USPS to Challenge UPS on Price, Not Just Service

April 13, 2008 – 11:44 pm

The US Post Office is promising to give UPS and other small parcel carriers a run for their money by - for the first time in history - offering price breaks to volume shippers. Up until this point, the USPS charged all customers the same price for identical mail pieces of a given class regardless of quantity mailed, basing all discounts on the degree to which the mail was prepared for delivery and automation by the shipper.

USPS began to update its pricing models a couple of years ago by rewarding customers who use online labels with discounts. The online labels reduce the cost of handling the items, since PostNet bar codes and other automation features are applied before the item is entered into the mail stream, instead of manually by a sort facility. Complete information on the new pricing can be found at: http://www.usps.com/prices.

UPS Sues New Jersey Lawyer for Trademark Infringement

April 6, 2008 – 2:47 pm

UPS has sued a New Jersey lawyer, Samuel Z. Brown, of The Law Offices of Samuel Z. Brown - for supposedly infringing on UPS’s trademarks involving the color brown, including the use of Sam’s last name in the domain for his firm’s website.

From The Daily Report:

UPS objects to Brown’s Web site, www.sambrownlaw.com, and his uses of the phrase “See What Brown Can Do for You,” and his “Brown Engine” that performs a “See What Brown Can Find for You” search function. The 101-year-old UPS has used brown as a signifier since 1916, according to court papers. One of the parcel service’s founders, chose the color brown for company uniforms and delivery vehicles because the color “reflected class, elegance and professionalism,” the company said in its pleadings.

Its quite hilarious that UPS thinks it owns exclusive rights to a color which also happens to be a last name. None the less, this is a suit UPS is unlikely to win as the courts have held that common terms can be used by multiple trademark holders in unrelated businesses. For instance, Best Buy would have a hard time suing someone who uses the term “Buy Here, Pay Here” to sell cars.

Since UPS is filing frivolous lawsuits, it has crossed the mind of The United Package Smashers’s webmaster that we could be the next target, since we make use of another part of their trademarked terms “United Package”. We have also made various uses of their brown color scheme in the past.

UPS Volume Down, Blames UPS Economy

March 28, 2008 – 10:51 pm

UPS blames the US Economy - and not its customer service - for a recent downturn in shipping volume. There are now signs that the economy is sliding further, as volumes decrease further and UPS issues another warning that it may miss its earnings goal. Its main competitors - FedEx and DHL - are not faring much better, either.

Update: UPS Pays $254,000 to Fired Whistleblower

March 23, 2008 – 5:40 pm

Daniel Peterson of Redwood will collect more than a quarter of a million dollars in damages after the company and Peterson reached a settlement in a lawsuit he filed last year. United Package Smashers previously wrote about the incident here. Peterson, a UPS Mechanic, was fired after he put unsafe trucks out of service against management’s orders. In the terms of the settlement, UPS admitted no guilt, will pay $254,000.00 to Peterson, will post OSHA Whistle Blower Fact Sheets and will not prevent whistle blowers from coming forward in the future. The Department of Labor made the settlement public on March 19th, 2008.

What Can Brown Do For You? Deliver Your Cocaine!

March 22, 2008 – 9:57 pm

UPS has been connected to drug crimes alot lately. Just a few days ago we ran a story about how UPS had found some parcels containing pot. Now comes a report that 14-year veteran UPS driver delivered more than just parcels: he also transported the occasional illicit substance. Police say they witnessed Amilcar Caballero-Pardo leaving packages of cocaine at stops along his route.

UPS Settles Lawsuit Filed by Whistleblower

March 16, 2008 – 8:02 pm

Documents recently filed show UPS is taking steps to settle a lawsuit filed by a mechanic for the company who complained about unsafe UPS trucks. The mechanic, having found cracked or rusted frames on at least four UPS trucks, removed inspection certifications for those trucks and was fired four days later for “falsification of company and legal documents, poor workmanship in the repairs you [the employee] made to the vehicles and failure to follow methods and procedures.” The lawsuit had prompted an investigation by the attorney general to determine if the company deliberately kept unsafe trucks on the road.

UPS Driver Sues UPS, Wins

March 9, 2008 – 8:49 pm

UPS Driver Paul Warren, 43, of Rockport, Maine filed a lawsuit against UPS after he was diagnosed with epilepsy. He won a jury verdict against the company back in 2007, now the U.S. Court of Appeals for the First Circuit has upheld the riling. The crux of the issue involves US DOT guidelines and CDL licensing requirements.

From MaineToday.com:

When he was cleared to drive again, UPS said he had to have a federal Department of Transportation driving card even though it isn’t required by Maine or the federal government to drive vehicles weighing less than 10,001 pounds. Warren was driving a 8,500-pound truck.

