Members who have contacted the Parcel Division have been told that our union has made no agreement with UPS to allow the company to use Air Drivers to pick up ground packages from drop boxes.

The Parcel Division has advised members to file grievances on all violations.

Article 40 of the contract prohibits Air Drivers from handling ground packages except under a narrowly defined “exception basis.”

This language exists to stop the company from exploiting lower-paid Air Drivers instead of creating higher-paying package car positions. The top pay rate for package car drivers is more than $28 an hour compared to as little as $11.50 for Air Drivers.

By standing up for our contract, we can defend package car jobs—and win monetary awards for Air Drivers.

Stewards and working Teamsters at UPS need to have our eyes open and file grievances on drop box violations.

Our grievances should demand that UPS pay Air Drivers who handle ground packages out of drop boxes the highest package car driver wage rate and that the company cease and desist from this practice.

Click here to fill us in on what's happening in your local on this issue.

Click here to read "First Big Contract Test at UPS."

February 18, 2008: UPS has launched a new contract-busting program to use air drivers to pick up ground packages at a substandard rate of pay.

This is the first big test of the new UPS contract. Our International Union must answer the call and stop the company from undermining high-paid, full-time jobs at UPS.

UPS announced on Feb. 15 that it now accepts ground packages in its drop boxes and that Air Drivers will pick up these ground packages at their regular pay rate.

In a management memo obtained by Teamsters for a Democratic Union, UPS claims it has the green light from the International Union for this scheme, which directly violates the contract.

Article 40 expressly prohibits Air Drivers from handling ground packages except under a narrowly defined “exception basis.”

Any violation of this language requires UPS to pay Air Drivers who deliver ground packages “the top regular package car driver wage rate” in their building. The top pay rate for package car drivers is more than $28 an hour—compared to as little as $11.50 for Air Drivers.

The only exception outlined under Article 40 is when an Air Driver is making a pickup “after the regular driver has been to the customer’s premises, and the customer has an exception ground package(s) for shipment.”

This language draws a clear line in the sand. It exists to stop UPS from eliminating package car jobs by using lower-paid Air Drivers to handle ground packages. UPS’s new Drop Box program doesn’t just cross the line; it eliminates it altogether.

In a management memo, UPS claims that the International Union agreed to this scheme as part of the new contract. The memo states that, “The new labor agreement provides UPS with the flexibility for all drivers to pick up all packages in UPS Drop Boxes. Part- and full-time air drivers and package car drivers can pick up ground packages with no change in pay rate.”

The memo goes on to state that “The new Joint UPS/IBT Competition Committee will review this initiative in six months”—suggesting that the International Union discussed the new program under the committee which was created under Article 26 of the new contract.

Even if that were true, the UPS/IBT Competition Committee does not have the authority to rewrite Article 40 or any other contract language.

With or without union approval, UPS is moving full speed ahead. Drivers are being instructed to post new decals on drop boxes that say, “UPS Ground, Air and International Packages accepted here.”

Management’s memo makes it clear that the program will be expansive and that Air Drivers will be picking up ground packages on far more than an “exception basis.” The memo outlines instructions for how to respond to increased volume at drop box locations.

If UPS management wanted to renegotiate Article 40, they should have brought their proposals to the bargaining table and put them to a membership vote.

Management is free to expand its drop box program to include ground packages. But until our contract expires in 2013, these ground packages are to be handled by package car drivers. If UPS needs to create more package car positions so be it.

Our International Union needs to communicate clearly to both UPS and to Teamster members where it stands on this new program—and the company’s contention that it is allowed to use Air Drivers to handle ground packages “with no change in pay rate.”

In the meantime, stewards and working Teamsters at UPS need to have our eyes open and file grievances on drop box violations. Our grievances should demand that Air Drivers who handle ground packages out of drop boxes be paid the highest package car driver wage rate and UPS cease and desist from this practice.

Click here to see the management memo on Ground in UPS Drop Boxes.

Click here to report what’s happening in your area on this issue.

January 30, 2008: UPS reported a quarterly loss on Wednesday due to its $6.1 billion one-time payment to the Central States Pension fund.

Brown reported a fourth-quarter net loss of $2.58 billion, or $2.46 a share, compared with a net profit of $1.13 billion, or $1.04 a share, a year earlier.

But the picture is rosier than it sounds—for UPS stockholders at least.

Excluding the payment to Central States, UPS earned $1.13 per share—an increase over the previous quarter. Reuters reports that revenue rose to $13.4 billion from $12.6 billion, topping analysts' expectations of $13.23 billion.

UPS’s $6.1 billion payoff to Central States was required under the law to let UPS break out of the Central States Pension Fund. It will pave the way to for UPS to save billions through lower benefit costs under its new pension plan covering Teamsters in the Carolinas and the Central and Southern Regions.

