The International Brotherhood of Teamsters announced on Friday that United Parcel Service (UPS) union employees have overwhelmingly voted to authorize a strike if contract talks fail after the current agreement expires on July 31. This is a standard practice in union contract campaigns, giving the union representing about 340,000 UPS workers leverage in negotiations. The vote comes amidst relatively friendly talks, as the new Teamsters general president, Sean O’Brien, strives to secure a UPS deal that shares the company’s pandemic profits with workers and attracts new members, including Amazon warehouse staff.
Despite the strike authorization vote, UPS remains confident that an agreement will be reached that benefits all parties involved. The company clarified that the results do not mean an imminent strike and will not affect its current business operations. While the company and the union have already agreed on certain issues such as adding air conditioning to new delivery trucks, discussions on wages, a crucial matter, are still ongoing. In April, the Teamsters organized a rally at United Parcel Service to address their concerns.
Jeremy Tancredi, a former UPS manager turned industry consultant, explained that the strike authorization vote is a routine step for the union to ensure a prompt response in case of an impasse after the contract expires. However, Tancredi believes that the Teamsters will be successful in negotiating a substantial raise without having to resort to a work stoppage. He emphasized that there is enough funding available for the increase and that it will not be excessive or burdensome for UPS. Tancredi, who is a partner at consultancy firm West Monroe, highlighted the interdependence between the Teamsters and UPS as a factor that reduces the risk of a strike. UPS management positions Teamster professionalism and teamwork as a competitive advantage over rivals, and with UPS being the largest employer of the Teamsters during a period when union membership growth is challenging, the two entities have a symbiotic relationship.
While UPS and the union have already reached agreements on certain matters like installing air conditioning in new delivery trucks, negotiations are still ongoing regarding wages. Employees have informed Reuters that Teamsters members are united and ready to stop working if UPS refuses to provide raises that reflect the risks they took and the time they devoted to managing the surge in COVID-19 related cargo, as well as their value to the company. Rikki Schreiner, a full-time UPS employee in Eagan, Minnesota, shared that they worked under intense conditions, similar to Christmas hours, for two consecutive years during the pandemic due to the surge in e-commerce. Schreiner also commented on UPS’s profitability compared to FedEx during the pandemic, highlighting that UPS drivers, who earn around $150,000 annually including base pay and benefits before overtime, deserve their compensation.
Following the announcement, UPS shares initially declined by 1.5% but later recovered to close down 0.2%.
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