Your UPS-Teamsters Update

At the time we started writing this article, the official on-line Teamster countdown clock indicated that there were 61 Days, 9 hours, 32, minutes and 8 seconds until the UPS Teamster Contract expires. This seems like a very short period of time to hammer out an agreement since there are some contentious issues that have yet to be ironed out.  

Both UPS and the Teamsters have communicated internally and externally that they have made good progress on key issues. However, based on what we have seen and heard, there are still many impactful issues that have not been addressed or settled.  Here are the main issues that the Teamsters identified early on in the negotiations (detailed in the article that we released on April 19th, 2023)

1. 22.4 Drivers (two Tiered Driver structure that exists at UPS today. 22.4 Drivers receive less pay and benefits compared to regular drivers.) Teamsters are calling for an end to this. 
2. Wages– Teamster members are looking for improved wages, especially for Part Timers.
3. Excessive Overtime– the Teamsters are looking for a reduction in overtime that UPS Teamsters are forced to work. 
4. Inward Facing Camera’s/ Harassment– the Teamsters have opposed the use of technology by UPS that they consider to be an invasion of privacy. 
5. Workforce Investment– the Teamsters are pushing UPS to create more Full Time jobs for Part Time workers, and invest more in employee pension plans.
6. PVD’s- Personal Vehicle Drivers– the Teamsters are pushing for the elimination of these outside contractors which takeaway work from them.
7. Subcontracting- They are calling for a reduction/elimination of subcontractors for UPS Trailer moves.
8. Martin Luther King Day/ Juneteenth– the Teamsters are pushing to make these paid days off for their members.

As we expected, UPS Leadership has released few details regarding progress that has been made. On May 26th, “The UPS website stated, “We made good progress on key issues at the bargaining table this week. We reached agreement on several important issues for the Teamsters, our employees and UPS—including operating priorities, the use of technology and in-vehicle cameras—and advanced discussions on many other topics.”

Messaging from the Teamsters was similar. A communication to Teamster members on May 24th said that “Teamster committee members achieved tentative changes to the contract around language governing UPS’ implementation of invasive technology.” 

On May 26th, the Teamsters communicated their intent to push back on efforts by UPS to implement technology or automation that could impact Teamster jobs. An internal communication to members stated that “… our union will do everything in its power to make sure this corporation is not surveilling our members, not replacing package car drivers with drones and AV’s, and never disrespecting the sacrifices Teamsters and their families make with their labor to keep this company successful.” 

So based on information released from both sides, it is creating the appearance that the only major category that the two sides have made notable progress on is the use of technology/ surveillance cameras. We have not seen or heard anything about agreement on the most contentious issues including Wages, and the Two-Tiered Driver scenario, and outsourcing of work (PVD’s and Trailer Driver subcontracting). 

It appears that initial discussions regarding the outsourcing of work are not going well. On May 23rd, the Teamsters communicated to their members that “The Teamsters spent hours throughout the day repeatedly pushing back on attempts by UPS to maintain the status quo or weaken worker protections around its SurePost program.”

For those that are not familiar- UPS SurePost is a contractual service in which packages are picked up and moved through the UPS network, and then handed over to the USPS for delivery to the customer. So in essence, the final mile delivery is outsourced to the Post Office. This service is typically less costly than UPS Ground Service, and is used by Retailers/ E-Commerce companies as a cost effective way to ship packages. 

There is an Article in the UPS-Teamster National Master Agreement that outlines UPS’s eligibility to ship smaller packages of specific weight and size via USPS. 

So, obviously this service creates concern with the Teamsters, since they feel that it takes away union jobs. The Teamsters stated in their internal communication that “We will ensure that SurePost doesn’t hurt union work. We will make sure UPS is never allowed to unilaterally implement technology that diminishes Teamster jobs.” 

This Teamster communication suggests that the two sides are far apart regarding the outsourcing of work. UPS seems to be looking for more flexibility with the use of this service, while the Teamsters are looking to put more of these SurePost packages on union package cars.  So, one would expect that discussions related to the use of PVD’s and Trailer Driver subcontracting to be equally as challenging. 

Negotiations for wages should be extremely challenging as well. The Teamsters have been very vocal about the profits that UPS has seen in recent years. They have continually stressed the “Pandemic Profit” that UPS enjoyed ($26 Billion).  They informed their membership that “Tens of millions were given directly to the CEO, with millions more in lavish stock awards. $8.6 billion on stock buybacks alone in 2022, with billions set aside for this year.” 

So, the Teamsters are intent on “earning their fair share.” They are asking for higher wages, more union jobs, and a decrease in the use of technology that reduces the reliance on union labor. They have also stated that they are not willing to make any concessions in these negotiations.

This can only mean one thing for shippers, be prepared for costs to continue to climb!

On May 26th, The Teamsters did release a communication that created some hope that these negotiations could be concluded on-time. They stated that “Major progress has already been achieved at the bargaining table after fewer than 10 rounds in national negotiations. There’s a lot of road left to cover, but if there’s one thing Teamsters are damn good at, it’s getting to their destination.” 

In the meantime, the Teamsters countdown clock continues to tick-  Now at 61 Days, 7 hours, 33 minutes and 45 seconds- Tick, Tick Tick…….

Hopefully, the Teamsters route to their destination doesn’t include a multi-car pile-up (work stoppage)! Stay tuned for continued /meaningful updates to this situation. Or feel free to reach out to us directly to discuss this further, or to find out how to prepare for the potential for more record breaking carrier increases!