UPS Wants to Divert Work To UPS Freight

If management gets its way in contract negotiations, UPS will soon be diverting packages to UPS Freight, the company's nonunion freight carrier.

Sources close to the negotiations have told Traffic World, a leading industry publication, that UPS is pushing for work rule changes that would allow them to move packages from its parcel to freight divisions.

Corporate consultants love the idea.

“It's nonunion. It would be more cost effective,” said one industry expert.

It would also destroy Teamster jobs.

Traffic World broke the story in a report called, “Union Trading Parcels? UPS, Teamsters negotiations could shift to talks about shifting small packages to UPS Freight.”

The Teamsters Union could easily put the issue to rest by saying clearly that we will never agree to such a concession. Instead, our union refused to comment for the story. This only fueled speculation that the Hoffa administration is considering the deal in exchange for the right to organize UPS Freight.

“That is one carrot that could be offered” sources familiar with the negotiations told Traffic World.

While pension talks have gotten the most attention, analysts say these work rule changes could have the bigger impact.

Analysts confirmed that “UPS has to have negotiations done quickly” because shippers “will not understand a protracted negotiations. They still remember the last strike.”

This gives us leverage. We should be using it to win the improvements Teamsters were promised under the "Best Contract Ever"—without new historic givebacks like the Central States pension grab or letting UPS take our work away and give it to UPS Freight.

Read the entire Traffic World report.

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