To ensure our readers and followers have the most current information regarding the UPS/Teamster Labor Negotiations, we are providing some important developments this week following the article that we released on Monday, June 19, 2023. Given that there are only 38 days until the expiration of the current UPS/Teamsters contract, we felt that it was important to release this information immediately, and will continue to do so as these negotiations are on-going..
First, on Tuesday the Teamsters announced that they had reached a tentative agreement with UPS on ALLl non-economic issues. Their communication quoted Teamster’s General Secretary-Treasurer Fred Zuckerman as saying that “we have reached tentative agreement on well over 40 non-economic issues that affect all our members at UPS, and we did it as a team. The Teamsters haven’t sacrificed a single concession in these negotiations.”
This was good news for the overall negotiations. However, as stated in our last article, the most difficult issues now need to be addressed. Namely, the economic issues which include wages, benefits, and the Two-Tiered Driver classification system UPS currently employs.
Our article had predicted that the Teamsters wage and benefit proposal would likely be aggressive, given the stance they have taken related to recent UPS profitability. The Teamsters have been consistent in their messaging, stating that they are looking for their UPS members to share in the profits and success of the company.
Well, it looks like our prediction might have come true. On Wednesday, the Teamsters National Negotiating Committee shared its full economic package with UPS- calling it “…. The biggest, most lucrative financial proposal ever presented by a labor union.”
Although specifics were not shared, the Teamsters identified priorities as wage increases each year of the contract for everyone, catch-up raises for part-timers, additional holidays and more paid time off, pension increases, protection and enhancement of existing health and welfare benefits, the complete elimination of the two-tier 22.4 job classification for drivers, and more full time jobs created over the next five years.
As stated, there were no specific details provided related to the Teamsters demands. But, the statements made so far make it easy to speculate that the requested wage increases will be record breaking (as predicted in our last article). All in all, these demands will undoubtedly be extremely costly for UPS (and ultimately costly for all shippers).
Late on Thursday, the Teamsters communicated some startling news to their members. They stated that “UPS executives gave the Teamsters National Negotiating Committee an appalling economic counterproposal…” They suggested that the proposal included minimal raises and overall wage cuts to workers’ cost-of-living adjustments.
According to the communication, the Teamsters unanimously rejected the “disrespectful proposal.” It went on to say that “The Teamsters National Negotiating Committee told UPS they will not meet again until the company makes a realistic and respectful economic offer.”
Teamster General Secretary-Treasurer Fred Zuckerman made the following statement. “UPS is well aware that the ball is now in their court. We are not messing around here. If they want to see the Teamsters back at the bargaining table any time soon, UPS has got to get serious fast.” He went on to say that “The Teamsters are not trading for anything. And we are not accepting whatever crumbs these executives might throw our way. UPS has made plenty of money. Our members have sacrificed everything to make them rich. We are demanding a real offer right now.”
Teamsters General President Sean O’Brien provided an ominous warning, he said “… if UPS wants to negotiate a contract for 1997 working conditions, they’re going to get 1997 consequences.” (referencing the last time that the UPS-Teamsters went on strike).
So, it appears that our earlier statements related to the situation are quite accurate- THE TEAMSTERS AND UPS HAVE A LONG WAY TO GO WITH THESE NEGOTIATIONS.”
Given the fact that the Teamsters have held their position that they will not provide any concessions in these negotiations, it is hard to see how UPS will come out of this process unscathed. The Teamsters have consistently publicized the fact that they are ready to strike if they do not get what they want (and think they deserve).
So it appears that UPS might have its back up against the wall.
We will continue to closely monitor the situation, and report on major developments as they occur. So, stay tuned. It would also be wise to start looking at your budgets for 2024 and to start making plans for what could be the largest Transportation cost increases your companies have ever seen. The time is now to develop a strategy to help combat out of control shipping costs. We would love to be part of that strategy, so please don’t hesitate to reach out to us now so you are well positioned for next year.
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