'Show Me the Money'

Teamsters attack ‘disrespectful’ UPS contract proposal.

It all comes down to the money. With summer here, negotiations between UPS and the Teamsters union are heating up and counting down to a July 31 deadline. Union president Sean O’Brien has vowed to take his 340,000 workers out on strike on August 1, in what would be the single largest strike against an employer in U.S. history, if their demands are not met.

Teamsters members voted by an overwhelming 97 percent to authorize a strike, despite being among the best-paid workers in the industry, with drivers’ starting salaries at $93,000 – although many UPS Teamsters jobs pay less.

“UPS has made plenty of money. Our members have sacrificed everything to make them rich,” said Teamsters general secretary Fred Zuckerman. “We are demanding a real offer right now.” After presenting their initial economic proposal, Teamsters negotiators responded to the UPS counter-offer by telling the company they would not meet again until UPS makes a “realistic and respectful economic proposal,” reported Freight Waves.

Big Brown reaped windfall profits during the pandemic, but business has slowed in recent months. With package volume and profit margins sharply down, UPS is cutting costs by reducing hours worked and closing regional processing facilities. Big Brown’s operating profit fell 22 percent to $2.5 billion in the first quarter, with a 20 percent year-over-year drop in volume for the China-to-U.S. corridor and Asia volume as a whole down 8.9 percent. The company’s U.S. domestic unit, which accounts for about two thirds of sales, saw parcel volume drop 5.4 percent, amid the package decline from pandemic highs, and profit margins were down 2.5 percent, reported Bloomberg.

Negotiators reached agreements on all 55 major non-economic issues before digging into the monetary aspects of the contract. UPS agreed to install air conditioning in all new delivery vehicles, to curb assigning work to subcontractors in employees are available, to provide 24 hours notice before a supervisor does a ride-along with a driver, and to not compel drivers to work more than 60 hours except by their choice.

In addition to higher wages, Teamsters seek to eliminate the two-tier system that pays newer workers less for the same job, enhancements to benefits and pensions, and conversion of part-time jobs to full time.

Another group of well-paid union members, longshore workers on the West Coast just secured a 32 percent salary increase over the life of a six-year contract, reported the Journal of Commerce. And the Teamsters negotiations with UPS, said the Washington Post, are a prelude to O’Brien’s longtime dream of organizing the roughly one million Amazon workers, in what would be an even bigger battle.

But for now, with UPS cancelling vacations and Teamsters vowing not to back down, the question is come August 1, who will be in the driver’s seat.