Teamsters push UPS for ‘its last, best, and final offer’ by June 30

The ongoing contentious negotiations between Atlanta-based global freight transportation and logistics services provider UPS and the International Brotherhood of Teamsters (IBT) hit another snag this week, with the Teamsters making it clear that UPS Teamsters employees prepared to go off the clock on July 31 if a new contract is not in place, coupled with the Teamsters saying today they want UPS to exchange “its last, best, and final offer no later than June 30.”

This follows a vote earlier this month, with 97% of UPS Teamsters members signing off on authorizing a strike, which IBT said gives the union “maximum leverage to win demands at the bargaining table.” The vote followed local unions representing UPS Teamsters conducting in-person voting for strike authorization earlier this month, as reported by LM.

The existing contract between UPS and its more than 340,000 UPS Teamster members is set to expire on July 31.

The Teamsters said that it gave UPS a one-week notice on Tuesday, June 27 to exchange a stronger economic proposal, adding that UPS ignored Teamsters leaders and employees, when negotiations resumed today.

“Despite the Teamsters having reached consensus on 55 non-economic issues with the company on June 19, UPS has continued to seek a cost-neutral contract during economic negotiations,” said a Teamsters statement. “The world’s largest delivery company that raked in more than $100 billion in revenue last year has made it clear to its union workforce that it has no desire to reward or respectfully compensate UPS Teamsters for their labor and sacrifice. During the past week, UPS returned an appalling counterproposal to the union’s financial package, offering miniscule raises and wage cuts to traditional cost-of-living adjustments.”

And Teamsters General President Sean M. O’Brien said that the largest single-employer strike in American history now appears inevitable.

“Executives at UPS, some of whom get tens of millions of dollars a year, do not care about the hundreds of thousands of American workers who make this company run,” he said. “They don’t care about our members’ families. UPS doesn’t want to pay up.”

In a statement, UPS said that it provided its initial economic proposal, and this week it followed with a significantly amended proposal to address key demands from the Teamsters.

“Reaching consensus requires time and serious, detailed discussion, but it also requires give-and-take from both sides,” said UPS. “We’re working around the clock to reach an agreement that strengthens our industry-leading pay and benefits ahead of the current contract’s expiration on August 1. We remain at the table ready to negotiate.”

As previously reported, when the Teamsters authorized its strike vote earlier this month, the Teamsters said that the UPS Teamsters National Master Agreement represents the largest private sector contract in North America. And it explained that its UPS Teamster members are working towards a new five-year agreement that guarantees higher wages, more full-time jobs, an end to forced overtime and harassment from management, elimination of a two-tier wage system, and protection from heat and other workplace hazards.

As for UPS, a company statement provided to LM said that the results of the Teamsters’ authorization vote do not mean a strike is imminent and do not impact the company’s business operations in any way.

“Authorization votes and approvals are normal steps in labor union negotiations,” said UPS. “We continue to make progress on key issues and remain confident that we will reach an agreement that provides wins for our employees, the Teamsters, our company and our customers.” 

Some of the items the UPS and the Teamsters have tentatively agreed to, as per a LinkedIn post by San Diego-based Shipware include:

• Restrictions on what SurePost packages can be handed off to the USPS, resulting in UPS delivering 40% to 50% more SurePost packages;
   
• Air conditioning, fans, and heat shields for trucks;
   
• A seat at the table regarding technology that could potentially threaten Teamsters jobs, such as drones and driverless vehicles;
   
• Drivers will not be forced to work over 60 hours a week;
   
• Driver-facing cameras cannot be used to collect data for disciplinary action;
  Provisions for breastfeeding at work;
   
• Allowances for break time and cell phone usage at work; and
   
• Additional health and safety provisions like creating a dog bite prevention program.

Shipware added that another topic that needs to be addressed is the elimination of the 22.4 two-class system. Junior drivers, or “22.4s”, put in the same work as senior drivers, according to the Teamsters, but for less pay. The 22.4 provision passed in 2018 despite 55% of Teamsters votes rejecting it.

An industry consultant told LM that it seems that UPS feels this potential strike is a very real possibility, but they are controlling the messaging to not insinuate fear amongst their customers.

“Carol Tome indicated ‘Our goal with the teamsters is win- win- win,’ while also mentioning they are ‘building contingency plans,’” he said. “To me, this means they are hoping for the best, but also planning for the worst (strike). Although the strike of 1997 occurred over 20 years ago, many shippers have not forgotten. Based on the current uncertainty within the industry, I believe UPS truly feels the pressure of this possible strike, but they are not trying to worry shippers in fear of many building their own contingencies in preparation.”