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Why thousands of UPS Teamsters didn’t get a 70c raise

“All UPS Teamsters get a 70c raise.” Many Teamsters were told this, but now find out they got a 50c raise. Apparently, this contract is proof of an old adage, “figures don’t lie, but liars do figure”.

And figure they do. The company is well-aware that many of the 120,000+ part-time Teamsters are actually getting a 50c raise, and they bargained accordingly.

This is because the progression rate for many part-timers only went up 50c. This applies to sorters and pre-loaders as well as the “all others” category, and to part-time air drivers and to full-time air drivers in the progression.

Example: Tanya Teamster has a seniority date of November 1, 2011. After two years seniority under the old contract, in November 2013, her pay went up to $10.50. The two-year progression rate under the new contract is $11.00, only 50c more. Tanya was expecting a 70c raise, but got a 50c raise, because of the inadequate bump in the progression chart (See Article 22 of new contract).

The company and Ken Hall can say they didn’t lie. Tanya did get a retroactive 70c raise from her $10.00 rate on August 1, 2013, for three months, until her November 2013 anniversary date. She is entitled to three months of 70c retro pay. Then her pay went from $10.50 to $11.00. So she gets 50c retro pay since November, and a 50c raise over the old contract rate.

The problem is not new and goes deeper. The contract has too many wage rates, too long of a progression, and it works to divide Teamsters to the benefit of the company.

And this contract made the situation even worse: a longer progression period (four years) and a lower percentage pay rate during the progression.

Understanding pay rate increases can be difficult, especially when you are in the progression or you bid to another classification with a different rate of pay. It you have a split pay rate, it’s even more confusing.

Stewards and union reps need to understand this process and help Teamsters learn how it works, and to enforce the contract.

Here is a two page chart (one page for pre-loaders and sorters, and one for all others) produced by the International union on part-time pay rates under the new UPS contract.

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TeamCare Update for UPS Teamsters

How will the transition to new TeamCare coverage work for UPS Teamsters? We bring you the latest info and a sneak peak at upcoming mailings from TeamCare.

Starting June 1, over 140,000 UPS Teamsters will see a change in their healthcare coverage; most of them will be moving into TeamCare.

UPS Teamsters across the country mobilized to Vote No and fight healthcare cuts under TeamCare. The Vote No movement won some important benefit improvements.

With the International Union imposing the new UPS contract, TeamCare benefits will go into effect on June 1.

UPS Teamsters have questions. Here are some initial answers and a preview of upcoming mailings that TeamCare will be sending out over the next two weeks with information on enrollment, coverage, and more.

You can get more information online at www.myteamcare.org or by calling the TeamCare hotline at 1-800-323-9257

The information provided here is from TeamCare.

Enrollment if You’re New to TeamCare

UPS Teamsters who are being moved into TeamCare will automatically be transitioned effective June 1.

TeamCare will send every new participant a summary of who in your household is covered based on the records provided by the UPS plan. If that information is correct, you do not need to do anything.

If you need to add a dependent or change information about who in your household is covered, call 1-800-323-9257.

The line is open Monday to Friday from 9 a.m to 7 p.m Eastern time.

What If I’m Already Covered by TeamCare?

After members rejected a record 18 supplements and riders, Hoffa and Hall were forced to make improvements to TeamCare coverage for everyone, including for UPS Teamsters who are already in TeamCare.

UPS Teamsters who are already in TeamCare will be mailed a new Summary of Benefits and Coverage (SBC).

Despite the enhancements won by the Vote No movement, UPS Teamsters who are currently under TeamCare will still have substandard benefits compared to UPS Teamsters who are being moved into TeamCare from the company plan

TeamCare Mailings on the Way

UPS Teamsters who are moving into TeamCare will receive mailings from TeamCare, including:

  • Welcome Packet, including a Summary of Personal and Family Information provided to TeamCare by the UPS Plan.

If you are new to TeamCare, you will also receive a mailing the week of May 12 from Blue Cross with a membership ID card.  TeamCare will send out additional cards for other family members, and TeamCare ID cards to use for Dental, Vision and Pharmacy coverage in a separate mailing.

If you are already covered by TeamCare, you will not be mailed a new TeamCare ID card. Use your old card to get the new coverage.

TeamCare is holding conferences calls for members during May. Click here to see the Call Schedule and Call-In Information.

Your Network

You can check to confirm if your doctor or hospital is in the TeamCare network, at www.myteamcare.org

Blue Cross: For most members who are currently in a Blue Cross network under the company plan, TeamCare’s Blue Cross network is exactly the same.  The exceptions are for Teamsters who in Ohio who will now be in the Medical Mutual of Ohio network and Teamsters in Springfield, Ill. Who will not be in the PHCS network.

