Apr 22, 2023, 3:15 AM PDT Labor leader Sean O'Brien, president of Teamsters labor union, speaks during the Labor Notes conference, in Chicago. The tough approach comes in the wake of the Covid pandemic e-commerce boom that fed a spike in UPS shipping volumes, generating high profits for the company and tougher working conditions for its employees, the union has said. Feb 13, 2023, 7:37 AM PST UPS's higher-paid, unionized workforce gave it an advantage during the pandemic. A series of work stoppages at ports in Southern California show that it is becoming increasingly difficult to keep the dockworkers reined in. The kick-off of this historic contract fight also coincides with the 25th anniversary of the successful 1997 UPS Teamsters strike, when 185,000 members struck the company. International Brotherhood of Teamsters on Twitter, International Brotherhood of Teamsters on Facebook, International Brotherhood of Teamsters on YouTube, International Brotherhood of Teamsters on Instagram, Justice For Sanitation Workers at Republic/Allied Waste, Virginia is For Lovers and Organized Labor. LOS ANGELES, April 17 (Reuters) - United Parcel Service (UPS.N) and the International Brotherhood of Teamsters union on Monday started U.S. private sector labor contract talks covering. The coming months will likely be rife with more friction back and forth. "Whether there is a strike of UPS workers is up to UPS," said a spokesperson for the Teamsters. Local 705 Agreement: the Local has not made their agreement publicly available. Let Supply Chain Dive's free newsletter keep you informed, straight from your inbox. The company is working to reach an agreement before the current contract expires at midnight on July 31, as a potential strike may prove costly for its business as UPS is already battling lower volumes due to slowing consumer spending amid elevated levels of inflation. FedEx announced layoffs in February, affecting management staff and not operations workers. O'Brien took the helm of the union in March 2022 with an ambitious agenda and a radical attitude relative to his more moderate predecessor, James Hoffa. That, however, was only the fig leafwhich they knew would never pass the Senate and structured the vote to make sure that its defeat there would not delay a strike banwhich the Democrats used to give themselves cover. It would also likely create headaches for FedEx and other last mile carriers as shippers attempt to divert their deliveries to alternatives. The carrier has been touting its employee benefits and long-standing relationship with the Teamsters. Reach out to senior reporter Emma Cosgrove at ecosgrove@insider.com. O'Brien told Insider the union. Copyright 1994 - 2023 United Parcel Service of America, Inc. All rights reserved. Teamsters General President Sean O'Brien will lead the union in negotiations for the first time. in contract negotiations with the Teamsters union, which represents . Subscribe to the Supply Chain Dive free daily newsletter, Subscribe to Supply Chain Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, This audio is auto-generated. Master Southern Region Addenda (M.S.R.A.) "I would submit that a win-win-win is very achievable because we are not far apart on the issues," Tom said on the company's February earnings call. Meanwhile, UPS workers are one of the most exploited workforces in the country, with two-thirds working part-time and starting out at as little as $15.50 an hour, comparable to or less than many fast-food restaurants. In the fourth quarter of 2022, UPS workers delivered a global average of 28 million packages per day, according to the company's website. Supplements and Riders to the UPS National Master Agreement, 2018-2023. No longer want to receive email updates? search field input Clear The Input. Teamsters' demands include better pay across the board, an end to forced overtime, elimination of a two-tier pay system, protection from hot weather and more full-time opportunities. The Teamsters publicly pledged to launch a strike if a satisfactory contract is not reached. We are one family, he said, promising to unite together the large numbers of part-time workers with the full-time drivers. Justin Sullivan via Getty Images Listen to the article 4 min UPS and FedEx rate increases are coming. Earlier this month, UPS began contract talks with Teamsters covering roughly 340,000 U.S. drivers, package handlers and loaders at the global delivery firm. The livelihoods of our members are at stake. A labor union representing 350,000 UPS workers could strike this summer if a new contract agreement isn't reached on time, threatening the delivery of millions of parcels. UPS negotiates in good faith and works constructively with the Teamsters. Alan Amling, distinguished fellow at the University of Tennessee's Global Supply Chain Institute and former VP of corporate strategy for UPS, said in an interview that he believes the two sides will ultimately come to an agreement, though it won't be easy. Work at UPS? Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. UPS CEO Carol Tom 's total compensation amounted to $19 million last year, down from $27.6 million in 2021. We will be in Washington, ready to reach agreement on all outstanding issues in our supplemental contracts. ," the spokesperson said via email. Teamsters General President Sean O'Brien will lead the union in negotiations for the first time. Its time to end excessive overtime, the two-tier wage 22.4 classification, subcontracting, driver-facing cameras and harassment along with securing higher pay for part-timers and more full-time jobs.. By clicking Sign Up, you also agree to marketing emails from both Insider and Morning Brew; and you accept Insiders. Copyright 1994 - 2023 United Parcel Service of America, Inc. All rights reserved. Throughout the pandemic weve worked six, seven days a week, and we are going to make sure we get what we deserve, said Sal Valenti, a UPS Teamster and New England negotiating committee member. Their contract expires July 31 and negotiations started this week in Washington, D.C. With the official start of contract talks at UPS less than two weeks away . Photo: GAELEN MORSE/REUTERS UPS and the Teamsters prepare for high-stakes talks with union contract set to expire Published Fri, Feb 3 202312:00 PM EST Rebecca Picciotto Share Key Points United Parcel Service in April. (PALMDALE, Calif.) - Amazon drivers and dispatchers voted unanimously to ratify their first union contract today, securing immediate safety protections and pay increases at the notoriously anti-worker company. UPS's higher-paid, unionized workforce gave it an advantage during the pandemic when competitors were forced to out-bid each other to contend with a labor crunch. He admitted this in a speech to the convention of the Brotherhood of Locomotive Engineers and Trainmen, which is part of the Teamsters, last October. A UPS spokesperson said the impact is not nationwide, and intended to respond to "uneven demand. The pandemic shipping boom has since eased, and UPS is now navigating how to stay profitable while volumes sag. The Biden administration, which is shoveling trillions to prop up the banks and to expand the war in Ukraine and prepare for a new one involving US troops in China, cannot stand by if more than 300,000 UPS workers walk out because it would threaten to spark a mass movement of the American working class similar to what is already happening in Britain, France, Sri Lanka and other countries where millions have taken to the streets. In addition to the rally this morning in Boston, Teamsters in California, New York, Texas, Florida, and at hundreds of other UPS facilities across the country kicked off the campaign and will continue to mobilize for the next 365 days to ensure members are informed and united. Close Menu Button. To update all other UPS email preferences or unsubscribe from UPS marketing emails, The union has been preparing to strike for months, but UPS CEO Carol Tom has said she wants a contract that's good for the Teamsters, UPS employees at large, and the company. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Negotiations for local contracts begin this month. Additional rallies will kick off nationwide as UPS Teamsters represented at 176 Teamster local unions fight for a more secure future. Tell us what your working conditions are like and what you are fighting for. Meanwhile, UPS reported record profits last year, generating USD 100 billion in revenue for the first time. With United Parcel Service's labor negotiations approaching, CEO Carol Tom sounded confident on this week's fourth-quarter earnings call that a "win-win-win" agreement would be reached before the end of July. Still, the carrier recognized the need to find the right balance between serving customers and meeting drivers' desired work hours. "Well either have a signed agreement that day or be hitting the pavement," OBrien said last year. "The screening of proposals will determine what will ultimately be put forth to the company when National Master Agreement negotiations begin," the release said. A UPS spokesperson said the company is shifting its capacity to respond to customer demand. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. "We wont extend negotiations by a single day.". Get this delivered to your inbox, and more info about our products and services. Sign up for free newsletters and get more CNBC delivered to your inbox. Got a tip? "There are some drivers who leave while their kids are sleeping and when they come back at night, the child is back in bed. The Teamsters began supplemental negotiations with UPS in January. The latest updates from our 2023 U.S. contract negotiations with the Teamsters UPS and the International Brotherhood of Teamsters (IBT) are negotiating a new National Master Agreement (NMA) for about 330,000 of our U.S. employees, as well as supplemental agreements that cover specific local areas of the country. UPS and FedEx are clawing back ground from smaller package-delivery firms. Please note, some images and video were taken prior to the pandemic. The current contract is set to expire July 31. There will be no concessions, said Local 25 President Tom Mari. UPS Teamsters are also covered under supplemental agreements, riders, and addendums specific to the regions in which they work. