UPS 2010 Annual Report Download - page 19

Sales and Marketing
The UPS worldwide sales organization is responsible for the complete spectrum of UPS products and
services. Our sales force includes specialized groups that work with our general sales organization to support
UPS subsidiaries and specialized products.
In early 2010, we completed a streamlining of the U.S. Domestic Package operations, and as part of the
restructuring, we expanded our outreach to customers by strengthening local sales and marketing efforts.
Our worldwide marketing organization, which was also reorganized in 2010, supports our global small
package, supply chain and freight businesses. Our corporate marketing function is engaged in market and
customer research, brand management, segment management, rate-making and revenue management policy,
pricing, new product development, product portfolio management, marketing alliances, and technology
marketing, including the non-technical aspect of our web presence. Advertising, public relations, brand
management, and most formal marketing communications are generally 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, market analysis and opportunity identification,
segment management, and customer profitability management.
In 2011, we are implementing a major sales force reorganization to better align our sales resources with
customer business processes along industry verticals. Our goal is to enhance the customer experience when
dealing with the extensive scope of UPS capabilities at any point in the shipping or supply chain management
process.
Employees
We had approximately 400,600 employees as of December 31, 2010, of which 330,600 are in the U.S. and
70,000 are located internationally.
As of December 31, 2010, we had approximately 250,000 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, which becomes amendable at the end of 2011. 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, and have been under the guidance of
the National Mediation Board since January 2008. In January 2011, we reached a tentative agreement with
Teamsters Local 2727 which will run through November 1, 2013 when ratified. In addition, the majority
(approximately 3,300) 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”). Our agreement with the IAM 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.
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