300 Local Union Leaders Endorse Deal Covering UPS Package, Freight Workers

This story appears in the May 13 print edition of Transport Topics.

Union leaders of more than 300 Teamsters locals approved tentative contracts last week covering 250,000 UPS Inc. package and freight workers, who stand to receive pay raises, benefits enhancements and new on-the-job protection.

The union announced the approvals May 7, moving the process to the rank-and-file for a vote.

On the same date, the tentative agreements were released, spanning 55 pages for about 238,000 package workers and 46 pages of terms for 12,000 employees at UPS Freight. The union said the package contract is the nation’s largest collective bargaining agreement.

 “Our members made clear they wanted us to protect their health-care benefits and address harassment while increasing wages and retirement contributions,” said Ken Hall, general secretary-treasurer and package division director. “This is a strong tentative agreement that achieves all those things and more.”

UPS, based in Atlanta, declined to comment last week.

The package contract includes steps the union said will protect employees from harassment in multiple forms, including technological issues, retaliation and extended work schedules.

Two provisions relate to technology. One says a worker can’t be fired because of information obtained solely through GPS, unless the actions were intentional. Additionally, a worker can’t be disciplined when another worker uses an employee’s electronic device.

Package car drivers also will have the right to opt out of job assignments that exceed 9.5 hours after working three of those shifts in a week. Alternatively, the pact would make it easier for those who want to work more long shifts to do so.

Protection against retaliation also was increased, the union said.

Package wages will rise $3.90 per hour over the contract life, and starting full-time wages will increase 16% to $18.75 per hour. An additional 2,350 full-time jobs will be created.

Another provision specifies how package workers handle UPS SurePost shipments, which were created to move goods from Internet retailers to consumers through Postal Service delivery. The union said the contract assures that traditional package and SurePost deliveries to the same address are handled by union workers.

Health insurance is being shifted Jan. 1 to the Teamsters plan, with more immediate eligibility for part-timers to participate. Premiums won’t increase.

Pension benefits will increase $200 per month in January from the current $3,500 for those with 35 years’ service and $200 more in 2017.

The union also said it negotiated reductions in retiree health insurance costs that will be capped at levels 75% below the company’s initial proposal.

In the Freight contract, the union focused on limiting of subcontracting to nonunion operators.

The bargainers created a new line-haul driver position to create more round-trip work for drivers and limit subcontracting. Provisions for new full-time positions on the dock were added, as were opportunities for those whose daily runs were canceled to take other positions.

Wages would increase 50 cents per hour in January for five consecutive years.

Health-care premiums for UPS Freight workers will be reduced 10%, the union said, and retiree health-cost increases will be reduced.

The ratification plans call for ballots to be sent by the end of May, with the expectation that counting of ballots will begin around June 20.

The tentative deal was announced April 25, more than three months before the July 31 contract expiration. The union and the company said late last year when talks began that they wanted an early agreement to prevent diversion of shipments to competitors because of labor uncertainty.

Health insurance is being shifted Jan. 1 to the Teamsters plan, with more immediate eligibility for part-timers to participate. Premiums won’t increase.

Pension benefits will increase $200 per month in January from the current $3,500 for those with 35 years’ service and $200 more in 2017.

The union also said it negotiated reductions in retiree health insurance costs that will be capped at levels 75% below the company’s initial proposal.

In the Freight contract, the union focused on limiting of subcontracting to nonunion operators.

The bargainers created a new line-haul driver position to create more round-trip work for drivers and limit subcontracting. Provisions for new full-time positions on the dock were added, as were opportunities for those whose daily runs were canceled to take other positions.

Wages would increase 50 cents per hour in January for five consecutive years.

Health-care premiums for UPS Freight workers will be reduced 10%, the union said, and retiree health-cost increases will be reduced.

The ratification plans call for ballots to be sent by the end of May, with the expectation that counting of ballots will begin around June 20.

The tentative deal was announced April 25, more than three months before the July 31 contract expiration. The union and the company said late last year when talks began that they wanted an early agreement to prevent diversion of shipments to competitors because of labor uncertainty.