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The Teamsters and UPS have 12 weeks to come to terms before our contract expires, and UPS is not taking this seriously, said Teamsters General Secretary-Treasurer Fred Zuckerman. The Teamsters union has begun meetings to plan its upcoming contract negotiations with UPS. And I had to talk to a bunch of different people in the White House about what the potential is if theres a strike. UPS's contract with its drivers' union expires in July 2023. We will set the tone for organized labor and the entire country with this contract. to the National Master United Parcel Service Agreement. However, existing contract arrangements can make it difficult for many shippers to divert a large share of their volumes to other delivery providers, said Transportation Insight Chief Strategy Officer John Haber. When workers in many of the biggest unions voted to reject this deal, while the rail union bureaucrats stalled for time, Biden then went to Congress to request they pass legislation banning a strike and imposing his contract, which quickly passed along bipartisan lines, including with the support of Alexandria Ocasio-Cortez and two other members of the Democratic Socialists of America. International Brotherhood of Teamsters on Twitter, International Brotherhood of Teamsters on Facebook, International Brotherhood of Teamsters on YouTube, International Brotherhood of Teamsters on Instagram, Justice For Sanitation Workers at Republic/Allied Waste, Virginia is For Lovers and Organized Labor. (C.S.I.) In that speech, OBrien also arrogantly spoke out against rank-and-file opposition to the unions betrayals by instructing workers to keep their criticism at the dinner table. This was no doubt in reference to the Railroad Workers Rank-and-File Committee, which was playing the lead role in organizing opposition to betrayals of the union bureaucracy. Until then, there will be no negotiations on a national contract., After pulling in record-breaking revenue of more than $100 billion last year, UPS is delusional to think they can just ignore the workers who make them successful, OBrien said. General President-elect Sean O'Brien addressed members and talked about the . O'Brien, who will be the face of union negotiations this spring, had won his election for Teamsters general president in 2021 as a vocal critic of how the previous contract agreement went down. Section 4. UPS estimates that 56% of its profit will come in during the second half of the year on the bet that loosening Covid restrictions in China will help revive the company's international market. UPS Teamsters are also covered under supplemental agreements, riders, and addendums specific to the regions in which they work. ". Five screening subcommittees also met to review proposals on areas such as safety and health. Stay up to date with what you want to know. UPS Teamsters Rally for a Strong Contract with National Negotiations Set to Begin - International Brotherhood of Teamsters Press Releases UPS Teamsters Rally for a Strong Contract with National Negotiations Set to Begin 2023.04.03 340,000 UPS Teamsters Fight for Better Pay, More Full-time Jobs, Safety By clicking Sign Up, you also agree to marketing emails from both Insider and Morning Brew; and you accept Insiders. Deniz said the Teamsters are also looking to eliminate discrepancies in pay and other areas between full-time drivers and 22.4 combination drivers. Well either have a signed agreement that day or be hitting the pavement, OBrien said. It said, International Union staff should refrain from posting personal attacks against UPS leadership or employees on all social media platforms.. Teamsters president Sean O'Brien speaks at Boston rally, April 2, 2023 [Photo: International Brotherhood of Teamsters]. Learn more about thebargaining processand ourrelationship with the Teamsters. Our message to UPS is that its time our contract reflects the essential work of our members., Our members are ready to show the company that we are united at UPS, and the International will use every resource at our disposal to win the best contract in our history, said General Secretary-Treasurer Fred Zuckerman, who will visit UPS Teamsters in Traverse City, Mich. on Tuesday. OBrien knows this because he was in those meetings. Stay up to date with what you want to know. If that effort is unsuccessful, the Teamsters say they are ready to strike. Both sides aim to reach an agreement by the July 31 contract expiration. ", Despite the long list of union demands, Tom assured analysts on the Tuesday earnings call that the company and the Teamsters are "aligned. The division represents UPS package car drivers, air drivers, feeder drivers, part-time loaders, unloaders, sorters, clerks and mechanics. Out of 40 supplements to the national contract nationwide, 30 remain unresolved after repeated delays by UPS. For more information, call the Teamsters Organizing Department at 202-624-8718. There is no better organization to set that bar high than the International Brotherhood of Teamsters, OBrien said. He won election in late 2021 on a vow to get tougher with UPS and correct what he says was a flawed contract forced on workers in 2018 . Founded in 1903, the International Brotherhood of Teamsters represents 1.2 million hardworking people in the United States, Canada, and Puerto Rico. O'Brien wants more Teamsters members to benefit from their labor. To watch the full rally in Boston, go toibt.io/upsapril2rally. UPS has around 330,000 unionized employees who handle packages and drive delivery trucks. