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Non-Tech : The UPS Strike- Opportunity of the year?
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To: John Liu who wrote (3)8/13/1997 1:07:00 AM
From: Rubble   of 25
 
One consequence of the UPS strike that I find inevitable is that UPS will raise prices. Not only will UPS want to recover the hundreds of millions already lost, they'll have higher costs as a result of the concessions they'll make to their workers. Also, their business won't be quite the same, even if they recapture most of it, since companies will want to now retain links to other cariers for defense. Even if UPS regains all but 10% of its previous volume once the strike is over, that's an incredible windfall for competitors. I however think 10% is a conservative estimate, and in any case prices will have to go up to compensate for lower volume. In sum, I think permanent damage has been done to UPS, and even if the strike ended tomorrow (highly unlikely), the competition would be in much better shape than they were pre-strike.
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