UPS Teamsters union employees pass strike action vote. What that means for you.
At midnight on July 31, the contract between UPS and Teamsters, the union representing UPS rank-and-file workers, will expire if an agreement is not reached between the two sides.
While the two entities have been in negotiations for months, they reached a tentative deal Tuesday night on one of the bargaining points.
In a national victory for the Teamsters and a step forward for UPS, the two agreed to secure air conditioning measures including air conditioning systems, new heat shields and fans for the company’s vehicle fleet.
"We have reached an agreement on heat safety with the Teamsters, which includes new measures that build on important actions rolled out to UPS employees in the spring, including new cooling gear and enhanced training,” said Jim Mayer, senior director of media relations at UPS. “We care deeply about our people, and their safety remains our top priority. Heat safety is no exception.”
According to a tweet from the Teamsters, this measure would go into effect on Jan. 1, 2024. A news release from UPS noted the heat safety measures tentatively agreed upon would impact approximately 95% of the company’s U.S. package delivery fleet.
"Today’s progress was a significant step towards a stronger new reality for so many workers and their families," Sean O’Brien, the general president of the International Brotherhood of Teamsters, said in a tweet.
In Louisville, the local Teamsters union also made moves Tuesday night. Teamsters Local 89 UPS members voted 99% in favor of authorizing strike action. A strike authorization vote does not necessarily mean a strike is imminent but is a way for a union to add pressure to a company and show a membership willingness to strike if negotiations are not met.
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“Tonight, our members sent a clear message to UPS that the Teamsters are united and ready to fight for what they deserve,” said Local 89 President Avral Thompson in a Facebook post. “If a [99%] strike authorization vote doesn’t motivate [CEO] Carol Tomé and her cronies at UPS to do the right thing and give our members the contract they deserve, then what happens in August [when the contract expires] is on them.”
Here’s what you need to know about the negotiations between UPS and the Teamsters and what it means for you.
Who are the Teamsters?
The Teamsters are an international union that represents freight drivers and warehouse workers that was established in 1903 to improve working conditions and the operations of the trade they represent.
In Louisville, Teamsters Local 89 represents roughly 10,000 UPS workers at UPS Worldport, the largest UPS Air hub globally, and at the Louisville Centennial Hub.
What do the Teamsters want from UPS?
According to Teamsters Local 89, the demands from the union include no more excessive overtime, no more two-tier pay, higher part-time pay, more full-time jobs, job security for feeders and package drivers, and video camera and harassment protection.
According to UPS, the company believes the union will bargain over job creation and opportunities, pay and benefits, paid time off, part-time jobs, two-tier drivers, overtime, personal vehicle drivers, heat safety, and vehicle cameras.
The contract is set to expire at midnight on July 31.
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What happens in Louisville if the Teamsters strike?
The last time the UPS Teamsters had a strike was in 1997. The 15-day strike by 185,000 workers “largely crippled the world's largest package delivery company,” according to a New York Times article from August 1997.
“The strike hobbled package deliveries around the nation, cutting UPS' volume to less than 10% of normal and nearly overloading the post office and Federal Express,” the New York Times reported during the strike.
Today, UPS is already experiencing a decline in average daily package volume which recently led the company to make an operational adjustment to its Worldport facility in Louisville. UPS saw roughly 1.2 million fewer packages on an average day in the first quarter of 2023 than it did in 2022. This represents a more than 5% decrease in average daily package volume and $137 million loss in revenue, according to quarterly filings.
In an economy dependent on the logistics and shipping industry, a union employee strike could have more drastic consequences than in 1997. Customers could see slower delivery of goods to households, higher prices on products and shipping, and it would result in yet another breakdown of the modern supply chain, according to the Associated Press.
If UPS were to strike, it would be the largest single-employer strike in U.S. history. In the metro area, about 10,000 UPS workers could potentially strike and the UPS Airlines pilots who are members of Independent Pilots Association union would support the picket line, just like in 1997.
While a strike threat continues to loom over the company, Mayer at UPS previously told The Courier Journal the company is confident an agreement will be reached with the Teamsters.
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What is the negotiating process?
The bargaining process started last August with the introduction of a contract campaign. Here are the steps and timeframe of contract negotiations:
Aug. 2022: Teamsters call to action and 25th anniversary of 1997 strike
Sept. 2022: Distribution of UPS contract surveys to Teamsters
Oct. 2022: Regional union meetings to discuss contract surveys
Nov. 2022: Proposal meetings begin for Teamsters locally and regionally
Dec. 2022: Teamsters review contract proposal language
Jan. to March 2023: UPS and Teamsters start to negotiate on more than 40 supplemental contracts that address geographic and local-specific topics
April-July 2023: UPS and Teamsters negotiate a Master Agreement contract on a range of topics including pay, benefits, work rules, seniority rights, grievance procedures, safety and more. During this time a strike authorization vote typically occurs
July 31, 2023, at midnight: The contract will expire. The Teamsters and UPS desire to meet a tentative agreement prior to expiration in order to start the ratification and implementation process of the contract
What happens if an agreement is not reached, and the contract expires?
Accept management proposals
Extend the contract expiration date with the joint agreement of the union and management
Declare an impasse and UPS is free to implement its final offer and the union can strike
Contact reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_
This article originally appeared on Louisville Courier Journal: UPS and Teamsters reach tentative agreement, union passes strike vote
