UPS Contract Talks Resume
January 7, 2013: UPS contract negotiations resume this week, Jan. 7-10 in Washington, D.C.
General Secretary-Treasurer Ken Hall, our union's chief negotiator with UPS, has issued a memorandum to local unions that he is "outraged" at UPS's letter threatening to increase retiree healthcare costs for Teamsters in the company plan.
Hall says the National Negotiating Committee is meeting and formulating a response.
Click here for a report on UPS's threat to raise retiree healthcare costs for some Teamsters.
Click here for TDU's summary of bargaining issues to date.
UPS Threatens Retiree Healthcare Hike
January 4, 2013: UPS management is flexing its muscles in bargaining. In late December they sent a notice threatening thousands of Teamster retirees in the company healthcare plan with drastic payment hikes.
UPS Teamsters need a pension increase, not a retiree healthcare hike.
Teamster retirees in the company health plan pay $50/month for individual or family coverage. But UPS is threatening to raise premiums to $247.50/month for individuals, $495 for spouse or dependent coverage, or $742.50 for family coverage.
These rates apply only to Teamster retirees in the Company plan. Many full-time UPS Teamster retirees are in Teamster plans.
The company plan cannot hike retiree healthcare costs until the contract expires in August. So why is the company sending out a notice now? It's a bargaining tactic, plain and simple.
As part of contract negotiations, the International Union and UPS will bargain over how much Teamster retirees in the company Health Plan will pay toward their healthcare.
The company doesn't really expect to impose the costs in its memo. By sending out a notice with inflated rates, the company is trying to soften up retirees and our negotiators to accept higher monthly premiums.
Management may want to hike monthly premiums to match what Teamster retirees in the Central States Health Plan pay: $200/month for individual coverage and $400 for spouse coverage. Central States has stated these rates will not go up over the life of the next contract.
UPS has pushed to get Teamsters into a company health plan, and they save millions because on average UPS has a younger work force than other Teamster companies. Now management wants to get the savings and also stick it to the retirees.
UPS made more than $4 billion in profits last year. They don't need to nickel and dime the Teamsters, including retirees, who built this company.
UPS Teamsters need a pension increase, not a retiree healthcare hike.
Click here to download a bulletin for UPS Teamsters.
Click here to read the company notice threatening retiree healthcare hikes.
UPS Contract Bargaining Update
November 21, 2012: The Teamster National Negotiating Committee has met with UPS four times, Sept. 27, Oct. 15-18, Oct. 22-25 and Nov. 12-15, to negotiate over language and operations issues.
The Union has put forward key proposals on harassment, excessive overtime, and technology. The company has countered with concessionary proposals–including more ability to subcontract out jobs.
Contract negotiations are moving slowly and are suspended until after the second week of January.
Negotiations are expected to get more serious at that time. That's also when bargaining will begin over critical economic issues including wages, healthcare, full-time jobs and pensions.
President Hoffa has promised that pension increases, full-time combo job creation, and benefits will be key contract issues.
UPS Teamsters need to be ready to hold our negotiators' feet to the fire.
TDU's Make UPS Deliver network is about just that. Click here to get involved today.
Subcontracting and SurePost
Protecting Teamster jobs at UPS is a sticking point in negotiations. The company is looking for flexibility to subcontract Teamster work.
SurePost ReDirect will return a bit of work to Teamster drivers, but leaves other subcontracting to the Post Office in place.
The Union has yet to put forward specific proposals to reduce subcontracting and require full-time job creation as a condition of continued Union cooperation with SurePost.
UPS has proposed having an integrated over-the-road network where feeder and road work could be done by UPS, UPS Freight or UPS CSI drivers. This would pit Teamster drivers who make different wage rates against each other and open the door to subcontracting that would be impossible to police.
Harassment and Excessive Overtime
The Union submitted proposals to the company to deal with harassment and excessive overtime, including new language on 9.5 and 8-hour requests.
On 9.5, the union has proposed making the 9.5 list "opt-out" instead of "opt-in." All drivers would automatically be eligible for triple-time penalties for 9.5 violations unless they signed an opt-out list which would cover a five month period.
The union is also proposing protections to stop management from retaliating against members who exercise their 9.5 rights.
