https://www.freightwaves.com/news/fedex-initiates-targeted-layoffs-ups-shed-workers-at-ontario-airport
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Many articles about it. Can find by punching in 'rural deferred program'.
As long as the box is Not in the delivery truck it can be stored any place inside or outside of the hub and still be called "in transit". Thats how they get away with 'rural deferral'.
Much business is being lost due to Rural Deferral by sellers also as the stagnate delivery time makes their own business look cheap and slow on getting product to customers. A decision needs to be made ...are we in the storage business or the package delivery business?
"Rural Deferral" started around August. This has made a lot of customers switch to other carriers. Holds packages at center until there is enough to make trip worth it. While customers goods rot and are mangled and rolled around in storage they save money. The package is at center/hub but your computer says "in transit". Premium shipping was paid but your package is stored. What a bad idea and it has backfired. Many complaints have fallen on deaf ears.
UPS, which is also adjusting to lower demand and higher operating costs from the new Teamster contract signed last year, plans to terminate 333 workers at its regional air hub at Ontario International Airport in California next month.
In a notice to the state Employment Development Department, the integrated delivery company said the layoffs are necessary because of lower air volumes. The Daily Bulletin, a local newspaper, first reported the airport reductions, which include supervisors and employees who process packages.
In 2023, UPS revenue was down 9.3% and adjusted operating income fell 28.7% to $9.9 billion.
In January, the company said it would cut 12,000 full- and part time management and contract jobs in response to the weak performance. Headwinds include a reset of an overheated parcel market, greater competition from Amazon and the U.S. Postal Service and sharply higher labor costs associated with last year’s new Teamster contract.
UPS is also consolidating sort centers to gain efficiency through technology and economies of scale. Facilities that handle fewer packages are candidates for closure.
Management has said it expects the first quarter to be the most difficult of the year before profits improve in the second half.
UPS is also cutting dozens of jobs at its Charlotte, North Carolina, delivery center and laying off 331 people at a sort center that will be closed in Portland, Oregon, because of slow throughput, according to the Charlotte and Portland Business Journals.
“We continue to right-size our network and staffing to meet volume demands and maintain industry-leading service. Our employees are extremely important to us, and we are working to place as many employees as possible in other positions. We remain committed to working with them throughout this transition and providing support,” said UPS in a statement.