In some companies’ financial results in recent months, labor shortages have acted as a brake on earnings. Others in the same industry, not so much.
Consider FedEx and UPS. In the fiscal quarter ended in November, FedEx, which relies on armies of independent contractors, reported that labor shortages cost it $470 million.
UPS, with a unionized workforce and higher pay, has reaped an advantage from loyal, long-term employees on its payroll.
Its on-time delivery rates were higher than FedEx’s in the run-up to Christmas (97.1% vs. 91.2%, according to ShipMatrix). Its stock price is up 31% over the last year, versus 1.5% for FedEx.