UPS-Teamster contract negotiations

ICC Logistics Services is committed to keeping our clients and followers up to date with developments related to the upcoming UPS-Teamster contract negotiations. As reported in our previous articles on this topic, the agreement is due to expire on July 31, 2023, and Teamster Leadership has indicated that they will strike if they do not have a new agreement by this date. So, it is imperative that shippers stay close to this situation, due to the major impact it could have on their supply chains.

There have been a couple of interesting developments in the news regarding the UPS Teamsters negotiations since our last article on March 7th, 2023. We have seen both positive and negative developments related to the situation. 

First on the positive side of things, Satish Jindel, president of Ship Matrix Inc., made the bold prediction that there will be an agreement between UPS and the Teamsters no later than June 30th, 2023. He has also publicly speculated that there is no chance that there will be a strike. Mr. Jindel does not claim to have any insider information, and is basing his predictions on “having lived through many contract cycles and knowing the current market dynamics to connect the dots and make a very credible forecast.”

Mr. Jindel has been known to make accurate forecasts in the past, as he was the first to report last year that Frederick W. Smith, founder of FedEx Corp., would step down as CEO after 50 years. So, apparently the accuracy and effectiveness of his crystal ball needs to be considered!

This prediction does align with UPS CEO Carol Tome’s position that the Agreement will be completed in advance of the expiration. She has indicated that both sides are close on key issues, despite all of the noise that has been seen in the media. Also, as reported in our last article on the topic, Ms. Tome has made comments related to her desire to take care of her people when addressing large UPS audiences. So, maybe Mr. Jindel is onto something here. 

However, Teamster publicity regarding the negotiations don’t appear to be as rosy.  UPS Teamsters work under nearly 40 supplements and local riders to the National Master contract, with different language on some key issues, from discipline to paid time off. UPS and the Teamsters have already kicked off negotiations for these Supplements and Riders. 

Teamster websites have reported that “The Teamsters’ supplemental negotiating committees are holding firm against UPS’s concessionary proposals.” They indicated that the Supplemental Committees continued to hold the line on issues ranging from the use of lower paid tier drivers, the use of Personal Vehicle drivers and other major areas of concern. 

The Teamsters stated that UPS negotiators were initially dragging their feet and failed to take bargaining seriously. They claim to have seen more movement when their supplemental committee chairs reminded UPS of the looming April 17 deadline (the date that the National Negotiations are scheduled to kick-off). 

The Teamster website also made the following statement:

“General President Sean M. O’Brien and General Secretary-Treasurer, Fred Zuckerman are making it clear to UPS that the company needs to make significantly more movement before national negotiations begin.”

Earlier this year, the UPS Management team had been communicating that the Teamster negotiations would be “Loud and Late” So, at least one of the predictions that they made is coming to fruition. Obviously the comments posted on the Teamster website have been “Loud”.  Also, one can say that the negotiations are “Late”, as the National negotiations are due to kick-off much later than they typically do. 

However, it is interesting that we are now starting to see speculation both inside and outside of UPS, that suggest that the negotiations will be completed in advance of the agreement expiration on July 31, 2023.  One could speculate that UPS and the Teamsters might agree on one very important thing- The longer that the negotiations drag on, the more packages and Teamster jobs UPS will lose. 

We have heard of more and more shippers moving volume away from UPS, and adding other carrier shipping options to protect themselves from a work stoppage or slow down. So, maybe both sides are beginning to feel the pressure. The combination of a slowing economy along with volume bleed due to customer anxiety could have a major impact on UPS as well as the Teamsters. So, hopefully the increased tension that this creates will lead to a creative breakthrough for the negotiations. 

Either way, it is imperative that shippers stay close to this situation to ensure that they are in a position to limit the impact to their businesses. ICC Logistics Services will continue to monitor this situation, and provide our clients and followers with meaningful updates as they occur.