"Ken Hall says there will be no contract unless UPS deals with production harassment and excessive overtime. That's something every UPSer can unite behind. We need a game plan beyond the bargaining table to beat UPS on these issues. Hoffa and Hall need to give members a chance to show we support the union's demands. Closed-door bargaining won't win us the protections we need."
Zach Pfeiffer, Local 89, Louisville
Unfair Discipline and Technology
The IBT put forward a key proposal that would change Article 6, Section 8 so that members cannot be disciplined based solely on information from GPS, telematics or other technology.
The IBT put forward the same proposal when the last contract was bargained, but dropped it and accepted a company proposal that allows UPS to use GPS and telematics to fire drivers in cases of "proven dishonesty."
Ever since, the company has abused this 'dishonesty' loophole to terminate drivers.
"I’m 100 percent behind the Union's proposal to ban UPS from using information from technology to discipline drivers. The Company has abused the contract and stretched 'dishonesty' beyond all reason. Human error is not dishonesty. DIAD mistakes are not dishonesty. We've got to restore fairness and common sense to discipline."
Ralston Boswell, Local 804, New York
Same-Day Deliveries?
November 21, 2012: UPS has told the Negotiating Committee it wants to expand into same-day deliveries.
The Postal Service is experimenting with same-day delivery of online orders in San Francisco, with a new service called Metro Post. Amazon, eBay and Wal-Mart are also testing same-day delivery.
In order to deliver a package on the same day it's shipped, the Post Office will have to get the pick-up request from the company between 2:00 and 3:00 p.m. Home delivery is promised between 4:00 and 8:00 p.m.
The model is based on the driver doing pick-up and delivery without returning to a building for sorting.
It makes sense for UPS to get into this market. But what will the contract terms be. No doubt, UPS will want to use air-drivers or part-time drivers at a reduced rate of pay.
But same-day deliveries are parcels, not envelopes.
This is a growing market and UPS will charge a premium for the service. The work should be done by Teamsters getting paid top-rate with union benefits.
Teamsters Speak Out on the Contract
Increase Substandard Pensions
"We need an increase in the UPS-Teamster pension for those of us who came out of the Central States. It's covered under Article 34 of the contract, so if we don't get an increase, we would be stuck for another five years."
Chris Janssen
Local 90, Des Moines, Iowa
Protect Jobs. End Subcontracting.
"There's subcontracting language in our contract but when is it enforced? Ken Hall came to visit our terminal and management made sure to have all the non-UPS trailers moved off property. That's the kind of shell game they play. We need to play hardball. We need far stronger language, and real cash penalties, to get the contract fixed and put a stop to it."
Jim Zahn
Local 688, St. Louis
End the Information Brownout
"Members have to be informed and involved if we're going to win a decent contract. That means we need to hear what's happening at negotiations and a real campaign beyond the bargaining table if we're going to get some real changes. Tell Ken Hall to lift the "Brownout" and mobilize members to win."
Mark Holton
Local 413, Columbus, Ohio
End Part-Time Poverty
"We are generating billions in profits for UPS. Part-timers deserve a wage increase.
"With this contract we are asking for our fair share, and for dignity and respect in the workplace. Let's stand together to end part-time poverty at UPS."
Daniel Ginsberg-Jaeckle
Local 344, Milwaukee
UPS & Downs
November 21, 2012
Brownout Hits Local Unions
The International Union's information brownout is even keeping local officers in the dark.
The International has not given Local Unions a copy of the company's bargaining proposals or the Union's own proposals on production harassment and 9.5, which Ken Hall says are priority issues.
It's tough for members to back our bargaining committee when we don't even know what's being negotiated.
Last time, the Information Brownout ended with Hoffa and Hall giving UPS a concessionary contract even though the company was making record profits.
TDU makes sure UPS Teamsters get information about what's happening in contract negotiations so we can stand united for the improvements we need.
Click here to sign up for contract updates at www.MakeUPSDeliver.org.
UPS Forecasts Higher Profits
UPS has upgraded its projected profits for the year.
The company's third-quarter profits met Wall Street expectations. UPS said its overall profit for the third quarter would have been about $1.66 billion, down just a fraction from $1.67 billion last year. This comes to after-tax profits of $1.03 billion.
