silvertooth
TB Lurker
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I know of no other company that disciplines employees for using allotted sick pay. I think they are just plain mean and inconsiderate. Who drafted that attendance policy, anyone wanna guess?
I hate to say it, but "resolved contract in our favor" and
"employer may stop looking at us as the enemy" will not
go together. I know that nobody on this site cares, but
the VP's will never look at the teamsters any other way.
They believe that they were lied to in the last round, and
that will never go away. Now, they have backed down on
one of the two items that both sides feel strongly about,
and still the union is standing firm on the health care
issue. Again, nobody here really cares if the VP's are
happy or even satisfied, but they aren't going to be
either of those. They state that their plan is to be able to
celebrate a 100th birthday, and also pass the company
on the another generation. However, at what cost? If
I were one of the kids, I wouldn't want a company that
could not compete, and they believe that in today's market,
they can't with the current labor costs.
The company must show respect at the bargaining table,
but the respect doesn't go in the other direction? How is
that supposed to work?
The company expanded too far, too fast? Perhaps, but if
the company were still only moving freight in the PNW,
the wage structure that they could afford to pay the union
members would be much less than it is right now. Take
some time and ask what the average revenue per bill is
for regional shipments only, without fuel. Probably around
$50-$75. Calculate the cost of equipment, linehaul, and
the person picking up on one end and delivering on the
other, and there is no way that you can make any kind
of profit. Now, add the revenue per shipment on the
freight moving into and out of California and Nevada.
The number bumps up significantly, and supplements
the regional, which allows the company to keep wages
up. Same with the partnership business.
Don't think this is real? Look at the total compensation
packages for Express, Titan, or any other small company
that only handles freight in the PNW. Think Oak Harbor
needs better equipment? Take a look at what Express
can afford given the rates they have to charge to compete
in the market. Why do you suppose that Old Dominion
isn't continuing to utilize the Priority regional system?
Because the money is in national service, not PNW. UPS
Freight handles regional business, but that is not their
primary sell. National, long haul business is. USF breaks
even on the regional business, the profit comes from their
interchanging with Holland.
What was the benefit to Estes to outright purchase GI?
Not to get a regional carrier. They wanted direct service
on the national market.
See the pattern here? You might be the only person that
would want a regional carrier, because you might be the
only person that actually believes that it would "dominate".
The company must show respect at the bargaining table,
but the respect doesn't go in the other direction? How is
that supposed to work?
The company expanded too far, too fast? Perhaps, but if
the company were still only moving freight in the PNW,
the wage structure that they could afford to pay the union
members would be much less than it is right now. Take
some time and ask what the average revenue per bill is
for regional shipments only, without fuel. Probably around
$50-$75. Calculate the cost of equipment, linehaul, and
the person picking up on one end and delivering on the
other, and there is no way that you can make any kind
of profit. Now, add the revenue per shipment on the
freight moving into and out of California and Nevada.
The number bumps up significantly, and supplements
the regional, which allows the company to keep wages
up. Same with the partnership business.
Don't think this is real? Look at the total compensation
packages for Express, Titan, or any other small company
that only handles freight in the PNW. Think Oak Harbor
needs better equipment? Take a look at what Express
can afford given the rates they have to charge to compete
in the market. Why do you suppose that Old Dominion
isn't continuing to utilize the Priority regional system?
Because the money is in national service, not PNW. UPS
Freight handles regional business, but that is not their
primary sell. National, long haul business is. USF breaks
even on the regional business, the profit comes from their
interchanging with Holland.
What was the benefit to Estes to outright purchase GI?
Not to get a regional carrier. They wanted direct service
on the national market.
See the pattern here? You might be the only person that
would want a regional carrier, because you might be the
only person that actually believes that it would "dominate".
Who says respect has mutual?
While you are out there throwing around #'s, go get some rate quotes. Anyone that knows anything about ltl knows that specialized shipments are where the real money is, next day, and guaranteed shipments, make up a large portion of the profits for all ltl carriers I won't throw around made up #'s to support that, but ask your sales people. Look at FXF West they are set up as a regional and they have grown and expanded more than any company in ltl in the last 10 years. I believe their wages exceed Oak Harbors.
Oak Harbor does not need a supplemental income they are profitable as is, they would open their books and cry poor if they were, and this situation would be different.
Who's Express and Titan? Little tiny carriers with high turnover and low quality of service, we should follow their lead? When USF Reddaway was realigned with their traditional footprint (which is almost identical to OHFL's) they snapped back into the black. Holland and Reddaway are not national carriers, they do not interline a great deal of freight, they make their money with regional guaranteed and next day service. More recently the trend has been for national carriers to increase one and two day lanes (see regional/Velocity COO) to pick up some of these specialized shipment that company's like OHFL and USF have been cashing in on big time for years.
Estes purchasing GI is just part of the industry consolidation trend. I don't even know what OD's priority network is, but I wouldn't base my judgments on industry trends just because one carrier dropped a service.
My feeling is the market OHFL operates in is getting more competitive, we are in a economic downturn and companies will get squeezed and more consolidation will occur. If the time comes that OHFL truly needs economic concessions to remain profitable, then I say work with them. Now is not that time these are unreasonable demands with out a basis in reason, OHFL has every advantage with their crazy concessionary contract. If they don't want to play fair, and they want to further decimate standards in this industry, Teamsters will shut them down.
