Potential UPS Strike (Agreement Reached. Members Will Vote from Aug. 3-22)

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There are over 340,000 UPS workers willing to walk on August 1st. Negotiations broke down over the weekend and the Teamsters are ready to walk. Articles and statements from different media and from UPS and the Teamsters below:




Teamsters, UPS end negotiations as strike looms
Published: July 5, 2023 at 9:35 AM

Doug Cunningham

July 5 (UPI) -- UPS and the International Brotherhood of Teamsters were at odds over contract negotiations Wednesday after agreeing to avert a strike heading into the weekend.

The Teamsters said Wednesday that UPS has walked away from the bargaining table after presenting an unacceptable labor contract offer to the union that did not address members' needs, while UPS urged acceptance of its Friday offer.

The union said UPS also refused to give a last, best and final offer but instead told the Teamsters the company had nothing more to give.

"This multibillion-dollar corporation has plenty to give American workers -- they just don't want to," said Teamsters General President Sean M. O'Brien in a statement. "UPS had a choice to make, and they have clearly chosen to go down the wrong road."

UPS issued its own statement, placing the responsibility on the union.

"The Teamsters have stopped negotiating despite UPS's historic offer that builds on our industry-leading pay. We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table," the company said.

The current UPS Teamsters contract for 340,000 workers ends July 31. The Teamsters are clear about striking if no new contract agreement is in place by then.

On Friday the Teamsters said they would continue negotiations after UPS offered a revised counterproposal with significant movement on wages, but the union said it wasn't enough for an agreement.

According to UPS's reported numbers, domestic profits were over $2.4 billion in the 4th quarter of 2022 with international operations yielding another $1.091 billion. For the first quarter of 2023 UPS made $2.6 billion in consolidated operating profit.

UPS 2022 revenue was $100.3 billion.

The Teamsters called a strike against UPS in 1997 that shut down operations for 15 days, and cost UPS hundreds of millions of dollars. A drop in shipments back then in anticipation of the strike cost UPS $5 million a day.

The Teamsters are seeking higher wages, an end to a two-tier wage system that pays some UPS Teamsters members less than others, and an increase in full-time jobs.

After the last UPS offer Friday, Los Angeles Teamsters part-time worker Cesar Castro said in a statement that workers were prepared to strike by Wednesday.

"We break our backs working for this company. UPS needs to recognize our sacrifices not just with empty words, calling us 'essential workers,' but by putting the pay, benefits, and protections we deserve into a contract. Every UPS Teamster expects this by July 5 or we will be ready to strike," said Castro.

UPS statement Wednesday urged the union to continue negotiations.

"Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy," the company said. "Only our non-union competitors benefit from the Teamsters' actions. We're proud of our offer. It delivers wins for our people. The Teamsters should return to the table to finalize this deal."
 

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In These Times


When the temperature hits three digits in the brown UPS truck Luis Rivera drives, he slows down his deliveries, which gets him in trouble, he says, with his boss.

“They say, ‘Why did you take so long?’ and I say, ‘Dude, it’s hot. I know when I need to take a break,” explains Rivera, a veteran delivery driver and Teamsters member in Central California, where heat waves are common.

Rivera ticks off the times that colleagues have gotten heatstroke and recalls the tragedy of a young UPS driver, 23-year-old Jose Cruz Rodriguez Jr., who died two years ago in Waco, Texas. His family alleges that the death was heat related and the Occupational Safety and Health Administration fined UPS $14,502 for that incident. The company is appealing.

Amid complaints from workers like Rivera, the Teamsters have repeatedly told the delivery giant that it must air condition its delivery vehicles, especially in climates where the heat can soar. But the company repeatedly pushed back.

“We always said we didn’t think that air conditioning was the solution for a variety of reasons,” says a UPS official, who spoke on condition of anonymit
y.

So when UPS agreed in contract talks in mid-June to begin air conditioning its delivery fleet, some considered it a sign that the union’s 340,000 UPS members and the world’s largest small package delivery service could find common ground, and that contract talks would not collapse into a costly — and potentially economically devastating — strike come the July 31 deadline.

But the mood has become more complicated as they dance through a series of feints and parries.