Once again, UPS Teamsters drove the company's revenue. International package volume dropped by 3.7% or 400,000 packages a day. U.S. package revenue increased $94 million over last year, driven by a 3.7% gain in daily volume.
On a conference call with investors and analysts, UPS's chief financial officer, Kurt P. Kuehn, said the company was raising its profit projections for the year.
"Given our performance and greater confidence in fourth-quarter execution, we have enhanced our full-year earnings guidance," Kuehn said.
Part-Time Poverty by the Numbers
November 21, 2012: Part-time wages are at an all-time low at UPS. How much do part-timers deserve a raise? Consider these facts:
- The starting rate of $8.50 is less than minimum wage in some states.
- Before 1982, part-timers made the same wages as full-timers. That year, the starting rate was cut to $8. It has gone up just 50¢ in 30 years.
- If part-time wages had just kept up with inflation, then the starting wage for part-timers today would be $19.18.
- Today's starting wage of $8.50 is worth just $3.71 in 1982 dollars.
- In the last contract, UPS part-timers went backwards. New employees now have to wait one year to get medical benefits, 18 months for family coverage.
- UPS will make more than $4 billion this year. Half of UPS employees are part-timers. It's time to end part-time poverty at UPS.
Send UPS management a message!
Click here to order "End Part-Time Poverty at UPS" T-shirts online, or call 313-842-2600.
T-shirts are $15 each plus $2 shipping.
When you order more than 5 at a time, you save $3 per shirt.
End Part-Time Poverty decals are available too. Click here to order.
UPS Bargaining Update
November 2, 2012: The International Union is maintaining an information Brownout as contract negotiations continue.
The Teamster National Negotiating Committees held two series of bargaining sessions from Oct. 15-18 and Oct. 22-25 in St. Petersburg, Florida. But the International has not issued any bargaining update to the members since the first negotiating session in September.
The IBT is also keeping Local Unions in the dark. The International has not even given Local Unions a copy of the company's bargaining proposals.
The International submitted its opening bargaining proposals on Sept. 27. Reportedly, the IBT submitted new proposals in October bargaining that deal with harassment and excessive overtime, including new language on 9.5 and 8-hour requests.
On 9.5, the union has proposed making the 9.5 list "opt-out" instead of "opt-in." All drivers would automatically be eligible for triple-time penalties for 9.5 violations unless they signed an opt-out list which would cover a five month period.
The union is also proposing protections to stop management from retaliating against members who exercise their 9.5 rights.
Another important union proposal would change Article 6, Section 8 so that members cannot be disciplined based solely on information from GPS, telematics or other technology. The IBT dropped this bargaining proposal in the last contract round, and ever since the company has abused the language unfairly discipline and terminate drivers for "dishonesty."
Much of the bargaining has been about the union's proposals, but the company has its own agenda of concessions.
UPS has proposed having an integrated over-the-road network where feeder and road work would be done by UPS, UPS Freight or UPS CSI drivers. Not only do these drivers make different wage rates, but the company is constantly looking for ways to subcontract out work from all its operations.
The Company made a presentation on SurePost. SurePost ReDirect will return a bit of work to Teamster drivers, but leaves other subcontracting to the Post Office in place.
The Union has not yet put forward specific proposals to reduce subcontracting and require full-time job creation as a condition of continued Union cooperation with SurePost.
Winning new full-time jobs in feeder and package is a must. We need to draw the line against subcontracting and win new full-time jobs in feeder and package.
Bargaining over economic issues including wages, pensions, full-time jobs and benefits won't begin until after peak.
President Hoffa has promised that pension increases, full-time combo job creation, and benefits will be key contract issues.
Bargaining resumes on November 12-15, and then will recess until January.
This is our contract and members have the right to know what's happening in negotiations.
TDU stands for ending the information Brownout and bringing UPS Teamsters together to fight for the contract improvements we deserve. Click here to sign up for email updates from Make UPS Deliver.
IBT Gives UPS Initial Bargaining Proposals
September 28, 2012: Yesterday the International Union gave UPS management the union's initial contract proposals. This is your contract and TDU is making our Union's proposals available to members to download and review.
Click here to download and review the proposals.
Contract talks will resume in mid-October. Negotiations this fall will focus on language and working conditions. Economic issues, including wages, pensions and health and welfare will be addressed beginning in January, according to the IBT.
