May 1, 2008: Freight and UPS Teamsters don't even have copies of their new contracts. But that isn't stopping management from trying to use the new contract language to their advantage.

UPS has failed to comply with new rules on excessive overtime. Elsewhere the company is undermining full-time jobs with a new program to accept ground packages in drop boxes.

At UPS, the language in these cases is on our side. It’s up to our union to hold the company to its commitments under the contract.

The stakes are even higher in freight—and the language is much muddier.

Change of Operations

Freight employers are seizing on a new contract clause to restructure the industry and gut the rights of freight Teamsters.

If the employers have their way, hundreds of Teamsters will be forced to relocate and enter the new “utility employee” classification.

When the International Union sold the freight contract, they promised that current jobs would not be lost to the new utility employee language.

TDU warned that the language gave wide latitude to employers.

Now, Yellow, Roadway and Holland have proposed changes of operations that will put this language to the test for the first time and set a precedent for the future.

Hearing Is Opportunity to Secure Protections

At an upcoming hearing, the International Union has the power to approve, deny or modify the proposed Change of Operations.

This gives our union leverage to compel the corporation to negotiate reasonable written guidelines on utility employees.

Freight Teamsters were promised protections when they were voting on the contract.

The carriers and our union need to sit down and hammer out those protections now.

Working Teamsters live up to our contracts. Employers and our own International Union need to live up to their contract promises too.

Read more at:

• Roadway, Yellow, Holland Push Changes of Operation
• UPS Tries to Water Down 9.5 Language

May 1, 2008: Roadway, Yellow and Holland have all submitted changes of operations that mark the beginning of the new “utility driver” model. Hundreds of road and city jobs would be eliminated and converted to the utility employee classification. No doubt more will follow this initial change.

Each of the three changes establishes 12 “velocity centers” throughout the East, South, and Midwest aimed at reducing transit time for up to 25 percent of all shipments.

Reportedly, ABF will submit a utility employee change soon.

The hearings will be held in mid-May, where the union can approve, deny, or approve with modifications. The time to get reasonable protections for Teamster jobs is now.

No Restrictions?

Many Teamsters have reacted with anger, since the International Union sold the contract proposal by arguing this kind of change could not happen. The January 15 Teamster Freight Update states that: “The UE will handle next-day and second-day freight exclusively, in a designated part of the terminal.”

But now the carriers seem to want no restriction on what is UE freight.

“The UE will not replace ‘meet-and-turn’ runs or existing long haul turn runs.” But now this change would replace turn runs with UEs.

“The UE will not be used to replace or eliminate employees in the existing LTL operations.” But this change calls for many existing employees to move or take a layoff.

Other contract bulletins issued by the International Union repeated these same claims.

Unfortunately, the actual UE contract language in Article 3, Section 7 gives wide latitude to the employers. Now is the time, with the first of such changes, to get the language clarified in a way that gives some protection to Teamsters and local unions.

If the companies get complete freedom to designate any and all freight to be UE freight, any contract protections may be impossible to enforce.

Time to Push for Limits

Dock workers at breakbulks could be sitting at home while UE employees are working the dock. Locals could be played against one another.

What does it mean for foreign power courtesy, when road drivers may be in bed where UEs are dispatched to run into the road driver’s home terminal?

Without any limit on what is UE freight, in the future road drivers could be an endangered species.

There are many issues to address. It’s time for the union leadership to take a hard look at our ability to enforce the contract and protect jobs in the future. By sitting down the carriers now, and getting some written guidelines Teamsters can live with, we can go a long way to protect our members and contract, while allowing the carriers to implement their changes.

If YRC doesn’t want to negotiate reasonable guidelines, there is no reason to rush to approve their proposed changes. They’ve wanted to break down Teamster classifications for many years. They can wait another month if that is what it takes for our union to get reasonable guarantees that freight Teamsters need.

April 23, 2008: Trucking company Arkansas Best Corp. said Wednesday its first-quarter earnings soared 78 percent, as reigned-in costs and improved efficiency offset poor pricing and accelerating fuel costs.

Click here to read more at yahoo.com.

April 21, 2008: Roadway and Yellow both submitted changes of operations that mark the beginning of the new “utility driver” model.