He claimed that the policy violated the Maine Human Rights Act and successfully sued UPS in U.S. District Court, winning a jury verdict in March 2007.

UPS, Churchill Downs & NASCAR Launch Joint Promotion

March 5, 2008 – 1:02 pm

Churchill Downs, United Parcel Service and NASCAR have teamed up to in an effort to promote the 134th running of The Kentucky Derby. The UPS car #44 will feature Derby imagery and will race a week before the Derby. For it’s part, Churchill is holding an online sweepstakes called “Off to the Races Delivered by UPS”. The grand prize is two tickets to the Aaron’s 499, two tickets to the Kentucky Derby and a behind-the-scenes meeting with UPS car driver David Reutimann.

UPS Pulls a Little Enron, Restates Earnings

March 3, 2008 – 7:39 pm

UPS has apparently pulled off a “small” Enron, restating its earnings to a reflect a loss of $2.52 per share, up from $2.46. A seemingly small amount, but over UPS’s many millions of shares, it adds up. Shareholders were unhappy about the prospect to say the least, sending the stock down an additional 2%.

UPS/MBE Franchisee Fights Shipping Giant for Her Survival

February 29, 2008 – 9:15 am

When Bridgette Waller opened her Mail Boxes, Etc. (MBE) franchise here 14 years ago, she was so successful that the company made her the star of a television commercial complete with a tagline, “Can your mailbox do that?”

Waller’s first years as a Mail Boxes Etc. franchisee were so profitable that she won numerous company awards and was even featured in an article in Black Enterprise Magazine. But when UPS bought Mail Boxes Etc. in 2001, the financial bubble burst for Waller. The sales and profits for her once successful store were never to return, as UPS abandoned the profitable MBE franchise brand.

“At first UPS promised us that a new business model would realize improved sales and profits for everyone,” said Waller. “But it soon became clear to all of us that the only ones in this new relationship to make money would be UPS.”

The years following the acquisition by UPS continued to be difficult financial ones for Waller.

When her franchise agreement expired in 2006, UPS refused to allow her to renew as an MBE despite such renewal being specifically allowed in her franchise agreement. The only option UPS gave her was to convert to the largely unprofitable UPS Store brand or go out of business. Therefore, she made the painful decision to remain in business as the independent “Xpress Ship & Notary.” Then she received a phone call from her doctor that changed her life forever. Waller was diagnosed with breast cancer!

“I am an optimistic person by nature,” said Waller. “But when I was forced to go independent it was like starting all over again. I lost 14 years of branding as a Mail Boxes Etc. store and overnight my customers were confused. They thought I had gone out of business as I had to create a new business I named Xpress Ship & Notary, located at 215 East Orangethorpe Blvd., Fullerton. With my breast cancer diagnosis coupled with the forced business change — I realized I was faced with two of the most serious challenges of my life.”

Going independent and battling cancer together has made the last two years difficult ones for Waller and her family. “We have cashed in our savings, sold property and a car, and we have refinanced our home in an effort to keep the business operating,” she added.

Waller is one of 130 former or current MBE franchisees who organized as the Platinum Shield Association (PSA) in 2003 and filed suit against UPS for alleged illegal actions and intentionally misleading statements by the shipping giant. That lawsuit, now in Los Angeles Superior Court, gives Waller and her fellow PSA members hope that they will soon have their day in court to challenge UPS’ action. Waller pointed out that UPS Store franchisees won a major court decision last October, when a California appellate court overturned a lower court and certified their law suit against UPS as a class action.

At present there are four lawsuits filed against UPS by various store owner groups across the country based on the forced conversion of the successful MBE business model to the failed UPS Store model. If successful, the end result could be the undoing of this conversion of approximately 3,400 UPS Store franchise locations.

“We know from speaking to other franchisees that are fighting UPS that this company will pull every bullying tactic in the book to put us out of business. They filed frivolous TRO’s (temporary restraining orders) for trademark violations in Federal Court. It is the kind of tactic often used by big business to drain the small businessperson of all their financial resources so they can’t obtain justice in the courts. Unable to face us in a fair court fight, they rely on dirty tricks. They are totally indifferent to the pain and suffering that they have inflicted on their franchisees. Our lives are no more than collateral damage in their drive for more corporate profit,” stated PSA President Howard Spanier.

Waller remains hopeful, about her personal battle with cancer and about the potential legal victory over UPS. In the meantime she works long hours at her store and watches her two sons grow up; her older son is beginning to think about college and recently she took him to California State University - San Jose, to visit the campus and see where Waller attended college in the late 1970s.

“It was great seeing the school through his eyes,” she said, “and my greatest hope is to be able to afford to send my sons to college and see them graduate.”