The 44,000 Teamsters covered by the new UPS pension plan will receive the lowest pension benefits of any UPS Teamsters.

By the end of the contract many UPS Teamsters will get 30 & Out pensions of $4,000 and $5,000 or more per month. Teamsters under the UPS plan will be locked into a $3,000 a month benefit for 30 and out.

UPS’s fourth quarter loss will be paid for—and then some—by UPS Teamsters who will be getting lower pensions.

No wonder UPS shares rose 55 cents—after the loss was announced—to $71.47 at midday on the New York Stock Exchange.

Click here to read more about the Pension Divide at UPS.

Click here to read about how UPS will reduce benefit costs and save billions.

Click here to download the Pension Comparison Chart.

January 17, 2008: By Bret Caldwell: A majority of workers at seven UPS Freight terminals throughout New England have signed authorization cards to become Teamsters, providing strong momentum in the nationwide campaign to give thousands of company employees a strong voice on the job, Teamsters General President Jim Hoffa announced.

The cards will now be sent to a neutral arbitrator, paving the way for the company to officially recognize the 315 workers, which is expected to occur within a week. The workers belong to the following local unions: Local 25 in Boston; Local 170 in Worcester, Massachusetts, Local 251 in E. Providence, Rhode Island; Local 340 in S. Portland, Maine; Local 404 in Springfield, Massachusetts; Local 443 in New Haven, Connecticut, and Local 633 in Manchester, New Hampshire.

Read more on the IBT website.

January 10, 2008: A study of major Teamster pension plans reveals a growing “Benefit Divide,” with the new UPS Pension Plan paying the worst benefits in the country.

By the end of the contract in 2013, the Benefit Divide will grow much worse, with tens of thousands of UPS Teamsters receiving 25- or 30-and-out benefits of $5,000 per month while the UPS Plan pays just $3,000.

Some Teamster funds are also falling behind as the Benefit Divide grows—but none as far as the new UPS plan, which covers 44,000 Teamsters in the Carolinas and the Central and Southern Regions—nearly half of the company’s full-time workforce.

The Pension Comparison Chart compiled by TDU shows the range and variation of benefits of the great majority of pension plans covering UPS Teamsters. Click here to view the chart.

While this information pertains to UPS Teamsters, almost all of these funds cover other Teamsters as well. In most of these plans, freight and carhaul Teamsters and members covered by other Teamster contracts get the same or similar benefits.

Key findings of our preliminary Pension Comparison study include:

• The UPS Pension Plan pays the lowest level of benefits and will save the company billions in reduced benefit costs. There is not a single plan, large or small, covering UPS Teamsters that is worse. Almost all provide a better pension, and some provide a far superior pension. Many provide a larger pension at 25 years than the UPS Plan pays for 30 years service.
• The Benefit Divide will grow wider over the life of the new master contracts. By the end of the new UPS agreement contract in 2013, tens of thousands of Teamsters in the Western Region will retire with a $5,000 pension, with less than 30 years service. So will UPS Teamsters in Washington, D.C. In some other areas UPS Teamsters will retire with $4,000 for 30-and-out.
• While the new UPS Plan is at the bottom of the Benefit Divide, other major Teamster plans are also falling behind.

What Caused the Divide?

A critical factor behind the growing Benefit Divide is the wide range in pension accruals, the amount you earn (or “accrue”) each year to your monthly pension benefit upon retirement.

Many Teamsters are used to benefit structures like “$3,500 for 30-and-out.” As you look over the Pension Comparison chart, many of the benchmark benefits look like that.

But many Teamster pension funds have shifted their benefit structure to one based on an annual accrual, or multiplier. Under this system, you earn (or “accrue”) money toward your monthly pension benefit each year you work.

Within five years, most Teamsters will be getting a pension based on the accrual method, because those benefits are quickly surpassing the existing 25-and-out and 30-and-out benefits.

For example, the Western Pennsylvania plan currently has a $3,500 30-and-out benefit. But it also has an accrual system that will rapidly overtake that benefit. That’s why by the end of the current UPS contract, members will be able to retire with about $4,300 there. Some pension plans will be paying more, some less, but most will be in that range.

But the accrual in the UPS Plan is set artificially low and set to rise slowly. And it cannot be improved for five and a half years, because it is locked down by the contract.

While the accrual rate will be $400 in some funds and $300 in a number of funds, the accrual in the UPS Pension Plan will be only get to $158 by the end of the contract. This is even lower than the Central States Pension Fund, where the accrual will reach $200 by 2013.