The Teamsters walked out of contract talks on Thursday, June 22, and vowed not to return to the bargaining table until the company makes a “realistic and respectful economic offer.” Leaked details of a UPS counter proposal — that were authenticated and posted by The Upsurge (a podcast co-sponsored by In These Times and The Real News Network) — indicate limited wage increases for part-timers and a lower starting tier of wages for new employees.

“Our committee & more importantly our members don’t have the patience for bullsh*t proposals like the one @UPS gave today. If this company wants to negotiate a contract for 1997 working conditions, they’re going to get 1997 consequences. #GetFckingReal” tweeted Teamsters General President Sean M. O’Brien.

When the union returned several days later, they said the company had not come up with a new package and they gave UPS a week to come up with a tentative agreement or a final offer.

Then, on June 28, O’Brien tweeted that “Despite the ‘play nice’ public persona, @UPS has ignored our demands at the table. They want to keep screwing our members while making billions off their backs. Not f*cking happening. We’re putting an end to the disrespect. You have 48 hours to provide the last, best, final offer.”

Come Friday, June 30, however, the union said UPS had made an offer with “significant” improvements on wage and economic issues and had agreed to reach a deal by July 5. (A UPS source, speaking on condition of anonymity, would not confirm whether or not they would stick to the July 5 deadline.)

“UPS came back with real movement, but it isn’t enough. After they left the room, our national committee had a long dialogue and the universal consensus was to continue our leverage campaign,” Teamsters General Secretary-Treasurer Fred Zuckerman said in a news release on June 30. “One of two things is going to happen next — UPS will come to terms on a deal we can confidently recommend to our members or UPS will fail and the company will put itself on the street.”

Zuckerman also noted that “thousands of UPS Teamsters are practice picketing right now across the country, showing UPS how serious we are about getting the best contract in our history.”

In similar fashion to its other upbeat replies to Teamsters negotiations’ actions, the company simply said in a news release that it was “encouraged the Teamsters are ready to continue negotiations and discuss our most recent proposal.”

Then, after movement at the negotiating table on Saturday, July 1, O’Brien tweeted that “Huge gains have been made today & proud of our team. But to be clear, we’re not across that goal line yet. #MoreWorkToDo”

In a video update about the negotiations posted on July 1, O’Brien talked about the importance of the July 5 deadline, saying that it was necessary to reach a deal by then so that Teamsters members across the country could have time to review the proposal, talk about it with their locals, and vote on the process.

Contract talks are always a drama built around facts and personalities, but this one is hyped more than most. It is almost a showdown of sorts for O’Brien and UPS. O’Brien has raised the stakes for a new five-year contract for his UPS members to a higher level, saying recently at meetings and a union webinar it can set “the tone for the entire labor movement across this country.”

“There is no better organization to set that bar high than the International Brotherhood of Teamsters,” he told a union meeting in April in Boston.

He might be right.

Overall, the negotiations between the union (with 1.2 million members) and UPS touch on hot button issues for the nation’s long-suffering unions and millions of workers.

Union officials say they basically want to sweep aside two-tier wages, turn more part-time jobs into full-time work, and let workers reap some of the hefty revenue UPS gained during the pandemic and afterwards. The company’s total revenues increased 35% between 2019 and 2022, and the union likes to advertise that the UPS CEO, Carol B. Tomé, is paid more in a day “than a UPS worker is paid in an entire year.” Her total compensation in 2022 was $18.9 million.

Amid the union’s bluster, UPS’s low-key mantra is that it is not angling for a fight, but just wants to be able to compete amid fierce competition.
 

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New YorkCNN —
A marathon negotiating session between UPS and the Teamsters union ended early Wednesday morning with both sides accusing the other of walking away from the table. There are no signs of a contract settlement in sight.

The current contract expires July 31, which means 340,000 UPS workers could go on strike August 1. The two sides had been trying to reach a deal to stop nervous UPS customers from starting to move their business to rival delivery services including the US Postal Service and nonunion FedEx.

Despite a strike deadline being almost four weeks away, some customers are likely to sign long-term deals with UPS competitors by the end of this week if there is not a tentative agreement between the two sides, said Satish Jindel, president of ShipMatrix, a software provider that works with parcel shippers. Many in the shipping community had been looking for a deal between UPS and the teamsters by the end of the July 4 holiday weekend, he said.

“This is a negative development,” he said about the lack of a deal. “If they don’t have a handshake this week, both UPS and Teamsters will pay a price.”