I agree that consolidations will continue, and that the
squeeze is on. Where we do not agree is the time when
the concessions are needed to make Oak Harbor viable
for the future. You say later. I believe now.
The company must show respect at the bargaining table,
but the respect doesn't go in the other direction? How is
that supposed to work?
The company expanded too far, too fast? Perhaps, but if
the company were still only moving freight in the PNW,
the wage structure that they could afford to pay the union
members would be much less than it is right now. Take
some time and ask what the average revenue per bill is
for regional shipments only, without fuel. Probably around
$50-$75. Calculate the cost of equipment, linehaul, and
the person picking up on one end and delivering on the
other, and there is no way that you can make any kind
of profit. Now, add the revenue per shipment on the
freight moving into and out of California and Nevada.
The number bumps up significantly, and supplements
the regional, which allows the company to keep wages
up. Same with the partnership business.
Don't think this is real? Look at the total compensation
packages for Express, Titan, or any other small company
that only handles freight in the PNW. Think Oak Harbor
needs better equipment? Take a look at what Express
can afford given the rates they have to charge to compete
in the market. Why do you suppose that Old Dominion
isn't continuing to utilize the Priority regional system?
Because the money is in national service, not PNW. UPS
Freight handles regional business, but that is not their
primary sell. National, long haul business is. USF breaks
even on the regional business, the profit comes from their
interchanging with Holland.
What was the benefit to Estes to outright purchase GI?
Not to get a regional carrier. They wanted direct service
on the national market.
See the pattern here? You might be the only person that
would want a regional carrier, because you might be the
only person that actually believes that it would "dominate".
On a happier note......lets all hope for a resolved contract in our favor so that our employer may stop looking at us as the enemy and be a little bit more down to earth and realistic...hopefully...but I guess every teamster you fire is one more guy hired that will most likely cross a line, gotta prepare for the worst as they say.
Oak harbor has fine equiptment, probably the best of all the carriers I've seen, with the exception of the CF purchases that were such a "good deal.".
Finally, I have to mention your comment on FedEx. I
would bet that their wage package is higher than Oak
Harbor. As you say, they are non union. I would also
bet that Con-Way has a wage package higher than
Oak Harbor. Same union issue. The arguement could
be made that they are allowed to exploit their workers
because they are not protected, and I am certain that
many on this forum would say that. The other side of
the fence would say that they are able to operate more
efficiently without the restrictions of a contract, which
allows them to be more profitable, and pass some of
the gains to the employees. Everyone has a personal
opinion on this.
I agree that consolidations will continue, and that the
squeeze is on. Where we do not agree is the time when
the concessions are needed to make Oak Harbor viable
for the future. You say later. I believe now.
Little factoid on the "CF" purchases: new trailers with captive beams, if you look at the registration plate on the nose of the trailer you would see that all of these trailers have been rebuilt there original production date is something like 1985. Since OHFL is so proud of their commitment to safety I think it is funny that they purchases these trailers. ABS equipment is expensive, and commonly fails, these trailers were rebuilt to skirt a recent federal law that required all newly produced trailers to have ABS.
Who says respect has mutual?
While you are out there throwing around #'s, go get some rate quotes. Anyone that knows anything about ltl knows that specialized shipments are where the real money is, next day, and guaranteed shipments, make up a large portion of the profits for all ltl carriers I won't throw around made up #'s to support that, but ask your sales people. Look at FXF West they are set up as a regional and they have grown and expanded more than any company in ltl in the last 10 years. I believe their wages exceed Oak Harbors.
Oak Harbor does not need a supplemental income they are profitable as is, they would open their books and cry poor if they were, and this situation would be different.
Who's Express and Titan? Little tiny carriers with high turnover and low quality of service, we should follow their lead? When USF Reddaway was realigned with their traditional footprint (which is almost identical to OHFL's) they snapped back into the black. Holland and Reddaway are not national carriers, they do not interline a great deal of freight, they make their money with regional guaranteed and next day service. More recently the trend has been for national carriers to increase one and two day lanes (see regional/Velocity COO) to pick up some of these specialized shipment that company's like OHFL and USF have been cashing in on big time for years.
Estes purchasing GI is just part of the industry consolidation trend. I don't even know what OD's priority network is, but I wouldn't base my judgments on industry trends just because one carrier dropped a service.
My feeling is the market OHFL operates in is getting more competitive, we are in a economic downturn and companies will get squeezed and more consolidation will occur. If the time comes that OHFL truly needs economic concessions to remain profitable, then I say work with them. Now is not that time these are unreasonable demands with out a basis in reason, OHFL has every advantage with their crazy concessionary contract. If they don't want to play fair, and they want to further decimate standards in this industry, Teamsters will shut them down.
S.T. -
Not sure if you saw the quarterly results for YRC. The
regional group of carriers dropped 11.69% in total revenue
vs. 2007 second quarter, dropped 86.3% in net income,
and daily tonnage was down 17.6%.
All of this was after they pulled their operation back into
the more traditional footprint, which you claim is their
most profitable.
Anyone who knows anything about LTL . . .