The comparison chart reveals the wide range and variation of benefits for UPS Teamsters—and many other Teamsters earning top pension benefits as well. Our union needs a comprehensive plan to bring all benefits up to the highest levels and to upgrade all Teamster contracts so that Teamsters getting inferior benefits can achieve quality pensions.

Click here to view the TDU Pension Comparison Chart.

January 10, 2008: Language changes in the new UPS contract are now in effect—even though we won’t get our wage or benefit increases until August.

UPS Teamsters need to stay on top of new language—and make it work in our favor.

Excessive Overtime: Opt-In, Opt-Out Up in the Air

UPS is being even more inconsistent than usual in its implementation of the new contract language on excessive overtime grievances.

The new contract requires the company to post a “9.5 opt-in/opt-out” list before Jan. 1 to govern 9.5 grievances through May 31. Drivers who “opt-out” of the 9.5 language will have no right to file a grievance alleging excessive overtime until June 1.

While management circulated the opt-in/opt-out list in some cities as early as Dec. 15, drivers in most areas report that UPS has still taken no action at all.

In other locals, members report that UPS has agreed to go by the old 9.5 language under which all members are eligible to grieve excessive overtime.

That suits many UPS Teamsters just fine who don’t understand why our International Union bargained away the right of some members to file excessive overtime grievances.

“As steward, I will be encouraging everyone to sign the ‘opt in’ list to limit the excessive overtime. I hope I can get all to sign it, but there may be some folks who resist it,” said John Price, a Local 773 steward from Stroudsburg, Penn.

“If nearly everyone ‘opts-in’ we can make this really become ‘non-language’ and protect the right of all employees to grieve excessive overtime. It works well now on the honor system. If your boss knows you don’t want the overtime and are willing to file the grievance he dispatches you much more carefully. If he knows you would like the overtime they obviously desire to have you work such hours,” said Price.

“However by not signing the list you give them complete control of your day for 12 hours a day. Where will that get you when you all of a sudden have an unexpected change in your life? For instance your wife all of a sudden gets her work schedule changed and you need to be home earlier, or you have a loved one who becomes ill and you would like to see them after work, but after work is now 10pm! It’s just bad. It gives back all we fought for,” Price said.

On a positive note, the new contract increases the penalty for excessive overtime grievances to triple time pay for hours worked in excess of 9.5 hours.

To make this improvement mean something, our union needs to insist on the full penalty for 9.5 violations.

Time to File Grievances Cut in Central Region

UPS Teamsters in the Central Region will have half as much time to file a grievance under the new contract. Article 5 of the Central Region supplement states that employees must “reduce the grievance to writing on the regular grievance form provided by the union and have it submitted to the company within five (5) working days.”

That’s a big change from the 10 working days we had in the past and members will need to be on the ball to get grievances filed in a timely manner.

Also, the time the steward has to grieve discipline has been reduced from 10 working days to 10 calendar days.

Watch Out for New Subcontracting Loopholes

Article 26 contains new contract language that will make it harder for local unions to police subcontracting through the grievance procedure.

Under new language in Section 3, “only the Local Union with jurisdiction in the geographic area in which a subcontracted feeder movement originates” can file a grievance for subcontracting.

This will prohibit local unions who are being “run over” from aggressively taking on the subcontracting.

Affected locals will be forced to appeal to the Parcel and Small Package Division which will also have the right to file a subcontracting grievance in these cases.

UPS Teamsters need to keep the pressure on the Parcel Division to stop subcontracting when some locals aren’t.

January 10, 2008: Chicago Local 705 has won a major showdown with UPS over supervisors working. By threatening the company with a strike, Local 705 forced UPS to create more than 200 package car and part-time jobs and to curb future supervisors working violations.

The victory is the culmination of a multi-year campaign by Local 705 to take on supervisors working violations.

Over the last three years, business agents and shop stewards won a total of 4,000 to 5,000 grievances—including 700-plus grievance settlements where the company agreed to cease and desist from having supervisors work.

When supervisors continued to work despite the “cease and desist” agreements, Local 705 smacked UPS with a 72-hour notice that the union would strike UPS for its failure to abide by grievance decisions. The strike threat brought the company to the table to seriously negotiate the creation of additional jobs.

Local 705 has revoked a 72-hour strike notice for now and UPS has agreed to create 60 new package car positions and more than 60 part-time jobs.

The local has informed UPS management that the 72-hour can be reinstated if the company fails to continue to comply with grievance resolutions.

No Dime on the Dollar

“When you let a supervisor work, you might as well let them reach into your wallet and take money out because that’s what they’re doing,” said Bill O’Connor, a Local 705 package car steward.

“It doesn’t do anybody any good to settle supervisors working grievances for ten cents on the dollar. You’ve got to make the company pay,” O’Connor said.

