Mass Paycheck Shortages: UPS

[Omaha Steve]

http://cybersteward.net/2009/01/04/mass-paycheck-shortages/

Hundreds of Teamster-represented UPS employees in the Metro-Philadelphia District received short paychecks this past week. Members of management acknowledged that up to 900 hub employees at the Willow Grove facility have yet to receive pay for the Christmas holiday.

No other details or reasoning were given, and employees were told that corrections would be made in the following week’s pay — despite contract language requiring shortages of this size be paid within two business days following the company’s awareness of such shortages.

One cannot help but wonder how such a “mistake” could have been made, especially considering rumblings earlier in December of alleged management intent at UPS Freight to deprive employees of holiday pay due to a layoff day. That plan was reportedly averted, though with a similar layoff day imposed on workers at UPS, the possibility of company payroll misinterpreting the company’s obligations and voiding holiday pay does exist.

Though no express contract language provides for an automatic penalty for such a widespread shortage, an investigation into the company’s failure to meet payroll obligations may be in order.

[HeraldSquare212]

1. Cash on hand is one of the financial measures of a company

If their fiscal year is the calendar year, it could well be an attempt by UPS or the local operating unit to goose their year-end results.

[NOW tense]

2. True I didn't think of it that way.

I was thinking they didn't have enough money and banks weren't giving them any, but what your saying makes a lot of sense. By making a "mistake" they are fluffing their final quarterly earnings.

[napi21]

3. No. That would be mistating earnings. Any payments that are

DUE, wether they are paid or not must be accrued.

[HeraldSquare212]

5. Yes, it would show up as a payment due, but the cash on hand would show up, also

[napi21]

6. It wouldn't accoumplish anything. If you have $5 million in cash

but have liabilities of $5.5 million, the COH means NOTHING.

[HeraldSquare212]

8. It does, they are separate reported measures.

people can determine the net, etc., but cash on hand is a separate measure, in fact, senior management bonuses are usually based in part on that metric.

[xchrom]

4. recommend

[Earth Bound Misfit]

7. Are these "shortages" limited to just this particular local?

This problem arose allegedly due to poorly written language in the contract:

http://tdu.org/node/2665

Members Stop UPS Freight from Stealing Christmas
December 17, 2008: UPS Freight tried to steal Christmas from 12,000 Teamsters. That won’t happen thanks to union action.

UPS Freight management tried to get out of paying holiday pay for Dec. 24 and 25 by declaring Dec. 26 a “no service day.”

Poorly-written language in the UPS Freight agreement states Teamsters will get holiday pay “provided they work either the day before and the day after the holiday.” (Article 25, Section 4)

The company claimed that since no one is working on Dec. 26, they don’t have the two holidays.

Teamsters at numerous terminals filed grievances—and they’ve won.

UPS management is now agreeing to pay holiday pay for all Teamsters who work both their last scheduled tour before the Christmas holiday, and their first scheduled tour after the holiday.

This victory shows that when Teamsters stick together and make our voices heard, we can make even the world’s largest transportation company deliver.

UPS Freight contract: http://tdu.org/files/Final_MASTER_MODEL_080326_0.pdf

[norepubsin08]

9. sounds like everybody involved should sue them in court

ask for lost interest, reimbursement of any late fees or overdrafts incurred because of it and most of all for attorney fees and court costs..that would cost UPS a bundle and make them think about doing it again!

[Jane Austin]

10. Was the layoff day the day after Christmas?

We didn't get any shipments that day.