Contracts

May 16, 2013: The Local 89 UPS stewards, representing 9,300 Teamsters at the Worldport air hub and various other UPS buildings in Louisville, today voted unanimously to recommend rejection of the UPS contract and the Central Region Supplement.

The stewards backed the Local 89 Executive Board in their Vote No recommendation.

The stewards pored over the agreement line-by-line for over four hours, and found little to support and lots of bad language. Stewards who were on-duty at the time of the 9:00 a.m. meeting were given union business leave to attend.

The healthcare giveback, and vague information about the new coverage, was a major concern. But there were many others, including the insufficient changes in harassment, 9.5, Surepost and technology language.

The Central Supplement also got a cold reaction from Local 89 stewards. Throughout the Central Region, members have been unimpressed with the proposed Supplement’s failure to improve the grievance procedure or prevent the company’s use of “all other serious offenses” language as a catch-all to unfairly fire Teamsters.

The Louisville Air Rider is not settled and the union and the company remain far apart.

The Local 89 website has published a report on the contract.

UPDATE, May 6, 2013: The information brownout will be lifted and the tentative agreement with UPS will finally see the light of day on Tuesday, May 7.

There will be a meeting for representatives from every local union to review the proposed tentative agreement on Tuesday, May 7.

Due to past legal victories, TDU will receive the tentative UPS contract and make it available to all members.

TDU has obtained more initial details on the UPS tentative agreement, including some information on wages, pensions and health benefits.

Click here to download an updated bulletin of the proposed contract details.

There will be a meeting for representatives from every local to review the proposed tentative agreement on May 7. Due to past legal victories, TDU will receive and make available to the members the national agreement and all supplements and riders at that time.

Wages: Wage increases are as follows.

$.70/hour on August 1, 2013

$.70/hour on August 1, 2014

$.70/hour on August 1, 2015

$.40/hour on August 1, 2016 and $.40/hour on Feb. 1, 2017

$.50/hour on August 1, 2017 and $.50/hour on Feb. 1, 2018

The progression has been increased from three-years to four-years so new full-timers will have to wait longer to reach full union scale.

The International Union has claimed a “substantial increase” in starting pay for part-timers. It will be $10 an hour in the tentative five-year deal, an amount that could again drop below minimum wage in some areas by August 2018.

Health Benefits: All members presently in the company-based health plan are being moved out, into the Central States Health and Welfare Fund or other funds. Benefits there are being enhanced to match current benefits.

Retiree Health Benefits: Members in company-based plans will face much larger payments for retiree health care. Instead of paying $50/month to cover a retiree and spouse, it will go to $100, then $200 and $300/month by the third year of the contract ($150 for a retiree alone).

Pensions: An important issue for UPSers in the Central and Southern Regions, and the Carolinas is a substantial increase in the IBT-UPS pension plan, where 44,000 full-time Teamsters receive the lowest retirement benefits in the country.

The 30-year pension in the IBT-UPS plan will reportedly go to $3,200/month in 2014, with a second increase to $3,400/month that does not take effect until 2017.

For all other Teamster funds, UPS will increase pension and Health and Welfare contributions by $1/hour more each year. With inflation, this is actually a savings to UPS of 10¢ an hour each year over the last contract.

Contract Language: As previously reported by TDU, the new agreement has language changes on harassment and excessive overtime.

Instead of 10,000 new full-time 22.3 jobs, the deal provides for 2,350 (500 in 2014, 500 in 2015, 1,350 in 2016). Will the 22.3 jobs the company has eliminated be restored? Technology, discipline over “dishonesty” and subcontracting are other critical areas where language needs to be carefully reviewed.

UPS Teamsters will get to review all language changes and vote separately on the national contract and their supplement (and in some cases a third vote on their local rider).

Almost all supplements have now been settled except the Louisville Air Rider, where members are asking for protection of bargaining unit work, ending unreasonable unpaid time going through airport security and shuttle bus to work areas, and protection of jobs and seniority rights.

