Teamsters reject UPS’ first economic counterproposal

Proposal involves minimal raises and effective wage cuts to COLAs, union charges

Teamsters ratify UPS contract. (Photo: Jim Allen/FreightWaves)
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Key Takeaways:

Call it a game of contract cat and mouse or not, but the Teamsters union strongly attacked UPS Inc.’s economic counterproposal as negotiations resumed in Washington to hammer out a new master contract.

The company’s counterproposal “included minimal raises and overall wage cuts to workers’ cost-of-living adjustments,” the union said Thursday. The Teamsters National Negotiating Committee unanimously rejected what the union called a “disrespectful” package.

The committee told UPS (NYSE: UPS) it will not meet again until the company makes a “realistic and respectful economic offer.” The union on Wednesday presented its initial economic proposal, which it called the “biggest, most lucrative financial proposal ever presented by a labor union.”

It includes wage increases for each year of the five-year contract, additional holidays and more paid time off, pension increases, and the end of a two-tier wage system that the union says penalizes those who lack seniority even though they are performing the same work as their senior counterparts.

“We are not accepting whatever crumbs these executives might throw our way. UPS has made plenty of money,” said Teamsters General Secretary Fred Zuckerman. “Our members have sacrificed everything to make them rich. We are demanding a real offer right now.”

“If UPS wants to negotiate a contract for 1997 working conditions,” said General President Sean M. O’Brien, referring to the year the Teamsters struck UPS for 15 days. “They’re going to get 1997 consequences.”

In a statement, UPS said that “as in any negotiations, reaching consensus on economic proposals requires serious and detailed discussion, as well as give-and-take from both sides. UPS is proud to provide the best pay and benefits package in the industry, and we plan to keep it that way. Both the Teamsters and UPS have publicly acknowledged the strong progress made to date, including the agreements reached on all non-economic topics. These negotiations affect our people, businesses and consumers across the country, which is a responsibility we take seriously.”

Earlier, the Teamsters had announced that it and UPS had agreed to 55 non-economic contractual issues.

46 Comments

  1. Tim

    Today Miyako Kline, UPS manager at Tukwila Center was screaming at an employee to wait 10 minutes until break to use the restroom. She also was yelling at another employee that they had to go faster cause she had to pay them $24 an hour. This type of harassment is a daily occurrence. The union, Local 174 is made aware but does nothing. Kline even brags that she talks to Ted Bunstien, her neighbor and Teamsters local 174 President, about employees behind their backs.

  2. Michael

    Progression needs to be only 2 yrs and everyone at ups should get the cola not just the topped out employees we all live in the same economy

  3. Manuel Ortiz

    We don’t need A/C in our package cars .. We need 3 fans in the cab and more fans in the truck to circulate air and that is where we spend the hottest time of our day.. Ups don’t make a bigger foot print on the Ozone with more Freon waste.. When you do as many stops as we do as drivers, there’s no way that car will cool.. And the UPS buildings need more exhaust fans and more fans where a pre-loader stands behind the trucks.. The sweatshops need to stay in China where they originated.. your preload high turnover rate is partially due to the fact that it is run like that.. going on 36 years at UPS and two strikes I feel like UPS has changed for the worse even the management team sees it.. but it all starts at the top the very top.. it’s always best to prepare for the worst, but hope for the best outcome

  4. Joe

    They say they want the 2 tier pay gone because they all do the same work. But like every company you get the people that bust their asses and the lazy who do half the work and getting more overtime!!! How about pay based on how well someone works??

  5. JC

    I applied and got accepted to work for the Secaucus NJ facility last year. The general manager told me to come in early every day to sort the truck on my time, and to use my lunch break to do the same so I wouldn’t “fall behind” from their expectations. I told HR and never received a callback. F UPS and their predatory company culture. While Brian and his ilk sit home scratching their testicles and clicking on their Macs looking at their inflated assets, real people are out here suffering heat strokes and being treated like animals.

  6. Jeffy

    3 short years ago the entire country was collecting $600 + regular unemployment our management team worked from home and got huge bonuses! UPS got tons of Covid money from government . What did we the teamsters ( working class of ups ) get? 6 days a week of work and non stop harassment! Absolutely no bonuses no time off no nothing except grueling hours! Now the company wants to give us 55 cents a year raise when they just raised their rates 25%? Get the f**k outta here!

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Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.