droppingaduece
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IMO, unions are good for employees but bad for companies.
FedEx currently operates at 87 to 89% (depending on who you ask), ABF operates at over 100% (they're acutually losing money), and Yeller is somewhere around 96-97%.
Why is that you ask? ABF & YRC are union, FedEx is not.
Both ABF (7%) & YRC (15%) have negotiated with the union asking there employees to take a cut in pay, froze their pension contributions, etc... Also, b/c of they're high operating cost, they've been unable to bid on new business or forced to shed existing business b/c they can't overcome they're labor cost disadvantage.
FedEx is currently non-union and we dont have these problems.
Yes, the unions have negotiated more pay and bennies for they're memebers but at what cost? They've caused the companies to barely turn a profit or even lose money! How much longer are ABF employees going to have a job when they continue to lose money? How much longer can YRC hang on only turning a 2-3% profit?
Again, I'll take a little less today in exchange for job security tomorrow instead of having the most today and not knowing if you'll have a job tomorrow.
So if a company is operating at a loss or only turning a 2-3% profit they are going to quit looking for new business & shed existing business. If that was the case every struggling business out there would be closing its doors. That just doesn't make any sense.