TDU and Make UPS Deliver expect to post the national and all supplement changes sometime on Tuesday, May 7.

We urge all UPS Teamsters to carefully review the proposed agreements, attend local union contract meetings, ask questions, and cast an informed vote.

It’s Your Contract — Have Your Say. Click here to speak out and share your comments or questions. We want to hear from you.

March 22, 2013: The contract buzz is on the company’s demand that UPSers pay for their healthcare and that’s exactly how management wants it.

Early contract negotiations were supposed to deliver a contract that deals with harassment. Instead, the contract buzz is about the company’s demand that we pay for our healthcare.

It’s understandable to a point: the company’s healthcare demands are outrageous. They’re also a trap.

UPS management knows that members would vote down any early deal that includes paying for our healthcare. But the more the issue is on the table, the less negotiations will focus on members’ issues, including harassment.

When UPS demanded the giveback, Ken Hall held rallies and announced that the Union would walk away from early negotiations if the company did not take the proposal off the table.

That was a month ago. But instead of following through and making the company withdraw the giveback, the International Union has asked every local union to pass out the company’s proposal to stewards and members.

Why is the IBT circulating the company’s proposals instead of the Union’s?

Ken Hall has promised that UPS Teamsters, “will not pay $90, $9 or 9 cents” toward our healthcare. And he will keep that promise. Or members would vote to reject the deal.

The real danger in the UPS healthcare scare is that it is being used to distract members from the core issues that affect us everyday: production harassment, excessive overtime, understaffing, technology, trumped up discharges for “dishonesty” and other harassment.

UPS made record profits last year. No concessions is not enough.

Hoffa and Hall promised that harassment, pensions, and full-time jobs were priority issues. We need to make UPS deliver on our issues—instead of talking about theirs.

Excessive Overtime

“We need tougher 9.5 penalties in the national contract that requires management to adjust our loads.

“Pay penalty is great. But it doesn’t stop the 11-hour days or get me home at night to see my family.

“UPS preaches safety and keeping your body healthy, but they keep us out until 9 or 10 o’clock at night so we’re eating dinner late and not getting enough sleep. It’s a total contradiction.

“We’re a big, profitable company and our customers are happy. We need to hire more people and get drivers home at a decent hour so we can have a more balanced life.”

— Rich Pawlikowski, Package Driver, Local 804, New York

More Drivers Means Less Harassment

“We need clear enforceable language that makes UPS create more driving jobs in centers where that is needed to cover the work.

“Management has been cutting and combining loads, putting more work on the drivers and keeping us out until all hours of the night. This is no accident. The company is doing this to maximize profits and they don’t care about us.

“Vague language that management has to ‘maintain a sufficient workforce’ isn’t going to cut it. That gives UPS way too much wiggle room.”

— Steve Spann, Package Driver, Local 413, Columbus, Ohio

Technology Harassment

“The number-one way drivers are harassed is from Telematics and GPS. It’s only going to get worse with ORION which is like Telematics on steroids.

“In the last contract, Ken Hall gave UPS the loophole to use technology to discipline us in cases of ‘dishonesty.’ UPS has twisted and exploited that language. It’s got to go.

“The National Negotiating Committee has proposed the right language for Article 6: that UPS can’t discipline drivers based solely on information from technology. Ken Hall needs to stick to his guns this time, not cave in, or drivers are going to pay the price.”

— Matt Maini, Package Driver, Local 251, Providence, R.I.

SurePost—More Jobs or Just More Harassment?

“The International is demanding that more SurePost packages come on the package car for final delivery. That’s the right thing.

“But are we going to get more jobs out of this or just more packages? I am already working 10, 11 and even 12-hour days. Drivers who file 9.5s are harassed, intimidated and unfairly scrutinized and disciplined through telematics.