Jindel said that during that last strike at UPS in 1997, the company was able to recapture 90% of its business once the strike ended. He said it might be able to only recover 70% of its business in a strike this time because of a greater number of alternatives. FedEx did not have a lower-cost ground service in 1997, and the Postal Service was not set up to handle as many package deliveries. Amazon also has its own delivery service now.

“The clock is ticking faster now than it was last week,” he said.

The two sides had previously said there had been agreement on a large number of issues already, including UPS promising to start buying only air conditioned delivery vans, which currently do not have air conditioning, and to retrofit its existing fleet of 95,000 vehicles with some features to reduce the heat in the cargo area. The union said that beyond comfort, the high heat in the vans poses a safety risk for its members.

But the union said its negotiating committee has unanimously rejected the company’s most recent economic offer. It accused the company of breaking off talks.

“This multibillion-dollar corporation has plenty to give American workers — they just don’t want to,” said Teamsters President Sean O’Brien. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”

The company said it made a “historic offer” to the union that would be a win for the Teamster members at the company. It said it is willing to continue negotiations and called on the union to return to the table.

“We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table,” said the company’s statement. “Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the US economy. Only our non-union competitors benefit from the Teamsters’ actions.”

What’s on the table?

Neither side has publicly detailed the economic offer that UPS made or what the Teamsters are demanding. UPS said it has already agreed to one key union demand is to eliminate a two-tier wage scale that was put in place during the current five-year contract to help UPS expand its delivery service to six days a week, up from five days. Those now being paid at a lower pay scale would be converted to regular, full-time pay scale with a Tuesday to Saturday work schedule, the company said.

The union points to record profits that UPS recorded in recent years, which have nearly doubled during the five-year life of the current contract, from an adjusted net income of $6.3 billion in 2018 to $11.3 billion on that basis last year. The surge in online purchases that started during the height of the pandemic drove record package delivery volumes for UPS and other delivery services.

But UPS profit, revenue and volumes fell in the first quarter compared to a year earlier as the company warned it is seeing signs of a slowdown in the economy that could hit shipments.


The union says it wants the company to put forth its “best, last and final offer” so that it can take it to membership, but it said the company told union negotiators it had nothing more to offer.

UPS delivered 18.7 million domestic packages a day in the first three months of the year, and it will be difficult to move that volume on other carriers. About 6% of US gross domestic product, the broadest measure of its economic activity, moves on UPS trucks.
 

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Teamsters Statement:
(WASHINGTON) — Around 4 a.m., UPS walked away from the bargaining table after presenting an unacceptable offer to the Teamsters that did not address members’ needs. The UPS Teamsters National Negotiating Committee unanimously rejected the package.

Following marathon negotiations, UPS refused to give the Teamsters a last, best, and final offer, telling the union the company had nothing more to give.

“This multibillion-dollar corporation has plenty to give American workers — they just don’t want to,” said Teamsters General President Sean M. O’Brien. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”

The UPS Teamsters contract covering more than 340,000 full- and part-time workers expires July 31. No additional negotiations are scheduled.

The Teamsters have repeatedly made clear that UPS members will not work beyond the expiration of the current contract. In June, rank-and-file UPS Teamsters authorized a strike by an overwhelming 97 percent.

UPS statement
The Teamsters have stopped negotiating despite historic proposals that build on our industry-leading pay. We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table.

Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy. Only our non-union competitors benefit from the Teamsters’ actions.

We’re proud of what we’ve put forward in these negotiations, which deliver wins for our people. The Teamsters should return to the table to finalize this deal.
 

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Nice read about how the media portrays labor strife:


Over 340,000 workers at United Parcel Service (UPS) could launch the largest strike against a single company in US history this August, when their collective bargaining agreement expires.

The clock is ticking as the top package courier in the world, which has seen two straight years of record-breaking profits, considers whether it will hold much of the country’s logistics infrastructure hostage by refusing workers’ demands: raising the poverty pay of part-time warehouse workers, re-establishing “equal pay for equal work” among delivery drivers, and introducing extreme heat–related and other safety protections, among others.

National negotiations between UPS and the Teamsters union, which represents the workers, begin on April 17. At that point, we can expect to see media coverage start to trickle in, and eventually reach a fever pitch, should bargaining break down and the Teamsters call a strike—something union leadership has explicitly said they’re willing to do.

