UPS ‘Confident’ of Deal With 250,000 Teamsters

This story appears in the April 15 print edition of Transport Topics.

As contract negotiations resume this week, UPS Inc. remains “confident” that a new contract can be reached in advance of the scheduled July 31 expiration of the agreement that covers a total of 250,000 Teamster package and freight workers.

UPS spokesman Dan McMackin shared the company’s view on April 10 during a meeting with Transport Topics’ editorial staff, adding that health care continues to be a key issue in the talks. He declined to elaborate beyond stating the company’s general view of the talks.

Meanwhile, a yearlong negotiating saga ended last week with the April 9 announcement that International Longshoremen’s Association members ratified a contract with the United States Maritime Alliance, extending it through Sept. 30, 2018.

Separately, talks between the Teamsters union and ABF Freight System are continuing against an That date was extended late in March after the company reported progress in the talks. The union’s statement, also released March 28, described “slow progress” and said “significant issues” remain to be resolved.

The UPS negotiations are resuming after a two-week break and cover about 238,000 package company workers as well as 12,000 at the UPS Freight less-than-truckload business, whose drivers and dockworkers became Teamsters in 2008.

The union asked for the time to review what it said was a management plan to move all workers from a company health plan to a union health plan.

McMakin wouldn’t comment on the union’s report, citing the company’s policy of not conducting negotiations in the news media.

The union’s statement also said Teamsters were prepared to meet with management, “provided the company is prepared to reach an agreement acceptable to our members during those two weeks.”

Since the talks began in September, both sides have stressed their wish to complete talks well in advance of the current contract’s end.

Though the previous two contracts reached agreement in 2002 and 2007 without a work stoppage, the union struck UPS in 1997 and shippers moved packages to other carriers in anticipation of a disruption.

The union didn’t provide any comment on the UPS negotiations when asked by TT.

The package and freight contracts are separate. About 60% of the package workers are part-timers.

The company, which ranks No. 1 on Transport Topics Top 100 list of for-hire carriers in the United States and Canada, said before the talks began that the negotiations during the weeks beginning April 15 and 22 were meant to “work toward reaching a handshake agreement.”

That assessment was accompanied by the view that “significant progress has been made” on master and supplemental agreements.

The talks also include so-called riders that may affect a specific local, region or type of work. The master, supplemental and rider talks are simultaneous.

“We want a good contract that rewards our employees and allows us the necessary flexibilities to remain competitive in the marketplace,” the company’s Web posting states. “We’re confident we can reach that goal.”

In the port talks, ILA members ratified the agreement by a 7-to-1 margin. It calls for a $3 wage increase over the life of the contract and a faster path to top pay levels, and it addresses issues such as chassis maintenance and technology.

ABF and the Teamsters haven’t discussed specifics of negotiations. The company said before talks began that ABF’s industry-highest costs needed to be reduced or the company would have to close facilities.

ABF’s parent Arkansas Best Corp. ranks No. 13 on the for-hire TT 100.