After a supervisor refused to stop working and challenged O’Connor to “go file a grievance,” O’Connor and other shop stewards in the Palatine Center took action. They came to work early for six weeks and won $9,000 worth of supervisors working grievances.

“Our union backed us up. When we started to win, members took notice and so did the company. Slowly but surely we’re stopping supervisors from working,” O’Connor said.

Credible Strike Threat

UPSers in Local 705 are covered by a separate agreement from the national contract. The Local 705 contract gives the local the right to strike if UPS does not comply with grievance resolutions.

Other UPS locals do not have strike authority over company violations of local grievance settlements. However, the national contract gives local unions the right to strike if the company violates grievance settlements that are reached by the national grievance panel.

Local 705 has proven that this language can force the company to stop violations and create more jobs, including full-time positions—when our union is committed to a coordinated action plan for contract enforcement.

Local unions and the Parcel and Small Package Division can and should use the similar language in the master contract to bring the hammer down in areas where the company is serially violating supervisors working language.

January 10, 2008: “If you’re a steward always go up to a sup who is working and ask, ‘What’s going on? Why are you working?’ Or, ‘Do you need some help here?’” said Barb Ramirez from Local 206 in Eugene, Ore.

“At first this takes courage, but it gets easier and it must be done to demand respect for the contract. If you’re not a steward, you can still ask these questions. If the supervisor isn’t responsive, report the incident or go get the steward.”

A New York Local 804 steward says, “The most effective way to stop supervisors from working is to annoy the hell out of them and their bosses.

“If a part-time or pre-load sup is seen loading a truck, ask them why they are working. If they say they are covering for someone in the restroom or something similar, stand there waiting for their return and continually pester the supervisor asking if they need you to start up. (They usually walk away and everyone gets a laugh).

“If they don’t stop and no one returns, go to their supervisor (usually full time in charge of a boxline of trucks) and tell them you are going to start up and take over for the supervisor working. This will usually start up a discussion, possibly heated, about why he doesn’t need you to start or he will go to the supervisor working with you and tell them to stop.

“Progressively annoy the hell out of every supervisor/manager up the ladder so they know you are serious about the issue. This takes knowledge of where to find everyone involved and to be in early enough to do the legwork.

“Eventually you won’t have to go so high up the ladder to start working. Very importantly, you must be willing to start working before or after your normal working hours in order for this method to be effective because you will end up doing the work.”

December 27, 2007: The Internal Revenue Service is expected to fine FedEx Corp., of Memphis, Tenn., $319 million because the company's delivery drivers should have been classified as employees for federal employment tax purposes, the company said in a Securities and Exchange Commission filing Dec. 21.

In FedEx's Form 10-Q, filed quarterly with SEC, the company reported that an IRS audit team has "tentatively concluded, subject to further discussion," that FedEx delivery operators should be reclassified as employees for federal employment tax purposes, based on the agency's audit for calendar year 2002.

According to FedEx, company officials learned Dec. 20 that the IRS would assess the tax and penalties, and that similar issues are under investigation for calendar years 2004 through 2006.

In response to the fine, the company said, "we believe that we have strong defenses to the IRS's tentative assessment and will vigorously defend our position, as we continue to believe that FedEx Ground's owner-operators are independent contractors."

"Given the preliminary status of this matter, we cannot yet determine the amount or a reasonable range of potential loss. However, we do not believe that any loss is probable."

In another part of the filing, FedEx said it faces "increased regulatory and legal uncertainty with respect to its independent contractors" and the company "made changes to its relationships with contractors that, among other things, provide incentives for improved service and enhanced regulatory and other compliance by our contractors."

Additionally, the company said it expects further changes to its relationships with its contractors, which are expected to increase the cost of its operations.

Teamsters Applaud Fine

In reaction to the company's announcement, the International Brotherhood of Teamsters, which has been waging a long-running campaign to organize FedEx Ground workers, said it has long held that the workers were employees, and not independent contractors.

"What a great Christmas gift to FedEx Ground workers who have suffered under FedEx's illegal independent contractor scam," Teamsters General President Jim Hoffa said in a statement Dec. 21. "It's a fundamental fact that FedEx has been skirting the law, and the Teamsters welcome the IRS decision."

He added: "It's game over for FedEx's independent contractor scam."

FedEx could face additional penalties totaling more than a billion dollars after the IRS completes its investigation into the company's illegal employment practices, which continue, the union said.

By Karen L. Werner

December 26, 2007: The UPS national contract has been officially ratified after Teamsters in New York and Pennsylvania voted to approve their supplements.

UPS Teamsters in metro New York voted to approve the Local 804 Supplement by a 1,367 to 854 margin after UPS took several pension concessions off of the table.

Click here to read the full story at MakeUPSDeliver.org.