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Jeremy Hogan/SOPA Images/LightRocket via Getty Images. But to better increase the profitability of the company, the union bureaucracy helped to create these divisions within the workforce all the way back in the 1970s. UPS Teamsters delivered an unprecedented volume of packages during the pandemic for businesses to run smoothly and families to safely shelter at home, and still continue to work 10-12 hour shifts and under punishing conditions like extreme heat. UPS cruised through the pandemic Almost all businesses related. International Brotherhood of Teamsters on Twitter, International Brotherhood of Teamsters on Facebook, International Brotherhood of Teamsters on YouTube, International Brotherhood of Teamsters on Instagram, Justice For Sanitation Workers at Republic/Allied Waste, Virginia is For Lovers and Organized Labor. All sides are deeply nervous about the possibility of an intervention by the rank and file at UPS even more powerful than what occurred in the railroads. To update all other UPS email preferences or unsubscribe from UPS marketing emails, Rank-and-file members will be on the 2023 UPS contract negotiating committee. A UPS driver sits in his delivery truck on Jan. 31, 2023 in San Francisco, California. Strike benefits will now begin on day one. Access your favorite topics in a personalized feed while you're on the go. Talks focused on the supplemental agreements, which will continue into next week. We want to hear from you. "Last year, UPS met individually with drivers to better understand their unique preferences, and we are making adjustments where possible," the company said. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. We have clearly stated our intentions to UPS from the beginning that there would be no national negotiations until these regional contracts are completed. This prompted a rapid response by RWU leader Ron Kaminkow a few days later in Jacobin, claiming that she was confused and that RWU never supported a strike ban. The current. How tensions between FedEx Ground and its contractors reached a boiling point, How the FMC plans to enforce the Ocean Shipping Reform Act in 2023, Amazon to slow fulfillment spend as it prioritizes regional model, UPS fights to keep strike-fearing shippers from fleeing, How Bed Bath & Beyond lost its suppliers trust and doomed itself, Ground parcel delivery costs reach record high as rate hikes take hold, The latest advances in warehouse automation, Inside the busy world of parcel logistics. April 21, 2023: This week, UPS and the IBT met in Washington, D.C. Each gave opening presentations focused on their negotiations priorities and outlined key topics for discussion in the weeks ahead. Unsubscribe Here. Teamsters also want to eliminate the "22.4" employee classification, which refers to workers who often work full-time hours but are officially considered hybrid and, as a result, are paid less. The next UPS contract is expected to cover about 330,000 employees in a five-year deal. Keep up with the story. Bone up on the issues the Teamsters have threatened to strike over with the stories below. International Committee of the Fourth International. In a recent interview in Jacobin magazine, the de facto house organ of the DSA, Ocasio-Cortez justified her vote in favor of imposing the contract by claiming that she was advised to do so by Railroad Workers United (RWU), the TDUs sister organization in the rail industry. "There have been a lot of articles and headlines that might cause someone to question whether or not a win-win-win is achievable," Tom said Tuesday on the call, acknowledging talk of tougher negotiations. Topics covered: S&OP, inventory/demand planning, technology integration, DC/warehouse management, and more. Jeremy Hogan/SOPA Images/LightRocket via Getty. Now it's making them stronger. UPS National Master Agreement, 2018 - 2023 In 1997, 185,000 UPS Teamsters halted deliveries for more than two weeks before a new contract agreement was reached. When they finally decide to bargain in a professional and serious manner, the Teamsters will be here, ready to go.. All Rights Reserved. Full- and part-time UPS Teamsters are united for a contract that guarantees better pay for all workers, more full-time job opportunities, an end to corporate harassment and forced overtime, elimination of a two-tier wage system, and protection from heat and other workplace hazards. We are focused on reaching agreements that provide wins for our employees, the union, UPS and our customers. Our union is resolved to win the best contract for UPS members and to reset the standards for