?
        lockhouse 3y ago
        The unfortunate reality is that in recent years wage increases result in higher prices, less hours for hourly employees, and fewer employees working. Walk in to a McDonald’s now that they’re paying over $15 an hour. There are half the employees in the restaurant than there used to be. They got replaced with touchscreen kiosks. Walmart, same thing, 2 lanes open and the rest is self checkout. Just pay people more isn’t the whole answer.
        CPLX 3y ago
        Are you basing this on walking into stores or like economics or something? We’re currently in a situation of rising employment rates and dropping inflation.
        _2z1p 3y ago
        Inflation is most certainly not dropping. The rate that inflation is increasing is slowing. That's a huge difference. Also the reported rate of inflation is very misleading considering it doesn't include housing, energy, or food costs, which just so happen to be sectors of the economy that experienced the most inflation.
prh8 3y ago
UPS has had record profits lately. Inflation is due to corporate profit record breaking not employee wages.
- lockhouse 3y ago
  If you think UPS won’t charge customers more to cover these costs you’re not paying attention.
  - Tyrubias 3y ago
    The solution is not to prevent workers from getting better wages but to punish companies for profiteering. It can be argued that the current spike in inflation is because companies are raising prices despite record profits
    - lockhouse 3y ago
      I'm not saying that companies should pass these wage increases on to consumers, just that they usually do.
silisili 3y ago
No inflation necessary. Quick math. UPS has 532,000 employees. Let's assume they all work full time(they don't), and all get a $2.75 raise - 2.75 * 40 * 52 = $5,720 per employee 5720 * 532000 = $3,043,040,000 UPS profits 2022: $13,900,000,000 So, a quarter or so of profits.
- einpoklum 3y ago
  The relevant population of workers is 340,000 ; and they don't all work a full-time job. On the other hand, you did not calculate the annuities depending on the hourly rate. Still, probably a lot less than your result. Not to mention how this will probably lock-in UPS workers for a number of years.
  - silisili 3y ago
    Good points. I bet it's close, or a bit below as you said, in reality. The exact details would be impossible to figure out without knowing precisely hours works, how much each person makes, etc. I was trying to roughly show you can increase wages for an entire company without 'causing inflation.' UPS has been jacking up prices the last few years and just pocketing the change. Seems the employees caught on and want their share.

CPLX 3y ago

You sure it’s going to be us instead of shaving half a percent of the Bezos budget for rocketry or something?

lockhouse 3y ago
99% sure it’s going to be us. The elites don’t usually do pay cuts.
- CPLX 3y ago
  So free market forces only work in the market for CEOs and top executives? Here’s a dilemma for you - if they can raise prices for us without any consequence why haven’t they done it alredy?
  - nyargh 3y ago
    Do you not buy your own groceries? They (retailers) clearly already have and had done so well before inflation began to bite suppliers.
    - CPLX 3y ago
      But why do free market forces and concerns about pricing only apply when labor wants higher wages? Do you register the same concerns about all of us being forced to pay higher prices when companies do stock buybacks?
      - lockhouse 3y ago
        The unfortunate reality is that in recent years wage increases result in higher prices, less hours for hourly employees, and fewer employees working. Walk in to a McDonald’s now that they’re paying over $15 an hour. There are half the employees in the restaurant than there used to be. They got replaced with touchscreen kiosks. Walmart, same thing, 2 lanes open and the rest is self checkout. Just pay people more isn’t the whole answer.
        CPLX 3y ago
        Are you basing this on walking into stores or like economics or something? We’re currently in a situation of rising employment rates and dropping inflation.
        _2z1p 3y ago
        Inflation is most certainly not dropping. The rate that inflation is increasing is slowing. That's a huge difference. Also the reported rate of inflation is very misleading considering it doesn't include housing, energy, or food costs, which just so happen to be sectors of the economy that experienced the most inflation.

prh8 3y ago

UPS has had record profits lately. Inflation is due to corporate profit record breaking not employee wages.

lockhouse 3y ago
If you think UPS won’t charge customers more to cover these costs you’re not paying attention.
- Tyrubias 3y ago
  The solution is not to prevent workers from getting better wages but to punish companies for profiteering. It can be argued that the current spike in inflation is because companies are raising prices despite record profits
  - lockhouse 3y ago
    I'm not saying that companies should pass these wage increases on to consumers, just that they usually do.

silisili 3y ago

No inflation necessary. Quick math. UPS has 532,000 employees. Let's assume they all work full time(they don't), and all get a $2.75 raise - 2.75 * 40 * 52 = $5,720 per employee 5720 * 532000 = $3,043,040,000 UPS profits 2022: $13,900,000,000 So, a quarter or so of profits.

einpoklum 3y ago
The relevant population of workers is 340,000 ; and they don't all work a full-time job. On the other hand, you did not calculate the annuities depending on the hourly rate. Still, probably a lot less than your result. Not to mention how this will probably lock-in UPS workers for a number of years.
- silisili 3y ago
  Good points. I bet it's close, or a bit below as you said, in reality. The exact details would be impossible to figure out without knowing precisely hours works, how much each person makes, etc. I was trying to roughly show you can increase wages for an entire company without 'causing inflation.' UPS has been jacking up prices the last few years and just pocketing the change. Seems the employees caught on and want their share.