Corporate media will have an outsized hand in shaping the narrative of this unprecedented moment, which presents the broader labor movement a catalyst for revival. So, four months out from the end of the bargaining agreement and a potential strike, it’s worth asking: What should we expect from establishment reporting? What have we seen in the past, and what have we seen so far this time?

‘Strike averted’

One needn’t look far into history to find corporate media covering strikes, well… corporately.

Just last year, 115,000 railroad workers twice inched towards a strike, only for President Joe Biden and Congress to legislatively force a less-than-satisfactory labor contract on them, with media quick to relay their pro-corporate sympathies.

Outlets declared that the Senate “averted” (PBS, 12/1/22), “prevented” (USA Today, 12/2/22), or “headed off” a freight rail strike that was “looming” and would have been “crippling” (Fortune, 12/1/22). Such word choices depicted the potential work stoppage as a national catastrophe, threatened by greedy workers and courageously warded off by neutral arbiters.


But the “crisis averted” narrative obscures the class dynamics of strikes, and that in the case of the rail strike, Biden and Congress preemptively broke one on behalf of multi-billion-dollar corporations, and in violation of the workers’ right to withhold their labor.

‘An economic catastrophe’

In the run-up to the rail strike deadlines, news outlets sensationalized the potential economic damage that would be caused by a work stoppage.

Look no further than the clips, edited together by the Recount‘s Steve Morris, of CNN pundits and reporters warning audiences of an “expensive” “disruption” that would devastate our economy—only weeks before the holidays, no less! Meanwhile, every media outlet under the sun bleated ad nauseam the Association of American Railroads–generated fact that a strike would “cost $2 billion a day” (Fortune, 11/22/22; Newsweek, 11/21/22; CNBC, 9/8/22; AP, 9/8/22; Barron’s, 9/14/22).

It’s telling that no such vapors were stoked by railroad companies threatening limited service stoppages of their own–that is, illegal lockouts during negotiations.

We should expect a similar shadow to be cast on a strike at UPS, a company that transports about 6% of the country’s GDP, and unsurprisingly, may be the railroad companies’ largest customer. Already, we’re seeing forecasts of economic doom: Business Insider (2/1/23) warns that “a driver strike threatens to upend millions of deliveries,” Fortune (9/6/22) decries that the strike “could hurt virtually every American,” and Bloomberg (1/30/23) emphasizes that “the stakes are high for [UPS CEO Carol] Tomé and the US.”
 

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With few exceptions in the case of both UPS (Guardian, 9/5/22; New Yorker, 1/9/23; Jacobin, 2/21/23) and the railroads (Real News Network, 9/14/22; Lever, 11/29/22; Washington Post, 9/17/22), media overshadow the stakes for the workers—who, among other sacrifices, forgo much of their paychecks to hit the picket line—with hysterics about their disruption to the flow of capital.

In this framing, workers are holding hostage “the economy,” a nebulous phrase that serves only to identify the reader with corporations. Those businesses, stand-ins for everyday Americans, become helpless protagonists fighting selfish employees. In articles so patently anti-worker they could’ve been written by a McKinsey consultant, Fortune (9/6/22) and the Daily Mail (9/6/22) reported that a UPS strike could be on the horizon, “even though delivery drivers already earn upwards of $95,000 a year.” Secondary or absent in these pieces is the fact that the majority of the UPS workforce are not drivers, and many earn as little as $15.50 an hour in some locations.

While drivers’ top salaries and UPS’s spending “$270 million on safety for its workers” (Fortune, 9/6/22) made the cut, neither outlet found it relevant to mention that the corporation’s revenues surpassed $100 billion last year, and CEO Tomé took home $19 million in compensation.

Taking the side of capital

With this context, a readership might understand that indeed it is the corporations that are holding consumers and workers hostage during a strike; it is the corporations demonstrating their greed when they refuse, in the case of the rail companies, to give their workers even a single paid sick day. UPS, meanwhile, denies adequate protection from life-threatening heat in the warehouse or delivery truck.

In taking the side of capital, corporate media minimize the reality that the threat of a strike is the principal leverage workers have over their employers; that the gains strikes yield are not limited to one or a few shops, but have the potential to advance the working class as a whole, should they help raise standards across industries and inspire further labor activity; and that giving workers a raise even if they already make good money could be beneficial for all of us.

