May 28, 2008: DHL unveiled a far-reaching restructuring of its troubled U.S. express business Wednesday that includes a sharp pullback in its operations and outsourcing its air transport business to competitor UPS.

John Allan, chief financial officer of DHL parent Deutsche Post World Net, called the moves "radical and decisive actions" but said it will still leave DHL losing $3 billion between 2008 and 2011.

DHL said it will eliminate about 34 percent of its stations in the United States by consolidating some stations in various cities and shutting others in remote locations, leaving the carrier with a smaller operation in the country while maintaining a "strong presence." The cutbacks, the company said, would have a "very minimal" impact on customers, affecting only a small percentage of pickups and deliveries as DHL uses the U.S. Postal Service for some of its remote pickup and delivery operations.

"The impacted number of shipments is below 4 percent," said DPWN Chairman Frank Appel.

The larger change will be in air operations, where DHL said it will phase out its outsourced flying with ABX Air and ASTAR Air Cargo and turn that business over to UPS. DHL said it is negotiating a 10-year contract for the airport-to-airport transportation with UPS but expected to pay its competitor some $1 billion a year for the aviation services.

The actions scale back the strong push DHL made in the United States in recent years, capped by the purchase in 2003 of Airborne Express, then the country's No. 3 express carrier. Publicly traded DPWN has been under growing pressure to pull back or even withdraw from the United States in the face of hundreds of millions of dollars in losses.

Deutsche Post would not detail its total losses in the United States, but the company projects $1.3 billion in operating losses in 2008, $900 million next and continuing losses at least through 2011.

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: Is the company trying to water down the new 9.5/Excessive Overtime language it just negotiated? The new Article 37 language has been in effect since January 1. But with the exception of a few areas, the company did not post the “9.5 Opt-In/Opt-Out” lists required by the language.

The issue has reportedly been under discussion by Teamster and company officials at the highest levels.

What’s to discuss? The new language is crystal clear. The company tried to win restrictions that would prohibit some Teamsters from “opting-in,” which means they would lose their right to file 9.5 grievances.

Our union negotiators said No to these restrictions. Now management is reportedly trying to rewrite the rules.

The new Article 37 language creates a 9.5 Committee that “shall also have the authority to adopt guidelines to ensure that this Section is implemented in such a way as to balance the Employer’s need to protect the integrity of its operations with an employee’s legitimate need to avoid excessive overtime.”

Many UPS Teamsters are worried this language creates a loophole that could further weaken our right to grieve excessive overtime. The Parcel Division needs to hold UPS to the contract they negotiated.

The deadline for posting the Opt-In/Opt-Out lists covering June to October is May 2. As we go to press, there is still no word on whether the lists will go up on time.

As it currently stands, members who have not signed an “Opt-Out” list have retained their right to file 9.5 grievances. The penalty for violations is now triple time pay for hours worked in excess of 9.5 hours.

You can find more UPS coverage by going to the following links:

• UPSer Network Takes on Harassment, Excessive OT
• Fear Factor
• UPS First Quarter Profits Up 7.5 Percent

May 21, 2008: Stewards and other UPS Teamsters in North Carolina are getting together on conference calls to deal with contract issues and help each other enforce members’ rights on the job.

“It can be really hard dealing with all the problems management throws at us when you feel like you’re on your own,” says Scott Weaver, a Local 61 package car steward out of Shelby, N.C. “These meetings give me a chance to learn from other stewards and members.”

Once a month, North Carolina UPSers meet by conference call to talk about an issue they’re dealing with at work, and share strategies for solving the problem. The meetings are pulling together members from all three North Carolina locals—61, 71, and 391.

The last call dealt with production harassment at work. Members talked about the different ways UPS management uses harassment to speed up the work, and members talked about strategies for dealing with harassment, including using the daily log book for package car drivers (available from TDU).

Another call dealt with excessive overtime. Members discussed strategies for dealing with excessive overtime and heard how several centers have reduced over-dispatch issues.

Turning the Tables

“These calls have already helped me deal with grievances,” Weaver reports. “I found out one of our issues was covered under company policy. When I brought that up in a grievance meeting, I turned the tables on management, and they dropped the issue.”

“I think UPS has a plan to put more pressure on the young guys,” says James McLeod, a feeder driver in Local 71 from Florence, S.C. “Our job is to communicate with them and share information and experience about how to put up with management’s games. My goal in Florence is to get more folks onto these calls—and get the other South Carolina centers in the loop too.”

If you’re interested in participating in a call in your area, contact Teamsters for a Democratic Union at (313) 842-2600.

