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lockhouse

Great news for the Teamsters, but how much more inflation is this likely to cause?

UPS has to pay for all of this somehow, which means we have to pay for it.

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UPS has had record profits lately. Inflation is due to corporate profit record breaking not employee wages.

If you think UPS won’t charge customers more to cover these costs you’re not paying attention.

The solution is not to prevent workers from getting better wages but to punish companies for profiteering. It can be argued that the current spike in inflation is because companies are raising prices despite record profits

I'm not saying that companies should pass these wage increases on to consumers, just that they usually do.

No inflation necessary.

Quick math. UPS has 532,000 employees. Let's assume they all work full time(they don't), and all get a $2.75 raise -

2.75 * 40 * 52 = $5,720 per employee

5720 * 532000 = $3,043,040,000

UPS profits 2022: $13,900,000,000

So, a quarter or so of profits.

The relevant population of workers is 340,000 ; and they don't all work a full-time job. On the other hand, you did not calculate the annuities depending on the hourly rate. Still, probably a lot less than your result. Not to mention how this will probably lock-in UPS workers for a number of years.

Good points. I bet it's close, or a bit below as you said, in reality.

The exact details would be impossible to figure out without knowing precisely hours works, how much each person makes, etc. I was trying to roughly show you can increase wages for an entire company without 'causing inflation.' UPS has been jacking up prices the last few years and just pocketing the change. Seems the employees caught on and want their share.

You sure it’s going to be us instead of shaving half a percent of the Bezos budget for rocketry or something?

99% sure it’s going to be us.

The elites don’t usually do pay cuts.

So free market forces only work in the market for CEOs and top executives?

Here’s a dilemma for you - if they can raise prices for us without any consequence why haven’t they done it alredy?

Do you not buy your own groceries? They (retailers) clearly already have and had done so well before inflation began to bite suppliers.

But why do free market forces and concerns about pricing only apply when labor wants higher wages?

Do you register the same concerns about all of us being forced to pay higher prices when companies do stock buybacks?

The unfortunate reality is that in recent years wage increases result in higher prices, less hours for hourly employees, and fewer employees working.

Walk in to a McDonald’s now that they’re paying over $15 an hour. There are half the employees in the restaurant than there used to be. They got replaced with touchscreen kiosks.

Walmart, same thing, 2 lanes open and the rest is self checkout.

Just pay people more isn’t the whole answer.

Are you basing this on walking into stores or like economics or something?

We’re currently in a situation of rising employment rates and dropping inflation.

Inflation is most certainly not dropping. The rate that inflation is increasing is slowing. That's a huge difference.

Also the reported rate of inflation is very misleading considering it doesn't include housing, energy, or food costs, which just so happen to be sectors of the economy that experienced the most inflation.

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