Hundreds of road and city jobs would be eliminated and converted to the utility employee classification.

The hearings will be held in mid-May, where the union can approve, deny, or approve with modifications.

Many Teamsters have reacted with anger, since the International union sold the contract proposal by arguing this kind of change could not happen. The January 15 Teamster Freight Update states, “The UE [utility employee] will handle next-day and second-day freight exclusively, in a designated part of the terminal.”

But now the carriers seem to want to designate any freight to be UE freight.

“The UE will not replace ‘meet-and-turn’ runs or existing longhaul turn runs.” But now this change would replace turn runs with UEs.

“The UE will not be used to replace or eliminate employees in the existing LTL operations.” But this change calls for hundreds of existing employees to move or take a layoff.

Other contract bulletins issued by the International union repeat these same claims.

Unfortunately, the actual contract language gives wide latitude to the employers. Now is the time, in the first of many such changes, to get the language clarified in a way that gives some protection to Teamsters and local unions. If the companies get complete freedom to designate any and all freight to be UE, any contract protections will be impossible to enforce.

It’s time for the union leadership to take a hard look at our ability to enforce the contract and protect jobs in the future. By sitting down with the carriers now, and getting some written guidelines Teamsters can live with, we can go a long way to protect our members and contract.

If YRC doesn’t want to negotiate reasonable guidelines, there is no reason to rush to approve their proposed changes. They’ve wanted to break down Teamster classifications for many years. They can wait another month if that what it takes for our union to get the guarantees that we need.

Download the Change of Operations:

• Yellow Utility Employee Change of Operations
• Yellow Velocity Change of Operations
• Roadway Utility Employee Change of Operations
• Roadway Velocity Change of Operations
• USF Holland Change of Operations

What do you think our union should do to protect our jobs and standards? Click here to send a comment to TDU.

April 9, 2008: Members of International Brotherhood of Teamsters have ratified by an 89 percent majority a 64-month national UPS Freight agreement to cover an estimated 9,900 truck drivers and dockworkers at 136 terminals nationwide, the union announced April 7.

Voting took place March 29 through April 6 at about 80 union halls across the country, IBT said. Most of the voting took place April 5-6, with the final tabulations completed April 7, according Ken Hall, director of IBT's parcel division.

The new contract provides for a general wage increase of $4.35 per hour over term for full-time truck drivers and dockworkers, while maintaining previous health care benefits at no increased cost to employees, Hall said. The contract became effective April 7 and extends to July 31, 2013, he said.

"This ratification vote is overwhelming by anyone's standards. I am thrilled with this vote," Hall said.

"We believe this contract is good for our people, good for our customers, and good for the company," UPS Freight spokesman Ira Rosenfeld said April 7. "The ratification follows a smooth and orderly process that had no impact on the service levels to our customers, while fully respecting the rights of the employees to the union representation of their choice," Rosenfeld said.

Card-Check Organizing Moved Quickly

The new agreement is a first contract for most of the UPS Freight employees, Hall said, although the company and IBT last year negotiated a contract covering a 125-employee bargaining unit at a UPS Freight terminal in Indianapolis (196 DLR A-7, 10/11/07). The Indianapolis contract negotiated last remains in effect and separate from the newly negotiated agreement, the union said.

The Indianapolis agreement was announced shortly after the union and Atlanta-based UPS announced they had reached tentative agreement on the larger contract to cover nearly a quarter-million UPS package delivery employees (190 DLR A-1, 10/2/07). UPS Freight, formerly known as Overnite Transportation, is a subsidiary of UPS.

A "card-check" agreement between UPS Freight and IBT allowed the union to begin organizing the company quickly on a national scale in mid-January, Hall said (12 DLR A-7, 1/18/08). Under the agreement, bargaining units are recognized by the company once union organizers have collected authorization cards from more than 50 percent of employees in the bargaining unit, and after an independent arbitrator has certified the validity of the authorization cards.

Units representing about 9,900 UPS Freight employees had been certified as of April 4, Hall said. At the time the tentative agreement was approved by local union leaders in late March, IBT said some 9,600 employees had been organized through the card-check process at that point (59 DLR A-12, 3/27/08).

