Franchisees Protest at UPS Shareholders Meeting

UPS Chairman Answers Franchisee Questions

Wilmington, Del. (Blue MauMau) - Fifty franchisees gathered from around the country to carry signs, banners and a message to the UPS shareholders' meeting in Delaware's Hotel DuPont last Thursday, May 10. The franchisees were members of various independent franchisee associations of UPS Store owners - Platinum Shield Association (PSA), Brown Shield Association, Brown Board Owners Association, and IAMCO. 

Their message? The UPS Store and associated Mail Boxes Etc. owners want change.

When asked why demonstrate, Mr. Howard Spanier, a PSA board member, explained, "We protest to send a message that if UPS does not resolve PSA and other franchisee groups’ complaints and litigation, they risk doing irreparable damage to the UPS brand image. We protest the deceptive way the company conducted and reported profitability results to Mail Boxes Etc. franchisees in order to induce these franchisees to convert to the UPS Store brand."

During the question and answer session for shareholders, Mr. Joe Wightman, a New York franchisee and UPS shareholder, had an opportunity to ask questions. He pressed United Parcel Service's CEO Mike Eskew on why UPS stores with their high failure rates were ignored in the annual report and the presentation to shareholders.

According to Mr. Wightman's account, Eskew replied that he "had checked the source for 'my report' that 60% of the UPS network is unprofitable and stated that my information was not accurate.  However, he did not say what his ‘source’ was." "He did not respond as to why the UPS franchise network is not mentioned in UPS reports or presentations."

Mr. Glenn Sturgis, PSA board member and UPS shareholder, then elucidated, "the 60% figure comes from UPS’ Franchise Advisory Council in its written report, which includes UPS/MBE management."

UPS' CEO mentioned that some franchisees can be blamed for the predicament they find themselves in.

Mr. Wightman replied, "For the record, I have been in business for 14 years and was Franchisee of the Year in 2002."

"Mr. Eskew did try to sow the seed of doubt in the minds of the audience by implying that not all franchisees are good at what they do, and thus could be the blame for their poor performance," he observed.

PSA expects to have its first jury trial in California Superior Court, Los Angeles, next year. Another UPS group of franchisees, the Brown Shield Association, recently filed a class action complaint in a California federal court. And all UPS franchisees are potential plaintiffs in a recently filed federal class action suit on the issue of UPS charging franchisees more for packages through corporate’s laser audit system, in which package dimensions and weight are checked a second time after they leave franchisee stores.