Teamsters Say No to Driverless Delivery

Teamsters Say No to Driverless Delivery

February 2, 2018

UPS and the Teamsters have opened contract negotiations.  Their last contract was signed in 2013, at the start of the online retail boom.

In light of the large growth in deliveries from online store like Amazon, UPS is looking to add flexibility in this contract to allow competition against other delivery organizations, and meet the increasing demands to speed up delivery of goods.

However, the Teamsters’ initial demands are to prohibit UPS from using drones or driverless trucks. Also, they want to eliminate deliveries after 9:00 pm (including the Christmas delivery season), and hire an additional 10,000 employees.  UPS has added approximately 40,000 employees over the last five years.

This post is based on the Fox Business article, Teamsters Tell UPS: No Drones or Driverless Trucks, by Paul Ziobro, January 24, 2018. 

Discussion Questions
1. Should UPS consider the demands of no drones and no driverless trucks in contract negotiations?

Guidance: Collective bargaining is a difficult process.  Unions typically want to protect their membership, and expand if possible the number of union jobs.  This is exactly what the Teamsters are demanding with these provisions.

Management always wants to provide as much flexibility Continue reading

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Shop Around the Clock ‘Til Christmas

Shop Around the Clock ‘Til Christmas

January 1, 2018

Article Title: Kohl’s, Toys R Us to Stay Open Around The Clock until Christmas

Author of Article: Kelly Tyko

Date of article: December 21, 2017

Source URL: https://www.usatoday.com/story/money/nation-now/2017/12/21/kohls-toys-r-us-stay-open-around-clock-until-christmas/965081001/

This USA Today article describes how Kohl’s and Toy R Us will remain open 24 hours a day leading-up to Christmas.  This is the fifth year that Kohl’s has been open 24 hours a day ending at 6:00 pm on Christmas Eve.  Toys R Us will be open for 63 hours straight ending at 9:00 pm on Christmas Eve.  These stores are hoping to attract the last minute shopper and compete against online shopping by providing added convenience by offering longer shopping hours.

Discussion Questions
1. What operations management issues does staying open 24 hours a day present to Kohl’s and Toys R Us?

Guidance: One obvious issue is staffing the store.  This substantially increases the number of hours they’re open, and the number of customers in the store.  Overtime staffing for regular staff needs to be determined, plus the addition of temporary workers.  Another tactic could be to off-load some of the shopping to online, with in-store pickup.  Inventory Continue reading

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