UPS 2005 Annual Report Download - page 23

engaged in market and customer research, brand management, rate-making and revenue management policy, new
product development, product portfolio management, marketing alliances and e-commerce, including the
non-technical aspects of our web presence. Advertising, public relations, and most formal marketing
communications are centrally developed and controlled.
In addition to our corporate marketing group, field-based marketing personnel are assigned to our individual
operating units, and are primarily engaged in business planning, bid preparation and revenue management
activities. These local marketing teams support the execution of corporate initiatives while also managing limited
promotional and public relations activities pertinent to their local markets.
Employees
As of December 31, 2005, we had approximately 407,000 employees.
We have received numerous awards and wide recognition as an employer-of-choice, including the
following:
• In February 2006, we were rated the “America’s Most Admired” company in our industry in a
FORTUNE magazine survey, as well as ranked in the Top 20 among all American companies. We
achieved Top 10 rankings for “people management” and “management quality”.
• In 2005, we were ranked in the Top 5 companies in The Wall Street Journal / Harris Interactive
Corporate Reputation Study.
•Hispanic Magazine recognized us in 2005 as a leader in its annual “Corporate 100,” a list of companies
providing the most opportunities for Hispanics.
• In August 2005, Black Professionals Magazine named UPS to its “Top 25 Companies for African
Americans” list, based on workforce diversity initiatives.
• In 2004, we were named one of DiversityInc magazine’s “Top 50 Companies for Diversity” and “Top
10 Companies for Latinos”.
• In 2004, we were ranked ninth in Computer World’s “100 Best Places to Work in IT”.
As of December 31, 2005, we had approximately 241,000 employees employed under a national master
agreement and various supplemental agreements with local unions affiliated with the International Brotherhood
of Teamsters (“Teamsters”). These agreements run through July 31, 2008. The majority of our pilots are
employed under a collective bargaining agreement with the Independent Pilots Association, which became
amendable December 31, 2003. Negotiations are ongoing with the assistance of the National Mediation Board.
Our airline mechanics are covered by a collective bargaining agreement with Teamsters Local 2727, which
becomes amendable on November 1, 2006. In addition, the majority of our ground mechanics who are not
employed under agreements with the Teamsters are employed under collective bargaining agreements with the
International Association of Machinists and Aerospace Workers. These agreements run through July 31, 2009.
We believe that our relations with our employees are good. Every year we survey all our employees to
determine their level of job satisfaction. Areas of concern receive management attention as we strive to keep UPS
the employer of choice among our employees.
Competition
We are the largest package delivery company in the world, in terms of both revenue and volume. We offer a
broad array of services in the package delivery industry and, therefore, compete with many different companies
and services on a local, regional, national and international basis. Our competitors include the postal services of
the United States and other nations, various motor carriers, express companies, freight forwarders, air couriers
and others.
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