Readers should see over 340,000 UPS workers on strike—in every zip code in the country—not as a liability, but as a shot of adrenaline for labor militancy.When UPS workers struck the company in 1997, that gave the labor movement a potential catalyst for resurgence–and, therefore, the betterment of working-class lives and livelihoods.

And indeed, it is in 1997 where we may find a glimmer of hope for corporate media’s coverage of a strike.

Winning hearts and minds

Almost 26 years ago, the strike threat by the Teamsters was not considered credible by UPS management, nor by the media. But in an era of globalization and broad-based attack on pay and working conditions, UPS workers were fed up—and highly organized by their militant union.

On August 4, 1997, 185,000 hit the picket line for 15 days. At first, corporate media brushed off the workers, focusing more on the 80% of UPS shipments coming to a halt, and the $40 million daily cost to the company. But as Deepa Kumar tracked in her book, Outside the Box: Corporate Media, Globalization and the UPS Strike, the 1997 UPS strike demonstrated that anti-worker labor coverage is not a given.

By the second week of the strike, some mainstream outlets demonstrated a temporary tone-shift:

Some sections of the corporate media, such as the New York Times, the Washington Post and the ABC television network, began to acknowledge inequality and to discuss the problems of the US working class.
Then, when the Teamsters won nearly all their demands, with massive public support, media were forced to answer:

What could explain the new prolabor mood in American society and the concomitant failure of antiunion propaganda? In trying to address these questions, the corporate media had to admit, however grudgingly, that a rising tide had not lifted all boats; that is, the working classes had not shared in the promised fruit of globalization.
Coverage of a UPS strike in August may be susceptible to the same forces that brought corporate media to heel in 1997—that is, UPSers’ successful campaign to win the hearts and minds of both their customers and the wider public, and to lift the veil on “Big Brown.”

Today, unions are more popular than they have been in nearly six decades. UPS delivery drivers are in ever more contact with an ecommerce-addicted public. And fueled by the return of the “labor beat” in many newsrooms—which are undergoing a unionization wave themselves—the adversities of logistics workers at multi-billion-dollar corporations like Amazon and UPS are now more popularly known.

Without much questioning—and with, often, active support—from corporate media, economic inequality has only deepened since 1997. Workers across industries are beginning to understand that they can do something about it. And that means taking control of their own stories.
 

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One of the times I made mega overtime at FDX. I never thought Teamster President Ron Carey could pull it off and Shut 'em Down
Even though I wasn't union I come from a union family. My pop with the Dept of Sanitation (truck driver) and my sister with the bus company GBTA, similar to the MTA.

1997 United Parcel Service strike​


Wikipedia
https://en.wikipedia.org › wiki › 1997_United_Parcel_...


The United Parcel Service strike of 1997, led by International Brotherhood of Teamsters (IBT) President Ron Carey, started on August 4, 1997, and involved over 185,000 Teamsters (IBT members).[1] The strike effectively shut down United Parcel Service (UPS) operations for 15 days[2] and cost UPS hundreds of millions of dollars.[3] The strike was a victory for the union, resulting in a new contract that increased their wages, secured their existing benefits and gave increased job security.[4]

The strike effectively shut down United Parcel Service (UPS) operations for 15 days and cost UPS hundreds of millions of dollars.
 

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Two UPS workers talk about why they are willing to strike fi negotiations don't end positively:


W
ith the largest private sector labor contract in the United States set to expire at midnight on July 31, the eyes of the American labor movement are on United Parcel Services (UPS) and the nearly 350,000 Teamsters like us that work there. Talk is coming from all corners of a potential strike. International Brotherhood of Teamsters (IBT) general president Sean O’Brien made it clear on day one of his presidency: if UPS does not meet the demands of the Teamsters, picket lines will go up on August 1. If this happens, the strike will be one of the largest in American history.

As the contract expiration looms less than two months away, other workers across the economy are also standing up to demand more. From a wave of successful union elections at Starbucks, Trader Joe’s, and other retail stores, to walkouts from Amazon to Hollywood, American workers fighting for dignity and fair compensation through collective action have momentum on their side. In return, employers have intensified their union busting.

