The International Brotherhood of Teamsters has announced that negotiations for a new contract with UPS have “collapsed,” raising the possibility of a large-scale strike next month. While there is still time to reach a new agreement before the current contract expires on July 31, the Teamsters had hoped to have a tentative deal in place by the end of the July 4 holiday. On Wednesday, the union accused UPS of refusing to present a “last, best, and final offer” by that deadline. In response, UPS claimed that the Teamsters had walked away from the bargaining table.
The negotiations between UPS and the union aim to establish pay, benefits, and work rules for hundreds of thousands of UPS drivers and workers, making it the largest private-sector union contract in the United States. The union has been pushing for significant gains at the bargaining table, with a recent strike authorization vote where 97% of participating members approved a strike if deemed necessary.
If a strike were to occur, it would be the largest ever at a single employer, given the Teamsters’ representation of approximately 330,000 UPS workers. The impact of such a strike would be felt broadly across the economy, affecting businesses and consumers who rely on UPS for package deliveries. The last work stoppage at UPS took place in 1997 and lasted just over two weeks.
Despite the absence of a final agreement, progress has been made in certain areas. The union and company have agreed to address heat-related hazards in delivery trucks by installing air conditioning in new vehicles starting next year. They have also reached a tentative agreement to end the controversial “two-tier” compensation system, which paid junior drivers less than senior drivers for the same work.
However, significant issues remain, including workers’ base pay. Last month, the Teamsters temporarily left the bargaining table after what they considered an unacceptable offer from UPS. They later returned following improvements in pay and other economic matters made by the company.
With a little over three weeks left until the current contract expires, the union has pledged that employees will not work beyond July 31, putting pressure on both sides to find a resolution.
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