The union estimates that another 2,700 company employees working at other UPS Freight terminals are potentially organizable by the IBT, Hall said, and union organizers believe that most of these will choose to be represented by the Teamsters before the end of the year.

Wage Hikes Effective Twice Annually

The new contract provides for general wage increases for so-called "city drivers" totaling about $4.35 per hour over the term of the agreement. Prior to the new contract, city drivers earned about $21 per hour, according to a copy of the tentative agreement.

Under the contract, the city drivers will receive wage increases about 35 cents per hour in 2008, 70 cents per hour in 2009, 75 cents per hour in 2010, 80 cents per hour in 2011, 85 cents per hour in 2012, and 90 cents per hour in 2013.

In each year of the contract, except 2008, annual increases would go into effect in two intervals. One half of the annual increase will go into effect on Jan. 1, with the second half of the increase going into effect on July 1, according to the agreement. The 2008 increase of 35 cents per hour is payable July 1.

Similar wage increases will be provided to dockworkers who are employed on the terminal site itself, and to so-called "road drivers" involved in the long-haul transport of freight, Hall said. The wage rate of a full-time dockworker, for example, will rise from the previous $21.22 per hour to $25.10 per hour, or by $3.78 per hour, over the life of the contract. Road drivers will receive a the mileage rate increase of 11 cents per mile over the life of the contract, an amount intended to provide an equivalent income to the hourly wage increase that will be received by the road drivers, the union said.

The wage increases are very similar to those negotiated for the Indianapolis agreement, Hall said, but are modified to reflect the fact the Indianapolis agreement was ratified about six months before the new national agreement was ratified.

Health Care and Pension Provisions

The new contract establishes a new health care plan to provide coverage to IBT represented employees, Hall said. To be called the United Parcel Service Health & Welfare Package Select, the company self-insured plan will have benefits similar, or better than, benefits provided under the previous health care plan, he said.

Employees covered by the contract are required to make monthly contributions to the cost of the plan, he said. Employees will pay $50 per month for single coverage, $100 per month for couples coverage, and $150 per month for family coverage. These contribution levels will remain fixed for the life of the contract, Hall said.

Retirees who will receive health benefits under the plan will pay $250 per month for individual coverage and $500 per month for couples coverage.

The new health care plan will be an improvement for most covered employees, Hall said. He said that contribution levels have been rising in recent years by about 7 per cent per year, so union-represented employees will benefit immediately by contractual protections against further increases during the life of the contract. Furthermore, union-represented employees with full family coverage will see a decrease in their monthly payments of $83, from $233 to $150, he said.

Similarly, UPS Freight employees represented by IBT will be covered by a company-managed pension plan, known as UPS Pension Plan. Hall said the benefits are similar to those that were offered under the previous plan, and no contributions from the employees for this plan are required.

Contract Has National Coverage

Major cities where the union said it has collected enough authorization cards to qualify for certification are Atlanta, Baltimore, Chicago, Cincinnati, Cleveland, Dallas, Denver, Detroit, Houston, Indianapolis, Las Vegas, Los Angeles, Memphis, Tenn., Minneapolis, Phoenix, Pittsburgh, San Diego, St. Louis, and Washington, D.C.

Terminals in smaller cities where the union said it has collected enough authorization cards to qualify for certification are in the states of Alabama, Arizona, Arkansas, Colorado, Georgia, Florida, Kentucky, Maryland, Massachusetts, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas, Washington, West Virginia, Wisconsin, and others.

The contract expires July 31, 2013.

The IBT-UPS Freight Agreement may be accessed here.

April 7, 2008: Our union is now nearly 10,000 members strong at UPS Freight, as members voted this weekend to ratify a new contract that brings them into our union.

This vote comes after years of organizing at UPS Freight that had its ups and downs. Our whole union can be proud of our victory there.

These brothers and sisters are joining our ranks to ensure a better future for themselves and their families.

Five out of every six UPS Freight workers are now Teamsters. Now we have to finish the job and organize UPS Freight coast-to-coast and wall-to-wall.

Click here to download the new UPS Freight contract.

Are you a new UPS Freight Teamster or a UPS Freight worker?

