July 12, 2007: The International Union has cited its agreement covering UPS Cartage Services Teamsters as a model for success at UPS Freight.

But, despite this enthusiasm and IBT Secretary-Treasurer Tom Keegel’s misstatement to the 2006 IBT Convention that UPS Cartage Services Teamsters had “secured the same wages and benefits as their UPS brothers and sisters,” Teamster standards and security in this part of the Brown Behemoth remain imperiled.

The August 2005 Addendum to the UPS National Master applies to UPS Teamsters in operations covered by local agreements with Menlo Forwarding (UPS acquired Menlo in Dec. 2004).

The August 2005 Addendum provided for 3 percent annual wage increases when local agreements expire. Some of the locally-bargained rates were very substandard, so there are former Menlo Teamsters working for UPS at substandard wage and benefit rates.

The bulk of the organizing that resulted from the August 2005 agreement brought in part-timers at the new heavy-weight hub in Louisville and five regional hubs that handle freight from shippers formally serviced by Menlo Forwarding.

A “Letter of Agreement” that was part of the August 2005 deal puts these part-timers directly into the regular UPS parcel ranks. The union delivered its high-turnover, low-wage part-time workforce.

Subcontracting Protection

The biggest hole in the August 2005 Addendum covering CSI Teamsters is the exclusion of these units from subcontracting protection. The Addendum bars these Teamsters from protection under Article 1, Section 1, 2, and 4, and Article 32 of the UPS national contract. UPS calls its Cartage Services unit a “vendor” that provides services to its nonunion carrier, UPS Supply Chain Solutions.

So, when the company moves new work through its nonunion carrier and has Teamster work done by nonunion subcontractors or nonunion UPS subsidiaries, the union has no recourse!

Early negotiations for a new supplement to replace the August 2005 Addendum have been conducted by the Union’s Cartage Negotiating Committee.

The “Brown Out” approach to early bargaining, keeping rank and file members on the sidelines, applies here as well.

But at UPS Cartage Services, this secretiveness hides a troubling disconnect. The company is preparing to integrate the operations of some of its subsidiaries including UPS Cartage Services, UPS Freight, UPS Freight Forwarding and UPS Supply Chain Solutions.

If IBT negotiators agree to a new supplement covering UPS Cartage Services Teamsters that does not address this future operational integration, these Teamsters could be rendered disposable.