UPS Freezes Pay After Volume Drops Most Since 1999 (suspend 401K match)

[underpants]

Source: Bloomberg

Feb. 3 (Bloomberg) -- United Parcel Service Inc., the world’s largest package-delivery company, said it’s freezing management salaries and suspending retirement contributions after U.S. volume plunged the most in nine years. The shares rose.

UPS said its domestic shipments, which typically mirrors U.S. gross domestic product, dropped 3.9 percent in the fourth quarter, the Atlanta-based company said today in a statement. That was the biggest decrease since the company’s initial public offering in 1999 as businesses and consumers spent less.

UPS said it was suspending matches to employees’ 401(k) retirement accounts. The company didn’t make changes to its defined benefit pension plans.

The pay freeze will affect 30,000 managers, spokesman Norman Black said, or about 7 percent of the company’s global workforce of 425,000.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aRX._5ije_cQ&refer=home

[HereSince1628]

1. As of a minute ago...trading up 7% over yesterday's close

Looks like investors think this is the sort of "medicine" the company needs.

[Skink]

2. At work we do special ordering for our customers and items are ariving in less than a day.

and that is for no extra fee.

[ogneopasno]

3. Interesting that they're bringing the hurt on the managers.

That's what a union contract can do for you.

[Gin]

4. Wow....they have a defined benefit plan........that is not common

anymore....it's 401K that is offered...if companies offer any retirement plan at all.

[ogneopasno]

5. Union carpenters in Minnesota have both a defined benefit and a defined contribution pension plan.

But then, they also manage it themselves.

[RobinA]

6. Working There

Full-time permanent is a license to print money.