“An agreement on SurePost that doesn’t make UPS create more driving jobs is just going to mean more boxes, higher stop counts, longer hours and more harassment.”

— Martin Labut, Package Driver, Local 243, Detroit

Part-Time Pay Increases

“In 1982 starting rate for part-timers was $8. This has gone up 50 cents in the last 30 years, and that’s absolutely ridiculous! If wages had been adjusted for inflation we’d be making over $19/hr today. I’m not saying we need that much now, but we’re looking for big increases.

“Raising the wage is going to help us keep good employees. Right now there is no incentive to work without decent pay and having to wait so long for benefits.

“We also need to know we’re taking care of the UPSers who are here already. The last time starting pay was raised existing part-timers also got a bump in their pay. We need that again.”

— Paul Trujillo, Preload, Local 651, Lexington, Ky.

March 15, 2013: UPS is making record profits in a tough economy by using technology, harassment and excessive overtime to pile more work on drivers.

Hoffa and Ken Hall kicked off bargaining by saying there would be no agreement unless UPS addresses this production harassment. But they have kept a strict information Brownout on what protections we’re actually fighting for.

UPS Teamsters need to carefully review any proposed new contract and judge for themselves if it includes the protections we need to fight harassment and excessive overtime.

Strengthen 9.5 Rights

The 9.5 language only works if drivers are free to go on the list without retaliation and management has to address violations by adjusting drivers’ loads. Penalty pay is not enough.

The number one way to stop exploding stop counts and 11-hour days is to make UPS hire enough drivers to cover the work.

So far, Hall has only talked about vague contract language that would allow drivers to file a grievance if UPS does not “maintain a sufficient workforce.”

This is modeled on the language that is supposed to stop supervisors working and we all know how toothless that is.

UPS promised two years ago to address over-dispatch by hiring more drivers. It’s time to get that agreement in writing.

The contract needs clear triggers that make UPS create package jobs in centers with repeated 9.5 violations.

Penalties for Harassment & Retaliation

Hoffa and Hall have promised new language that protects members from threats or retaliation for going on the 9.5 list, reporting an injury, and going on comp.

To work, these protections need to be backed up with penalties that make management pay a price for violations. Otherwise, the language will be as unenforceable as the “respect and dignity” clause.

Protect Members from Technology

In the last contract, Hoffa and Hall gave UPS the right to terminate members using only information for technology in cases of “dishonesty.” UPS has abused the loophole. It’s time to close it.

Article 6, Section 6 should ban all discipline that is based solely on information from technology: GPS, Telematics, ORION, IVIS or any successor system.

Don’t Be Fooled Again

This year’s contract negotiations is not the first time Ken Hall has talked tough on production harassment.

During the last International Union election, Hall organized a national sticker day against Unfair Production Standards.

Afterwards, Hall held a conference call for UPS shop stewards and announced that UPS management had agreed to curb production harassment, stop assigning supervisors to ride with drivers who file 9.5 grievances, and to review their dispatch records and hire more drivers to match the number of drivers employed when volume was previously at this level.

“We told UPS we are not going to tolerate harassment of our members. You can’t use the economy as an excuse,” Hall told stewards.

UPS management’s assurances—and Hall’s tough talk—turned out to be empty promises.

The contract is our chance to get enforceable harassment protections in writing. Don’t be fooled again.

March 12, 2013: Ken Hall says the Union is working on “creative solutions” on healthcare as contract negotiations resume in Florida.

The International Union held rallies nationwide to draw a firm line against Teamsters paying toward our healthcare.

Ken Hall even threatened to walk away from the bargaining table if UPS didn’t withdraw its proposals that Teamsters pay for our healthcare.

The Company’s proposals are still on the table, however, as bargaining continues. And Hall has reported that the Teamster National Negotiating committee is “working hard to come up with creative solutions.”

Hall didn’t elaborate on what kind of “creative solutions” in his report to local unions.

