A vast majority of unionized UPS workers in New York voted on Friday to authorize a strike, potentially leading to a work stoppage if an agreement between the package delivery company and Teamsters cannot be reached before their contract expires next month.
The Teamsters announced that 97% of the unionized workers supported the authorization, which was sought to strengthen their bargaining power during negotiations with UPS. However, it is important to note that a positive vote does not guarantee an immediate strike.
Teamsters General President Sean O’Brien emphasized that if the corporation fails to honor the contract that their hardworking members deserve, it would essentially be hurting itself. O’Brien stated that the most powerful tool their members possess is their labor, and they are prepared to withhold it to ensure that UPS acts in accordance with their demands.
The Teamsters represent over 340,000 UPS employees, which is more than half of the company’s workforce and forms the largest private-sector contract in North America. If a strike were to occur, it would be the first since a 15-day walkout by 185,000 workers significantly impacted the company twenty-five years ago.
Since the previous strike at UPS 25 years ago, the company has experienced significant growth and has become even more integral to the U.S. economy. In fact, UPS claims to deliver approximately 6% of the nation’s gross domestic product, highlighting the potential far-reaching implications a strike could have on the economy.
However, UPS emphasized in a prepared statement that the strike vote does not currently impact its ongoing business operations. The company stated that authorization votes and approvals are standard steps in labor union negotiations. Furthermore, UPS expressed confidence in making progress on key issues and remaining optimistic about reaching an agreement that benefits its employees, the Teamsters, the company itself, and its customers.
UPS workers remain deeply dissatisfied with the existing contract, which they believe was imposed on them in 2018 due to a technicality under prior union leadership. The contract established two distinct hierarchies of workers with differing wage scales, working hours, and benefits. The union’s objective is to have this hierarchical structure eliminated.
Alongside the concerns regarding part-time pay and excessive overtime, the union is also advocating for enhancements in driver safety. One specific issue that the union is highlighting is the absence of air conditioning in delivery trucks. The lack of proper air conditioning has been attributed to the unfortunate death of a driver and the hospitalization of several others.
In their negotiations with UPS, the union is seeking improvements in driver safety measures to address this issue. They are aiming to ensure that delivery trucks are equipped with adequate air conditioning systems, which would help mitigate potential health risks for drivers who spend long hours on the road.
By pushing for these safety enhancements, the union is striving to safeguard the well-being and health of UPS drivers, addressing a critical aspect of their working conditions.
On Tuesday, both the union and UPS announced that they had reached a tentative agreement regarding the installation of air conditioning equipment in more trucks. As per the agreement, UPS committed to adding air conditioning to small delivery vehicles purchased in the United States after January 1, 2024.
However, these changes will not immediately apply to vehicles already in operation. Instead, the union stated that two fans would be installed in all vehicles once a new contract is ratified. Additionally, the company agreed to include heat shields in certain vehicles and introduce air vents in all cars within 18 months of the new contract being finalized. According to UPS, approximately 95% of its existing package delivery fleet in the United States will undergo these enhancements under the agreement.
Kara Deniz, a spokesperson for the Teamsters, mentioned that around two dozen tentative agreements have been reached with UPS since the negotiations began in April. The current contract is set to expire on July 31.
According to global shipping and logistics firm Pitney Bowes, UPS delivers approximately 25 million packages per day, which accounts for around a quarter of all U.S. parcel volume. This is an increase of about 10 million parcels per day compared to the pre-pandemic period.
Since the onset of the pandemic in 2020, UPS has experienced a significant surge in profits, as millions of Americans increasingly relied on home deliveries. The company’s annual profits in the past two years have been nearly three times higher than the pre-pandemic figures. In 2022, UPS returned approximately $8.6 billion to shareholders through dividends and stock buybacks, and it projects another $8.4 billion for shareholders this year.
The Teamsters argue that this profit growth is largely attributed to the hard work of UPS drivers and warehouse workers who handle a wide range of items, including heavy packages like 50-pound bags of dog food, cases of wine, and prescription medications.
The contentiousness surrounding the current contract was a catalyst for workers rejecting a candidate supported by long-time union leader James Hoffa to lead the Teamsters. Instead, union members chose Sean O’Brien, who has strongly advocated for the Teamsters’ contract demands at UPS.
A victory for the Teamsters in negotiations with UPS could have implications for organized labor beyond the company. Notable labor organization campaigns have emerged in companies such as Apple, Starbucks, Trader Joe’s, and even among strippers at a Los Angeles dance club. The Teamsters are also attempting to organize workers at Amazon. Furthermore, the new president of the United Auto Workers has issued his strongest warning yet that the union is preparing for strikes against Detroit’s three automakers when their contracts expire in September.
