High-stakes negotiations between UPS and the Teamsters started this week. Catch up on the issues union leaders have vowed to strike over.
- UPS has around 330,000 unionized employees who handle packages and drive delivery trucks.
- Their contract expires July 31 and negotiations started this week in Washington, D.C.
Teamsters General President Sean O'Brien and his team met with UPS negotiators this week for the first of many sessions that will take place in the next three months. It's off to a rocky start as O'Brien has declared that not enough progress has been made on the supplemental contracts — local agreements which have been under negotiation for most of the year.
UPS said that the parties have traditionally worked on the national and supplemental contracts simultaneously and are ready to negotiate.
The coming months will likely be rife with more friction back and forth. In order to avoid a promised strike, O'Brien has said he wants better pay for part-time workers, an end to a lower-paid classification of weekend drivers, and a list of other demands. He also won't accept a contract that is "cost-neutral" for UPS — meaning it keeps the expense to the company the same, he said.
This is UPS CEO Carol Tomé's first union negotiation and she has said that the parties are not as opposed as they seem.
"I would submit that a win-win-win is very achievable because we are not far apart on the issues," Tomé said on the company's February earnings call.
She will address investors again on Tuesday to share the company's first-quarter results. Parcel volume is down across the market, but so far Tomé has been able to keep profits buoyed by focusing on packages with strong margins and eschewing those without.
Her juggling skills will be tested Tuesday and in the months ahead. Bone up on the issues the Teamsters have threatened to strike over with the stories below.
Set the scene
Go deep on the issues
UPS' drivers union is threatening to strike over 6 key issues
Zoom out to the big picture
UPS soared through the pandemic — but its biggest challenge in 25 years is still to come
FedEx warns it won't bail out UPS customers at the last minute if drivers strike
Gig labor could have challenged FedEx and UPS. Now it's making them stronger.