Teamsters for a Democratic Union is a resource for all Teamster members. Click here to send TDU a question or a comment about our union or the new contract.

March 27, 2008: Before the new contract took effect, and with thousands of Teamsters still laid off, Yellow, Roadway and USF Holland started advertising for $14 per hour casuals. YRC management has made no secret of their intent to make use of the contract language that allows for the influx of part-time dock workers at the low rate.

With respect to laid off Teamsters, it’s important to check the language for your supplement. The Central States Local Cartage, Article 61, Section 1 states “…four (4) hour casuals may be used to supplement the regular workforce if all available regular employees at the applicable Employer facility are working or scheduled to work.”

March 27, 2008: As we go to press, the International Union has reached a tentative agreement for a national contract at UPS Freight. UPS Freight Teamsters will get to vote on the new contract, and they need to take a close look at the agreement and make an informed choice.

All Teamsters can be proud of the impressive organizing taking place at UPS Freight. These brothers and sisters are joining our ranks to ensure a better future for themselves and their families. That future will be determined first and foremost by the negotiated contract.

The Indianapolis contract has been in place now for some months. What improvements can be made on it? With our union now bargaining for over 9,000 (and growing) UPS Freight Teamsters, we’re a lot stronger than during the initial Indy bargaining.

Having a strong at UPS Freight is crucial for building a strong future for all freight Teamsters.

March 14, 2008: The UPS, freight and carhaul national contracts all have a Cost of Living Allowance (COLA) clause, to help protect against inflation eating away our wages. Teamsters are asking, with gas prices heading toward $4, will we get a COLA raise?

For UPS Teamsters the answer is No.

For freight Teamsters, the answer is apparently No.

For carhaulers, it is Maybe.

For DHL Teamsters, it is Yes, according to the proposed tentative agreement.

What’s up?

As prices for essentials like gas and milk go sky high, why no cost of living raise for UPS Teamsters? Because the UPS contract has language specifying no COLA for 2008. The next time any adjustment is possible is August 2009.

The freight contract language, as posted on the IBT website (Article 33), seems to indicate that Teamsters should get a COLA increase on April 1. However, other language received from the IBT states regarding COLA “No change except change dates to make effective in new agreement.” Apparently this language means No.

The proposed DHL tentative agreement states that COLA will be paid on April 1, 2008 (Article 21, Section 2 of proposed deal). We have calculated that it will be 16¢ per hour. Not enough to fill your tank, but certainly some help.

That same 16¢ is what freight Teamsters would have gotten this April 1, with language requiring it.

Carhaulers should get a COLA increase of 32¢ on June, assuming that the same clause in the existing contract is retained (the contract expires May 30) with a COLA pay out for this year. That remains to be bargained. Unfortunately Teamsters at Allied will get nothing, because of concessions signed last year.

Why twice as much for carhaul? Because the carhaul COLA formula pays exactly twice as much as the freight clause does. The mileage pay increase for carhaul (assuming the clause is in effect this year) will be 0.8¢ per running mile (1.6¢ per loaded mile).

The Devil in the Details

UPS and freight Teamsters get zero, DHL Teamsters get 16¢ (at least according to the language of the proposed deal), carhaulers will get 32¢ if the present clause is retained for this year.

This shows that when it comes to a cost of living clause, the details really count. Waiving the clause in this year of high inflation was costly to Teamsters.

Our national contracts have some protection against runaway inflation, but few local contracts do. It’s not an easy item to bargain with most employers. But with inflation heating up, it may be time to put it on the bargaining agenda wherever possible.

February 21, 2008: Conveniently at the end of the voting period for the NMFA, YRC announced the demise of 800 Teamster jobs with the closing of USF Holland and Reddaway terminals in the Southeast and Southwest.

Those Teamsters can apply for another YRC job and possibly get hired at 90 percent scale under the new contract. They don’t preserve their earned vacation time or other benefits.

CEO Bill Zollars predicts an upturn in profitability by the end of 2008, but there could be more consolidation in the YRC brands before then.

Press releases from the IBT always promise that they are “monitoring the situation” after it’s already gone down. We need a union strategy for addressing job protections at Holland, Roadway and Yellow and it’s pretty clear that the latest freight contract falls short on delivering that.