Teamsters members are not expected to pay a cent toward their health insurance premiums in the new contract.  But Hall could be negotiating coverage changes for active and retired UPSers in company Health Plans.

Increases in the cost for retiree healthcare in these plans are also expected.

Harassment

Hall reports that the Committee told UPS that they will not be able to move forward on negotiations without movement from the company on harassment issues.

But the Union did move forward and put economic proposals on the table for the first time. The International Union still has not told the members what harassment proposals are on the table or what the Union is fighting for to:

• protect drivers from harassment and discipline from UPS technology

• strengthen 9.5 rights so drivers’ loads are adjusted

• require UPS to hire additional drivers in centers where more drivers are needed to reduce excessive loads and unwanted, excessive overtime

• other harassment issues

Economic Proposals

The International Union has put its initial economic proposals on the table, including substantial increases in benefit contributions.

Also on the table is an increase in starting pay for part-time workers. There is still no word on wage increases for current part-timers.

The last time the starting wage went up for part-timers in 1997, existing part-timers got an extra $1 wage increase to narrow the gap between part-time and full-time wages. That gap is bigger today than ever.

Bargaining Timeline

Negotiations will be held in St. Petersburg Florida through Thursday and are scheduled to continue through the end of the month.

Tentative agreements have been reached on many supplements, including some of the larger ones, but many remain unsettled.

The information Brownout on what’s in these deals continues—even where supplemental negotiations are completed.

Click here to read the negotiations update Ken Hall sent to UPS and UPS Freight locals.

Stay informed and stand up for change in our union. Join Teamsters for a Democratic Union today.

February 25, 2013: Teamsters Local 705, which represents some 9,000 UPS Teamsters in the Chicagoland area, has opened bargaining with UPS. Local 705 has a separate contract, and is not part of the national UPS agreement being negotiated.

The powerful Chicago local has a bargaining committee led by secretary treasurer Juan Campos and other officers, and includes a number of rank and file stewards and two retirees as well.

The initial union and company proposals are posted on the local’s website. These proposals will be changed and supplemented as bargaining progresses.

February 20, 2013: Ken Hall and the International Union have dug in and said NO to members paying toward our healthcare premiums. Find out where we stand on other key contract issues.

Technology / Dishonesty

The company has dug in at the bargaining table on “dishonesty.”

UPS wants to preserve the loophole in Article 6 that enabled management to terminate drivers for “dishonesty” based solely on information from technology. Ken Hall says UPS is abusing the language.

The International Union and the company are at a stand off on the issue. Who will blink first?

Harassment / 9.5 Language

Production harassment is a signature issue of the negotiations. Volume is growing but full-time driving jobs are not. UPS is just piling more work on us.

The International Union has negotiated language that says the company will “maintain a sufficient workforce.” Unresolved grievances could be taken to arbitration.

This is a positive step but too vague to protect drivers from exploding stop counts, nonstop harassment and excessive hours.

Compare this proposal with the existing Article 22.3 language which requires the company in black-and-white to maintain all full-time combo jobs created under the 1997 and 2002 contracts.

This language is much stronger—and is backed up by a 22.3 arbitration victory we won after the strike.

But UPS has gotten away with eliminating thousands of 22.3 full-time jobs. The violation has gone on for years. While some 22.3 vacancies have been filled; UPS has not filled anywhere near the 20,000 positions required by the contract.

The lesson is clear: package car drivers need clear language, stiff penalties and strong enforcement mechanisms to make UPS create more package jobs or the company will violate the contract and the harassment and excessive loads will continue.

SurePost

The Union reportedly has agreement on three restrictions on SurePost:

1. Packages can be no larger than 12 inches by 12 inches by 12 inches.
2. SurePost can only be offered to get new business or to keep existing business from leaving.
3. If other carriers like FedEx end their version of SurePost service than UPS must do the same.