wages and benefits in this industry by August 1, 2023. The affected position, according to the union, is the "22.4" driver, named for the section of the contract that created the position. ", "With just a few tweaks to our existing contract," she said, "we can work this out.". Topics covered: last mile, shipper-carrier relations, and trends in rail, ocean, air, truck, and parcel shipping. Blue | Bloomberg | Getty Images. On August 1, if we dont have the contract you deserve, there will be no UPS Teamsters working, Zuckerman said. But the rejection of the rail contract last year amid a rebellion by the rank and file prompted Washington to intervene nakedly, showing that this strategy is being seriously challenged. United Parcel Service (UPS) driver pushes a dolly of packages towards a delivery van on a street in New York. Average years of employment by full-time delivery drivers, Approximate number of new Teamsters-represented jobs from August 2018 February 2022 a 25% increase. All submissions will remain anonymous. OBrien barely raised a peep about this attack by the capitalist state on the fundamental democratic rights of Teamster members. Please let us know if you have, Parcel market share in the U.S. by volume, according to Pitney Bowes, WarehouseQuote Launches Q2 2023 WPI Report, Eastern Propane & Oil Selects Descartes Last Mile Delivery Solution, Descartes Expands IoT Network for Air Shipment and Asset Tracking, and Condition Monitoring, Descartes Releases April Global Shipping Report: March Volumes at Top West Coast Ports Increas, By signing up to receive our newsletter, you agree to our. The Teamsters' UPS contract is the largest private sector collective bargaining agreement in North America, covering 340,000 workers in 176 union locals across the country. Now that package volume has slowed from pandemic highs, many logistics companies are re-evaluating the size of their workforce. The current five-year agreement expires July 31, 2023. Sign up for notifications from Insider! "[The Teamsters] should've went back to the table or struck the employer," O'Brien said of the agreement in a candidate debate prior to his victory. See here for a complete list of exchanges and delays. On Saturday, April 15, Teamsters General President Sean OBrien, UPS Teamsters, addressed a parking lot rally at Local 952 in Orange, California. UPS workers must prepare themselves for a battle not only against management, but against the White House and the pro-company union bureaucrats. UPS-rival FedEx contracts with small delivery businesses for its largest Ground delivery service and therefore can downsize its workforce more easily. Victor J. The carriers sprawling delivery network will be at risk unless a deal is reached by July 31. But as UPS tries to rein in costs, the question of higher wages and other labor investments still lingers. A strike could do substantial damage to UPS operations, and create problems for businesses and consumers alike. Teamster members at UPS have begun a nationwide call to action today with parking lot rallies, leafletting actions and other activities taking place at UPS centers throughout the country. Taking these steps now helps us to be a stronger company for our employees and our customers," they continued. Jack Dorsey is taking another whack at a Twitter-like service with a new social media platform called Bluesky. Sign up for notifications from Insider! 70% U.S. UPS employees represented by unions ~350,000 Teamsters-represented employees 15 Average years of employment by full-time delivery drivers 72,000 Approximate number of new Teamsters-represented jobs from August 2018 - February 2022 - a 25% increase UPS had already forecast last year that its 2023 profit margin would be tighter after it reported a record profit in 2022. . A strike would create large-scale disruptions in the company's network. Is Retail Finally Ready to Deliver on Omnichannel? "UPS told our members they were . UPS is beginning to lay off some weekend drivers, according to two local chapters of the International Brotherhood of Teamsters union, which represents drivers and package handlers at the company. The upcoming UPS contract is expected to cover approximately 330,000 employees in a five-year deal that will extend through 2028. UPS Agreements, 2018-2023 Gig labor could have challenged FedEx and UPS. Indeed, his gangster-like references to the Boston way and street fights in the weekends speech served as apt descriptions of the type of response meted out to his opponents when he was head of Joint Council 10 in New England. At the bargaining table, the Teamsters are looking to secure higher wages, more manageable work shifts and improved safety conditions. United Parcel Service in April will start to negotiate a new national union contract, with the current one set to expire on July 31. VisitTeamster.orgfor more information. "We have to maintain this unity" A number of Democratic politicians, such as Katie Porter, and other AFL-CIO regional bureaucrats were paraded at the rally to pledge their meaningless solidarity with the workers. The current five-year agreement expires July 31, 2023.