May 1, 2008: Most of us hired on at UPS for the same reasons. Good pay, good benefits, job security, a chance to make a life for our families. The company knows these reasons for you wanting to work for them, and they use them to create a highly motivated work force.

Nothing is more fearful to a person than the prospect that his or her mate or children will go without food, healthcare, or a roof over their head. Management works this fear to push their people.

Very often management is feeling the very same fear. Management’s push comes from their own same desire to provide for their family and survive within the UPS environment. The fact remains that UPS continues to manage with fear as a dominant part of their program. Your question should be, “How do I deal with the fear?”

If you look around you, there are many drivers and other employees that have been at UPS for years. The fact is these employees have come to a very simple realization. “If I do my job by the book I do not have to live in fear.”

Sounds simple doesn’t it? “If I am careful to perform the job as I have been trained, I am in little danger of losing my job.”

But if you take shortcuts because of fear that you are not meeting the arbitrary performance standards, you have good reason to be scared. There is every possibility that you may be fired.

Methods first!!! Production second!!!

Learn these lessons, or you do have something to fear!

Reprinted with permission from www.DenverBrown.com

by Bob Newhouse
UPS Package Car Driver
Local 455, Denver

May 1, 2008: UPS announced its profit rose 7.5 percent in the first quarter, though it was affected by the weakening U.S. economy. After-tax profits rose to $906 million, or 87 cents a share, for the January-March quarter, compared to $843 million, or 78 cents a share, for the same period last year.

Revenue in the quarter rose 6.5 percent to $12.68 billion, compared to $11.91 billion last year. UPS said it benefited from strong gains in its international operations. But UPS said it doesn’t expect the U.S. economy to strengthen in the second quarter.

During the first quarter, UPS delivered total consolidated volume of 968 million packages, unchanged from a year ago. UPS said the slowing U.S. economy reduced average daily volume in the U.S. by 0.3 percent for the quarter. It saw volume declines in next-day air shipments.

May 1, 2008: Local 804 has a proud history as one of the most powerful locals in our union. Local 804 members were pioneers in the fight for strong Teamster pensions—winning 25 & Out pensions before the rest of the country. The Local 804 supplement is one of the strongest at UPS.

“Brown can’t move a package in New York City without a Local 804 Teamster. That gives us power, and our local used to use it to win top contracts and pensions,” says Tim Sylvester, a 29-year Teamster and Local 804 shop steward in Queens.

“Local 804 members used to feel that power,” Sylvester said. “We want to bring the pride and the power back.”

Local 804 has faced a series of setbacks since the historic UPS strike.

The local’s legendary president Ron Carey, the first democratically-elected General President of the Teamsters, stepped down shortly after the strike after an illegal fundraising scheme by his campaign aides was revealed. Carey was later barred from the union even though he was found not guilty in court of any role in the scandal.

After Carey’s removal, Local 804 officers threw their allegiance behind Hoffa and have gone along with his closed-door bargaining style.

“That was a big blow,” said Pete Mastrandrea, a feeder driver and 33-year Teamster. “Local 804 had always been about standing up. But our Executive Board started to take the path of least resistance.”

Pension Cuts, Concessions

“We went from a local where information was power to members basically being kept in the dark,” said Jim Reynolds, an alternate steward.

In November 2006, members were completely blindsided when the Local 804 Pension Fund announced a 30 percent cut in pension accruals. One year later, Local 804 officials negotiated a concessionary contract with UPS.

“That’s when it really hit the fan,” Reynolds said. He and other Teamsters started holding meetings of concerned members from across the local. They launched a Vote No campaign and helped defeat the contract by a three to one vote.

Local 804 negotiators and UPS were forced to return to the bargaining table. UPS agreed to reverse the 2006 pension cuts, and took other concessions off the table, including its demand to eliminate 25 & Out pensions for new Teamsters.

Bylaws Campaign

After the contract vote, leaders of the Vote No campaign got together to propose positive changes.

“We wanted to get to the root of the problem, one of which is the lack of information members were getting from our union,” Reynolds said.

Volunteers circulated petitions to change the Local 804 bylaws to require officers to keep members informed during bargaining and to report on the pension and welfare funds at every membership meeting. Two thousand members signed each petition.

Last month, the bylaw changes were approved by more than 90 percent. Even Local 804 president Howard Redmond endorsed the proposals.

“After such an overwhelming number of members signed, the changes were pretty impossible to oppose,” said Mark Cohen, a package car driver from Brooklyn.

“There’s a lot of frustration. Not everybody is ready to take the next step and get involved. But more and more people are saying things have got to change,” said Cohen.

