Another UPS Contract Loophole Exposed

May 21, 2014: UPS made $4.5 billion in profits last year. So why will some package car drivers make less than new hires under the new contract?

Before UPS contract negotiations, Ken Hall promised, “The more they make, the more we take.” So why will some UPS drivers make less than new hires under the new contract?

Starting pay under the new contract was raised for package drivers to $18.75 an hour. But incredibly, Hall is allowing UPS to continue to pay a lower rate to more senior drivers who were making less under the old contract.

Depending on where they fall in the progression, package car drivers will make 30¢ an hour less than drivers hired a year or more after them thanks to this pro-company loophole in the new contract.

New Package Drivers get screwed under the contract too. It now takes four years to get to top pay, instead of three. 

Before the contract, Hall vowed, “We’re not going to be talking about concessions, we’re going to be talking about improvements.” But actions and results speak louder than words and promises.

The pay rate for Package Drivers who were in the progression as of last August 1 is spelled out in this chart from the IBT.   


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