The Union’s opening contract proposals also called for “a program to ensure that where package car drivers are delivering ground packages at the same address or to nearby addresses of SurePost packages, bargaining unit members will deliver the packages instead of the Post Office.” (Article 26, New Section 4)

But the company had already started introducing this service—SurePost Redirect—for the purpose of making more profits, not protecting Teamsters.

Part-Time Wages

The Company has proposed eliminating the $1 per hour premium for preloaders. That’s not the kind of change in pay that part-timers have in mind.

Ken Hall has promised to negotiate an increase in starting wages for part-timers. What’s less clear is what the IBT has in mind for existing part-timers.

In 1997, starting pay for part-timers was increased by 50¢ an hour and every part-timer got an extra $1 “catch-up” increase, on top of the other contractual raises, to narrow the pay gap between part-time and full-time pay.

Sixteen years later, part-time starting wages are at an all-time low and the wage gap is bigger than ever. Members need and expect significant increases in starting pay and catch-up increases.

More To Come

These are just a few of the main contract issues. The International Union has not put any economic issues on the table. Pensions, wage increases and new full-time jobs have yet to be discussed.

And other key language issues remain to be dealt with, including subcontracting where the International Union is bargaining the issue simultaneously for UPS, UPS Freight and UPS CSI.

The International Union has done a good job informing members about the company’s demands that we pay for healthcare and the Union’s clear stand on the issue. As a result, members are energized and united.

It’s time for the IBT to lift the Brownout so members know what we’re fighting for on harassment, 9.5, subcontracting, full-time jobs, technology and other priority issues. It’s hard to back our union and pressure the company when we’re kept in the dark about what what we’re fighting for.

Let’s unite around the issues and Make UPS Deliver a fair contract.

February 19, 2013: UPS and UPS Freight Teamsters turned out in big numbers at contract rallies this last weekend, demonstrating members are ready to stand up for our contract.

Teamsters jammed packed halls in Indianapolis, Toledo, St. Louis, Seattle, Oakland and Ontario, Calif.  The largest of the rallies in Southern California drew nearly 2,000 Teamsters.

More rallies are scheduled for next weekend, including in New Jersey, Baltimore, Boston, Philadelphia, Atlanta, Orlando and Tampa.

“It felt great to be with a couple thousand UPS Teamsters united in solidarity. Part-time, package car, feeders, everyone,” said Local 396 member Alex Tenchavez who attended the rally in Southern California. “We need to keep the pressure on the company. Let them know we will not settle short like the last contract.”

Ken Hall repeated his pledge that the Teamsters would make no givebacks to a company that’s making billions and said that UPS Teamsters would not pay “$90, $9 or 9 cents” toward our healthcare premiums.

But while UPS’s demands for healthcare givebacks drew a crowd, it’s production harassment and related issues that drew the most comments from members.

“We’ve been waiting for five years to negotiate new contract language to deal with subcontracting, harassment, full-time jobs, 9.5, and dishonesty,” said John Youngermann who went to the rally in St. Louis. “This is our chance and we need to come away with improvements we can sink our teeth into.”

UPS was making record profits going into the last contract negotiations. But the union agreed to water down members 9.5 rights and give UPS the right to fire drivers based solely on information from technology in cases of “dishonesty.”

This time, the Hoffa administration is talking tough.

“When dealing with a bully, you can run away, or you can walk up to him and punch him in the face. That’s what we’re going to do to UPS,” International Vice President Sean O’Brien told a crowd of nearly 1,000 Teamsters in Seattle.

That sounds good. But while the International Union has talked in specifics about healthcare and retiree healthcare, the reports on harassment and language issues have been kept deliberately vague.

“The rally pulled members together to draw a line in the sand that we’re not going to accept concessions on healthcare,” said Jeff Mullins of Indianapolis Local 135. “We need to keep up the pressure and draw the same line in the sand on our other contract issues.”

“Members need to know what we’re fighting for on 9.5, technology, harassment, full-time jobs, part-time wage increases and other key issues,” Mullins said.