In our last article related to the current UPS/Teamster- Contract negotiations, we reported that there were some positive developments worth noting. One of the main items that we discussed was the fact that Satish Jindel, president of Ship Matrix Inc., had predicted 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. However, given the developments that have occurred within the last couple of weeks, we are wondering if Mr. Jindal will pull back on the statements he has made.
Over the past couple of weeks, we have seen Teamster Leadership continue to take an aggressive stance in their approach to these negotiations. First, the Teamsters held a rally at Teamsters Local 25 in Boston on April 2 as they prepare to begin national negotiations, which are scheduled to start on April 17th in Washington DC. Several Teamster leaders addressed the audience, including General President Sean M. O’Brien, and General Secretary-Treasurer Fred Zuckerman.
These leaders made some of the most aggressive statements that we have seen since they have started their campaign to negotiate a new and improved deal for the Teamsters. UPS Leadership, had indicated that that these negotiations will be “Loud and Late”. Well, this rally was extremely loud, and Teamster Leaders certainly turned up the volume as they attempted to rile the Teamster members that attended this rally.
“We will set the tone for organized labor and the entire country with this contract. There is no better organization to set that bar high than the International Brotherhood of Teamsters,” O’Brien said. “We are not going to accept and take what UPS gives us. UPS Teamsters have fire in their eyes and the intestinal fortitude to take on this company.”
Teamster leaders that spoke at this rally emphasized the need for Teamster membership to be united in this fight against the company. They stressed the fact that they will fight hard and are not willing to accept any concessions. Sean O’Brien emphasized that his leadership team intends to use these UPS/Teamster negotiations as an example to all companies, including Amazon, that they should not try to challenge the Teamsters.
“We are going to make history, we are going to make an example of a Fortune 500 company, so that when we go to the table locally, when we go to the table regionally, when we go to the table nationally, with any employer, they’re going to remember the beating that UPS took, and the leverage that we had, and they’re going to say, I don’t want any part of that.”
Also, in our last article, we reported that efforts to complete negotiations for the nearly 40 supplements and local riders that are part of the National Master Agreement have been challenging. Teamster leaders have vowed that they would not kick-off the National negotiations until agreements had been made on all of these supplemental agreements. There appears to have been little progress with these supplements since we reported this on April 6th.
The Teamsters have reported that only 10 of 40 supplements to the national contract have been resolved since those regional talks started in January. They are blaming UPS for these delays.
“We have clearly stated our intentions to UPS from the beginning that there would be no national negotiations until these regional contracts are completed,” Teamsters General President Sean O’Brien said in the statement.
UPS Leadership has responded to this concern with the following statement, which they listed on the UPS website on April 12th.
“UPS will be in Washington, D.C. next week ready to negotiate with the Teamsters on the National Master Agreement and the supplemental agreements.”
“Discussions around national negotiations and supplemental agreements often take place at the same time. We have bargained in good faith since the start and will continue to review and consider all proposals that are brought to the table.”
“We are committed to reaching an agreement that provides wins for our employees, the Teamsters, UPS and our customers. Taking care of our people and delivering for our customers is our top priority.”
The thing that is concerning with this situation is that UPS and the Teamsters can’t even seem to agree on how the negotiating process should work. The Teamsters are saying “No National discussions until the supplemental agreements are complete.” UPS Leadership is saying that they want to have the discussions in tandem, as they have in the past. This appears to be a major disconnect, and will not help with efforts to wrap these negotiations up early as predicted by the President of Ship Matrix, or in advance of the July 31st deadline.
It will be interesting to see how things develop in the coming days, and to see what actually happens on April 17th, as this could set the stage on what to expect as we get closer to the July 31st deadline. ICC Logistics will continue to stay close to this situation and provide our clients and followers with meaningful updates as they occur. Reach out to us if you have specific questions or concerns, we’re a phone call or email away.
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