The UPS contract fight therefore comes at a pivotal moment for US labor. What happens here could shape the direction of the movement for years to come — not only because this contract covers several hundred thousand workers who move 6 percent of US GDP daily, but also because the issues at stake in this fight are representative of those faced by workers across the economy.

This contract fight is about two visions of work in the twenty-first century. One is promoted by workers: equal pay for equal work, dignity and autonomy on the job, and a stable work-life balance. The other is promoted by Wall Street: hypersurveillance, low pay, subcontracting, gig work, and “flexible” scheduling practices that hurt workers and benefit bosses.

Teamsters Fighting Decades of Decline​


At UPS, the first vision of work comes from rank-and-file Teamsters. As Alex Press and other labor journalists have detailed, the roots of this contract fight go back decades.

UPS was once a hallmark of secure union jobs. Now, 60 percent of the workforce is part-time, making around the minimum wage in many regions. Drivers in many locations are forced to work six days a week and up to fourteen hours a day in forced overtime. Managers follow drivers in personal vehicles and relentlessly harass workers to scare them into working faster. In 2018, former Teamsters president James P. Hoffa forced a contract upon members, despite a majority no vote, that kept part-time wages low and established the second-tier “22.4” driver position (named for the section of the contract that establishes the position), which resulted in new drivers making less money than existing drivers despite doing the same work, and giving them fewer overtime protections.

The rank and file responded to this onslaught by organizing through the reform caucus Teamsters for a Democratic Union (TDU) and fought concessions the whole way, building a movement in the process. TDU activists organized a “vote no” campaign in 2013 and again in 2018 against concessionary contracts. Then in 2021, TDU led the successful charge to elect a coalition slate of reformers to the union’s top leadership, on a platform of taking on employers like UPS more aggressively to reverse these concessions.

Now, UPS Teamsters are demanding a significant pay increase for part-timers to $25 an hour, the elimination of 22.4’s two-tier wages for package-car drivers, the end to forced sixth days of work, raising pension payouts for sixty thousand workers so they’re more equal across the country, no driver-facing cameras, more holidays, and an end to subcontracting and the use of gig workers.


The expectations of rank-and-file Teamsters are high. If the two-tier wage structure of drivers is not eliminated on day one of this contract, it is a strike issue. If part-time workers do not get a significant pay increase, it is a strike issue. If all workdays beyond the five-day workweek are not totally voluntary, it is a strike issue.
 

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Now, UPS Teamsters are demanding a significant pay increase for part-timers to $25 an hour, the elimination of 22.4’s two-tier wages for package-car drivers, the end to forced sixth days of work, raising pension payouts for sixty thousand workers so they’re more equal across the country, no driver-facing cameras, more holidays, and an end to subcontracting and the use of gig workers.

The expectations of rank-and-file Teamsters are high. If the two-tier wage structure of drivers is not eliminated on day one of this contract, it is a strike issue. If part-time workers do not get a significant pay increase, it is a strike issue. If all workdays beyond the five-day workweek are not totally voluntary, it is a strike issue.


Some of these demands are about regaining ground that was lost by past union administrations. For example, the two-tier driver wages were only implemented in the last contract under Hoffa Jr. But for many workers, especially those hired since the last contract, this is about fighting for more. They kept the economy running throughout the COVID-19 pandemic without a penny of hazard pay and watched UPS make record profits off their backs while working forced overtime. Of course they now want their fair share.

The widespread support of these demands through the union’s ranks and the willingness to fight for them point to a simple truth: the Teamsters rank and file will not accept a half-deal, trade-offs, or “sharing the burden” with UPS. Teamsters are demanding more.

UPS and Its Marching Orders​

The other vision of work comes from Wall Street, which is the real force that the Teamsters are fighting against at UPS. Seventy-two percent of UPS stocks are owned by Wall Street firms; the two largest shareholders are Vanguard Capital and BlackRock. These firms and others own and control most of the rest of our economy, meaning not just UPS but its main competitors, including FedEx and the railroads.

What does Wall Street want out of the UPS contract? Steady and massive profits.

From their perspective, UPS is one of the great success stories of the pandemic. From 2012 to 2019, UPS yearly profits ranged from $7.1 billion to $8.2 billion. In 2020, when the rest of the economy was suffering from the pandemic, UPS made over $8.7 billion in profits. In the years since, it reported the largest profits in its history: $13.1 billion in 2021 and $13.9 billion in 2022.

