UPS Concedes to Make-or-Break Teamsters Demand
Glenn Taylor
Mon, July 3, 2023
UPS union workers scored a major victory in their labor battle that could get them closer to averting a strike on Aug. 1. The shipping giant agreed to end its two-tier wage system Saturday in its ongoing contract negotiations with the International Brotherhood of Teamsters, the union that represents more than 340,000 UPS workers.
Despite the triumph, the sometimes-acrimonious labor negotiations continue ahead of the current contract’s expiration of July 31. UPS has pledged to reach a contract agreement for covered workers by no later than July 5.
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The Teamsters were able to get two more big wins at the negotiating table, establishing Martin Luther King Day as a full holiday for the first time, and ending forced overtime on drivers’ days off.
“Gains made by the Teamsters at the national table with UPS today cannot be overstated. From the jump, UPS knew we demanded an end to forced overtime, the respect to take MLK Day as a real holiday, and the complete destruction of the unfair 22.4 wage system,” said Sean O’Brien, general president of the Teamsters, in a statement.
The 22.4 wage classification has been unpopular with union workers since it was established in 2018.
Under the current contract, UPS drivers are divided into the two separate tiers of full-time and hybrid drivers. Full-time drivers are called regular package car drivers (RPCD), work Monday through Friday and make roughly $42 in hourly wages, at least double that of the “22.4” hybrid drivers, who split their time between deliveries and working in the warehouses.
The Teamsters argue that UPS uses this tiered system to get lower-paid junior workers to deliver packages on weekends and cut delivery costs. The union alleges that these drivers are doing the same amount of work as higher-paid drivers who work on the weekdays, and should therefore earn the same pay and benefits.
Eliminating the classification moves the 22.4 drivers to full-time seniority status and adjusts their pay to the appropriate RPCD rate.
While O’Brien applauded these “critical” victories, he is not taking his eye off the ball, with negotiations from Sunday into Monday.
“Make no mistake—we are not done,” O’Brien said. “UPS knows we must reach full agreement on other economic issues, including higher wages, within the next few days. As we continue to reinforce, the #Teamsters demand that a historic new contract is in place by Aug. 1.”
On Sunday, the Teamsters also notched their final supplemental contract agreement with UPS, the 44th region-specific deal in total. Teamsters Local 710, representing 7,000 full- and part-time UPS employees in the Chicago area, reached a tentative agreement with UPS on a new five-year deal.
The tentative agreement was unanimously approved by the Local 710 UPS Bargaining Committee and resolves all non-economic issues for the local UPS membership. Economic issues are addressed under the ongoing national negotiations.
UPS reaches deal that lowers chances of nationwide Teamsters strike
Julia Mueller
Sun, July 2, 2023
United Parcel Service (UPS) Saturday reached a tentative deal with the International Brotherhood of Teamsters that would end a dual-wage system for delivery drivers in its next contract, the union announced, a win for the Teamsters that could lower the chances of a nationwide strike as negotiations continue.
“During a hard-fought day at the bargaining table, the #Teamsters reached [a] tentative agreement with @UPS on three major economic issues,” the union announced in a Twitter thread, “tearing down the 22.4 two-tier wage system, establishing Martin Luther King Day as a full holiday for the first time, and ending forced overtime on drivers’ days off.”
The Teamsters last week held off plans to strike to head back to the negotiating table after UPS offered a counterproposal to the union’s requests with regard to compensation and benefits before the current contract expires on July 31.
“The extraordinary gains, each of which have been key issues for #Teamsters throughout the yearlong contract campaign, came on the heels of an aggressive public warning from the Teamsters National Negotiating Committee that @UPS was running out of time to get a deal,” the Teamsters union said Saturday.
At the same time, general president Sean M. O’Brien stressed that there’s still work to be done to get a new contract in place by August 1.
“But make no mistake — we are not done. @UPS knows we must reach full agreement on other economic issues, including higher wages, within the next few days,” O’Brien said. Negotiations are set to continue Sunday in Washington, according to the union’s update.
The union, which comprises more than 300,000 workers, said Sunday that despite “major gains at the bargaining table, practice picketing actions will not let up.”
“#Teamsters are continuing to exert enormous pressure on @UPS to concede to the demands of the hardworking members who make the company its multibillion-dollar profits. And no one can doubt UPS Teamsters are ready to #strike if the delivery giant fails to meet those demands,” the union said.
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