M. Wolfe Labor Quotations

On the heels of a conservative start to the year, managers are feeling more comfortable putting their 2006 hiring plans in gear. ... lower unemployment rates and the growing demand for skilled labor in certain sectors such as health care, financial services and IT are strong indications that the economy is growing steadily.

Rising energy prices and interest rates may overshadow the optimism employees have in the labor market in the coming months. While we don't expect worker confidence to fall dramatically, we are likely to see a softening as people struggle with greater day-to-day financial strain.

We continue to believe that the president is under some pressure not to appear anti-labor, and thus will probably not intervene until sometime next week at the earliest, ... But despite his recent popularity with the Teamsters and the AFL-CIO, Bush will, in our view, most likely choose to protect the economy, which increasingly appears to be at risk the longer the port disruption continues.

We continue to believe that the President is under some pressure to not appear anti-labor, and thus will probably not intervene until some time next week at the earliest. But despite his recent popularity with the Teamsters and the AFL-CIO, Bush will, in our view, most likely choose to protect the economy, which appears to increasingly be at risk the longer the port disruption continues.

You wouldn't want to see much stronger employment growth without a big gain in the labor force.

Our sense is that the rejection was more a statement of employee sentiment in the airline industry rather than a statement regarding overall labor relations between UPS and the Teamsters. However, we believe UPS would want to put this contract to bed before focusing on the national Teamster contract.

Heading into the new year, across-the-board improvements are giving rise to a more hopeful workforce, consistent with a growing demand for skilled labor and increased financial confidence. Multiple signs indicate that improving expectations about the employment market will jump start 2006.