UPS will try to further increase these profits in the 2023 contract by asking for “flexibility” to schedule employees to work any of the seven days in a week, the installation of driver-facing cameras to further harass workers, and the continued use of gig workers to deliver packages.


The biggest impediment to Wall Street dictating terms for the entire logistics industry is the Teamsters’ UPS contract. Simply look to the competitors to see what corporations would do without an unionized counterforce at UPS: Amazon drivers paid nearly minimum wage and having their hours cut next week if they do not meet inhumane production standards this week; FedEx moving to eliminate all direct hires and switching to a 100 percent subcontractor model; workers forced to eke out a living in their cars, delivering packages, people, and food until enough money is made to pay off the car expenses and cover that month’s rent — if they’re lucky.

But Wall Street does not just want profits. They want power — hoarded for themselves and as far away from us as possible. They are constantly working to create the best possible economic conditions for profit-making, and there is no better condition for that than demobilizing and dividing the working class.

For that reason, far more important than any particular concession, Wall Street wants a deal at UPS without a strike, and they will be willing to give up a few of those concessions to get it.

A two-week strike could cost UPS approximately $3.2 billion. But more important, a strike at UPS would be the largest demonstration of working-class power seen in the post-COVID-19 economy. Every worker across the economy would learn that they have the power to win better conditions through the collective action of simply withholding their labor. That result is what Wall Street fears the most.

Unfortunately for UPS, the Teamsters will not be shaken. A strike authorization vote for UPS Teamsters is set to begin this week; IBT general president Sean O’Brien has urged all members to vote yes. TDU will work to ensure that the national negotiating committee receives the largest “yes” vote possible.

The UPS contract fight matters for the entire working class. If we want workers at Amazon, FedEx, and throughout the country to know that organizing a union leads to better pay and working conditions, greater control over their working lives, and opens the door to a better world, then there is no better opportunity to show what we mean than a strike victory against UPS and Wall Street this summer. A national, high-visibility strike led by a newly reformed union could point the way forward for many workers across the economy and reinvigorate the labor movement as a whole, by demonstrating that our collective power does not come from leaders at the bargaining table, but from the essential labor that rank-and-file workers perform to keep society running, and our power to withhold it.
 

mastermind

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Who Will Win?​

The contract fight at UPS started nearly a year ago. Last August, Teamsters had contract kickoff rallies around the country. In the fall, UPS workers around the country filled out contract surveys, affirming the popularity of ambitious demands. Over the winter, thousands of Teamsters stood at gates and in break rooms handing out contract unity pledge cards, to educate each other and build support for the major contract demands they are willing to strike over.

In the spring, they held contract action team trainings around the country to map their workplaces, select picket captains, and develop organizing plans to engage their coworkers. And in the last month, rank-and-file TDU activists began petitioning at dozens of UPS “barns” to demand the company accept a higher national pension plan and raise part-time pay to $25 an hour. They remain firm in their high expectations. They want to win the best contract in Teamster history, and they’ll be willing to hit the streets in a walkoff on August 1 to do it if they have to.

While UPS will do everything it can to negotiate a settlement before August 1, ultimately, the decision to strike will come down to the 340,000 UPS Teamsters who have fought concessions for decades and now have the wind at their backs. At the 2021 IBT Convention, TDU activists led the successful charge to end the hated rule that allowed Hoffa Jr to force the last contract on UPSers in 2018. Now a simple majority vote will rule on a contract vote.

Will a majority of UPS Teamsters even accept a tentative agreement without striking, given the immense power they know they have, the ground they need to recover, the public support they enjoy, and how much they have to gain? Thanks to decades-long reform efforts, that will be their decision to make.
 

DEAD7

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Profit margin can be defined as the percentage of revenue that a company retains as income after the deduction of expenses. UPS net profit margin as of March 31, 2023 is 10.9%.


:patrice:Yeah thats a bit too much, gonna need to concede a bit more...
 

hashmander

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i know it's hard to miss paychecks, but that's the only power they have or else they're gonna get fukked if they don't make it hurt for UPS. this isn't like '97., 2023 is a whole different beast when it comes to package deliveries. UPS needs to be delivering packages just as much (if not more so) as their drivers need paychecks.
 
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