The IBT has promised to fight for improved pensions, increased wages, and to protect health benefits. The Company and the IBT have agreed on March 31 as the target date for an agreement. The contract doesn't expire until July 31.
The first page of the International Union's bargaining demands includes a strongly-worded "Note on Harassment" that hammers on the many areas where the company has been exploiting loopholes in the current agreement to ride all over UPSers.
This preamble states that the union will be making proposals to deal with these issues. Chief negotiator Ken Hall also issued a press release saying there will be no agreement reached unless harassment is dealt with to the union's satisfaction.
But so far the IBT has offered few specific proposals on harassment.
The opening proposals spell out some good new language on supervisors working (Article 3), retaliation for comp claims (Article 14) and discipline based solely on technology (Article 6). A comprehensive proposal on the company's use of technology is promised.
Members will also have to wait to see what proposals the IBT has in mind on excessive overtime, over-dispatch, 9.5, 8-hour requests and harassment. The Union's opening proposal on Article 37, which covers these issues, is blank.
The packet states that SurePost "has expanded far beyond what was originally proposed" and that the Union can no longer agree to continue the program without firm restrictions on size and weight limits on packages and other protections. (Article 26)
Hoffa told the National Press Club that winning more full-time 22.3 jobs will be a priority of the agreement. Language is proposed that would guarantee that 22.3 jobs would remain in a Local Union's jurisdiction once they are created and filled.
But so far, there is no proposal on creating more full-time jobs or even on accounting for the 22.3 jobs the company illegally eliminated during this contract.
The IBT has indicated that additional proposals on 22.3 job creation will be submitted during bargaining on economics.
The only demand relating to part-time employees is to change the six-to-one ratio for bidding into vacant full-time jobs to eight-to-one.
More proposals will be submitted later, including important economic demands for part-timers. Local Union officers at the two-person meeting in Chicago overwhelmingly endorsed that the Union demand an increase in part-time starting pay.
Bargaining will take place on regional supplements and local riders across the country. Members have a legal right to vote on their supplement, as well as the national contract, after a tentative agreement is reached.
The UPS and UPS Freight contracts don't expire until August 1, 2013. Management wants an early deal to remove any threat of a work stoppage or last-minute contract rejection. In return, our union and members have every right to demand a strong contract.
We only get the chance to bargain a contract every five years. We need to make the most of this opportunity to address the many problems at UPS.
Members are encouraged to review the packet of proposals submitted so far—and give their feedback. The union has the right to make additions, deletions or modifications to its demands. The time to speak up is now.
The International Union did not receive any bargaining proposals from the Company. Those will require careful review too.
TDU will continue to keep members informed and build rank-and-file unity to Make UPS Deliver the contract we deserve. Click here to sign up for contract updates or to send a message to TDU.
UPS Contract Proposals Set
September 21, 2012: The International Union briefed local union officers in Chicago today on the union's proposals for UPS contract negotiations. Bargaining on the national contract opens on Sept. 27.
Chief negotiator Ken Hall gave a presentation on key contract issues while local officers reviewed briefing books with a partial list of the union's contract proposals.
Union bargaining proposals will reportedly include:
Pension Increases: More money for pensions, including increases in the benefits paid by the IBT-UPS plan that covers 48,000 full-time UPSers in the Central and Southern regions.
Full-Time 22.3 Jobs: More full-time 22.3 jobs and language that would require the company to maintain 22.3 jobs in the local union where they are created.
Protection for UPS Technology: Language to protect drivers from discipline solely based on GPS and telematics technology.
Wage increases including increases in starting pay for part-timers which has been frozen at $8.50 since 1987.
Regarding Surepost, Hall said it is up to UPS to propose language that protects Teamsters from the controversial program if the company wants the union’s continued cooperation with Surepost.
Hall noted that harassment and excessive overtime were key bargaining issues, but did not reveal specific contract proposals the Union will put forward.
Hall promised that every Local would receive a complete copy of the union's bargaining proposals when the company and IBT exchange proposals next Thursday, Sept. 27.
For the first time ever, local officers were not allowed to keep copies of the union bargaining proposals. Hall said TDU would post the proposals for members, before he hands them to management next week.
TDU's Make UPS Deliver network will keep members in the loop with contract updates. Click here to sign up for contract updates from TDU.