“The good thing about the petition was that members got over the fear of putting their name on something, the fear that if you speak out then somehow you’re going against the union. We’re behind our union and we want to make it better.”

Pension Watchdogs

Local 804 members once enjoyed the best pensions at UPS. But not anymore. Many UPS Teamsters now have superior pensions, especially for 30 & Out. Most UPSers will see their pension accrual climb over the life of this contract. The 804 pension accrual is frozen at the 2002 level of $144 a year.

Members are using their rights under the Pension Protection Act to request information from the pension plan to look at why the fund developed funding problems and investigate what can be done to improve benefits in the future.

“The last couple of years have been a real wake-up call as far as our pension is concerned,” said Bill Reynolds, a package car driver on Long Island and one of the members who has pressed the fund to release the documents.

“I was told by an Executive Board member that I could sleep sound at night knowing that my pension is safe—and one month later the fund announced a pension cut,” Reynolds said. “Members are realizing we have to be better informed and more vigilant about protecting our benefits.”

Other Teamster pension funds have complied with these information requests—but the Local 804 fund has refused to turn over the documents. Members are now working with TDU pension attorney Ann Curry Thompson to get the information they are entitled to.

Enforcing Rights

Local 804 members are also working together on the shop floor—where strong unionism starts.

“Management is always pushing people to work faster. I don’t like the intimidation tactics or the harassment,” said Rob Glovitz, an inside worker and steward.

“We want things to be done right—to stop supervisors from working as much as possible, to eliminate favoritism, to make people feel comfortable that they can come to work without being harassed,” said Glovitz.

“The union is about more than the union hall. We’re the union—the ones who move the packages. If we want to make things better, it’s up to us.”

Restoring the Power

“We all have a responsibility to leave our union stronger than it was when we got here. That’s what Local 804 Members United is all about,” says Tim Sylvester.

“This board takes the position that if you speak out, you’re trying to divide the union. It’s totally the opposite,” Mastrandrea says. “When members voice their opinion, it strengthens the union because we’re setting our course together. What the membership is saying now is we want to see our local stand up and take action on the problems we face.”

“You hear so many stories about how it used to be, how the company used to fear our local. I don’t see that anymore,” said Mark Cohen. “No one wants a fight at work everyday—but we do want respect. We’ve got to work together and act like a union in the center. That’s where it all starts.”

“It’s up to all of us to take the next step, to hand out information, come to a meeting, to get involved.”

April 23, 2008: UPS Inc., the world's largest shipping carrier, said Wednesday its profit rose 7.5 percent in the first quarter, though it was affected by the weakening U.S. economy. The company lowered its earnings guidance for the year.

Click here to read more at yahoo.com.

April 21, 2008: UPS Teamsters in New York have overwhelmingly voted for changes that will put more pension and contract information in the hands of the members.

At a meeting on April 20, New York Local 804 members approved two changes to their local union bylaws by more than 90 percent.

By a 208 to 12 margin, members voted to require the Executive Board to give a report on the pension and health and welfare funds at each quarterly membership meeting.

By a 207 to 19 vote, members voted to require the local to establish a contract committee to keep members informed and united whenever a contract is being negotiated.

The bylaws campaign grew out of a rank-and-file mobilization against pension cuts and contract concessions at UPS—including a 30 percent cut in pension accruals in 2006.

Last year, members voted by nearly 3 to 1 to reject contact givebacks negotiated with UPS by Local 804 officials.

As a result, members won a better contract offer that both reversed the 2006 pension cuts and defeated new demands by UPS to cut pension benefits for new hires and divert part of members’ wages to pay for their pensions.

But Local 804 Teamsters didn’t stop after they defeated the givebacks. They formed a network called 804 Members United and launched a campaign to reform their local union bylaws.

Members fanned out across the local, distributing leaflets, talking Teamster-to-Teamster and collecting signatures. Two thousand members signed petitions supporting changes to the local union bylaws.

At the last membership meeting, Local 804 President Howard Redmond denounced members “who are handing out papers and dividing the local.”

But Redmond changed his tune yesterday—endorsing the bylaws proposals from the podium. Redmond also pledged to help members obtain pension documents that the Local 804 fund has failed to turn over to members in violation of the Pension Protection Act.

For more information, visit www.804membersunited.org.

April 7, 2008: The Teamsters union said on Monday that 9,900 workers at United Parcel Service Inc trucking unit UPS Freight have ratified a five-year contract with UPS that also makes them members of the union.

Click here to read more at Reuters.com.