UPS 2009 Annual Report Download - page 20

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Employees
We had approximately 408,000 employees as of December 31, 2009, of which 340,000 are in the U.S. and
68,000 are located internationally.
As of December 31, 2009, we had approximately 254,000 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, 2013.
We have approximately 2,800 pilots who are employed under a collective bargaining agreement with the
Independent Pilots Association (“IPA”), which becomes amendable at the end of 2011. In February 2010, we
announced plans to furlough at least 300 of our airline pilots, after efforts between the Company and the IPA
failed to identify sufficient operating cost savings. If the furloughs go forward, they would be phased in order to
better match our resources to current economic conditions.
Our airline mechanics are covered by a collective bargaining agreement with Teamsters Local 2727, which
became amendable in November 2006. We began formal negotiations with Teamsters Local 2727 in October
2006. In addition, the majority (approximately 3,400) 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 (“IAM”). In July 2009, a new agreement with the IAM was
ratified, which runs through July 31, 2014.
We believe that our relations with our employees are good. We periodically 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.
We consistently receive numerous awards and wide recognition as an employer-of-choice, resulting in part
from our emphasis on diversity and corporate citizenship.
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 and freight delivery industry and, therefore, compete with many different
local, regional, national and international companies. Our competitors include worldwide postal services, various
motor carriers, express companies, freight forwarders, air couriers and others. Through our supply chain service
offerings, we compete with a number of participants in the supply chain, financial services and information
technology industries.
Competitive Strengths
Our competitive strengths include:
Integrated Global Network. We believe that our integrated global ground and air network is the most
extensive in the industry. It is the only network that handles all levels of service (air, ground, domestic,
international, commercial, residential) through a single pickup and delivery service system.
Our sophisticated engineering systems allow us to optimize our network efficiency and asset utilization on a
daily basis. This unique, integrated global business model creates consistent and superior returns.
We believe we have the most comprehensive integrated delivery and information services portfolio of any
carrier in Europe. In other regions of the world, we rely on both our own and local service providers’ capabilities
to meet our service commitments.
Global Presence. UPS has the most balanced presence throughout the world.
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