UPS Teamsters Negotiations Begin

Let the Games Begin- Knives Out!

On January 3rd, 2023, we published an article that described the challenges that shippers will face this year due to the upcoming UPS/ Teamsters Contract negotiations, (the agreement expires on July 31st, 2023). Our article provided some history and insight regarding how shippers will experience anxiety and risk this year, due to the contentious relationship that has developed between the Teamsters and UPS. Our article suggested that these negotiations will be “Loud & Late”, and that there would be a great deal of saber rattling. Well it looks like the predictions that we made have come to fruition very quickly!

On January 9th, 2023, the Teamster Leadership team kicked off a National Screening Committee meeting in Washington, DC to review proposals for the National Master Agreement negotiations. The committee was tasked with reviewing more than 4,000 pages of national proposals submitted by locals to the Package Division. In total, the Division received more than 11,000 Master Agreement proposals.

There were some very fiery and aggressive statements made during this kick-off meeting; 

“We’re going into these negotiations with a clear message to UPS that we’re not going past August 1,” stated Teamster President, Sean O’Brien in his remarks to the committee. “We have to deal with 22.4s, PVDs, subcontracting, part-time wages and other issues that we’re taking a hard line on with the company.” 

General Secretary-Treasurer Fred Zuckerman stated that “Sean is going to pick a fight with this company, and that fight is to get the very best contract we can get for our members. This contract is going to be unlike the contracts of the past 25 years where UPS comes in and says they want a cost-neutral contract. It’s not going to be a cost-neutral contract. We’re going to take from them what our members deserve.” 

However, UPS CEO Carol B. Tomé, who will be sitting in on her first contract negotiation, has said she expects the agreement to yield mutual benefits. Which helps to solidify the fact that the two parties are approaching these negotiations with very different expectations. 

The teamsters have also publicly stated that they have amassed a $350 million strike fund and shortened the time it takes for members to receive a payout from eight days to one. President Sean O’Brien has stated that “That’s some pretty good leverage. So, obviously the Teamster leadership has remained consistent in their promises to take a hard stance against UPS with their new agreement.  

UPS leadership has not made many public statements about these negotiations up until this point. Besides the comments listed above, Carole Tome stated on the company’s July 26th earnings call, that “We’re going to leave the negotiations at the bargaining table,” according to a transcript from Sentieo. 

She has also suggested that UPS Teamsters already receive better compensation than the rest of the delivery workforce. 

“Our workforce is very different than a lot of the workforces that you hear in the media every day that are trying to be organized. They’re not paid the way that our Teamsters are paid. These are great jobs that we value very much,” she said.

Based on the way that UPS has handled communications related to UPS Teamster Contracts in the past, we don’t expect to see a lot of public statements being made by UPS Leadership as these negotiations progress. UPS has historically chosen to keep customers updated about labor negotiations through direct contact from their management team. Typically, these communications are strictly verbal, which makes it harder for shippers to share details of the negotiation process with others in their organization. So, this will only add to the anxiety that UPS customers will be facing during these negotiating sessions. 

So, given the expectation that Teamsters leadership will continue to threaten and publicize their fight with UPS, while UPS leadership will limit their public comments, it will be extremely important for shippers to develop ways to obtain accurate and up to date information about the progress of these negotiations. Therefore, the ICC Logistics Services team is committed to staying close to this situation to ensure that we provide the most accurate and up to date information possible.

We will utilize our long term experience, expertise, unique insight and resources to provide timely and meaningful updates to our customers and followers. Don’t hesitate to reach out to ICC Logistics for questions related to this, or for help with any of your other Logistics needs!