Aetna: If you are currently in Aetna, you will be moving to a new network but TeamCare says that 96% of Aetna hospitals and 91% of doctors are covered .

Reimbursement Check for Overpayment of Out-of-Pocket Expenses & Deductibles

TeamCare representatives indicated on a conference call for Teamster officers that Teamsters will be reimbursed if they already paid deductibles this year which exceed the new deductible and will be reimbursed for payments made which exceeded the improved out-of-pocket limits which are now $1,000 for an individual and $2,000 for a family.

This reimbursement does not apply to reduced co-pays. Those go into effect on June 1. The reimbursement check only covers payments that exceed the reduced deductibles and out-of-pocket limits.

TeamCare says they will get the information from the UPS plan within 90 days and issue the reimbursement checks at that time.  But TeamCare has not issued any written, detailed information on this reimbursement policy.

Retiree Healthcare

If you retired on or after January 1, 2014, your retiree healthcare coverage will be provided by TeamCare effective June 1.

Retirees and spouses will be covered until age 65.  So will child dependents until age 19, or until age 25 if they are full-time students.

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IBT says: Retro Checks in a Month

A memo sent today from Ken Hall to local unions states that retro pay checks will be issued on May 27, a month after the contract went into effect. The 70c raise should be in checks this week, according to Hall’s memo.

Click here to read the Memo.


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Wall Street Analyst: UPS got a cheap deal

Ken Hall promised, “The more they make, the more we take.” But Wall Street analysts say UPS will save $500 million in labor costs under the weak contract imposed by Hoffa and Hall.

Wolfe Research, specializing in analysis of the transport industry, has this to say about the new contract:

“UPS’s new 5-yr labor contract with the Teamsters is finally set to take effect on Fri. and we believe it’s a good deal for UPS, with only ~3% annual wage inflation versus ~4% in its past 2 contracts.”

The analysis continued: “UPS announced after the market on Thursday that its new five-year labor agreement with the Teamsters (which was approved on a national level in June of 2013) will go into effect today (Friday) after the national negotiating committee voted to override the last three chapters that had been holding out for supplemental amendments. We estimate wages and benefits for full-time employees will increase by a compounded average of  about 3.4% annually over the five  years of the contract, below 4.1% in the prior two deals in ‘08 and ‘02. We estimate wages will increase 2.3% annually (vs. 2.7% and 3.3% the past two deals), while benefits are expected to increase 5.2% annually. On an absolute basis, UPS will be paying very similar wage and benefit increases to the Teamsters; but, off of  a higher base, the percent increases are lower. Assuming 125K full-time Teamster members and roughly assuming $100K in average annual income (wages + benefits), 3.4% annual wage inflation would save UPS approximately $85M in labor costs in year one and closer to $500M in compounded savings by the end of the contract.”

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Hoffa-Hall’s Massacre of Right to Vote on Contracts

Hoffa and Hall have implemented the UPS contract, including concessionary supplements and riders that were overwhelmingly rejected by Teamster members.

According to an International Union memorandum, the UPS contract, including all supplements and riders, will go into effect on April 25 and the new Teamcare health coverage will take effect on June 1.

In the memorandum, the National Negotiating Committee repeats Ken Hall’s cover story: that the only issue holding up the rejected supplements is TeamCare. This is just a lie.

The Louisville Air Rider was rejected by a 94% No Vote because UPS’s second offer was even worse than its first offer and left unaddressed a whole series of pressing local issues: from members being forced to work off the clock to full-time jobs. (See Why Did Louisville Vote No?)

Of course, it is true that members in Louisville, Philadelphia, and Western Pa opposed cuts in health benefits, but that was just one of several issues at stake.

The International Union could easily have settled the supplements by telling UPS to bargain over the outstanding local issues. Instead, Hoffa and Hall have sided with the company and forced through concessions as political payback against the leadership of Louisville Local 89 and Vote No Teamsters.

Led by TDU, Teamster members fought for and won the Right to Vote on supplements and riders at the 1991 IBT Constitutional Convention to stop employers from imposing concessions in supplements and riders by pushing through a contract nationally.

Documents available: The IBT’s Memorandum of LiesThe IBT Letter to Members; the IBT “Talking Points” for officialsThe IBT Posting.

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Why Did Louisville Vote No?

The Louisville Worldport Air Supplement “final offer” from UPS management was rejected by a whopping 94% last week. That’s Teamster solidarity.

Why are the members there so united for a better contract?

Thousands of Teamsters at the Worldport are forced to work for free, up to 30 minutes or even an hour a day. They have to wait for a shuttle at the huge airport complex to get to their work station, before they clock in, then do the same at the end of the shift.

The shuttle system is inadequate and Teamsters, many of them underpaid part-timers, are the ones paying the price.

Local 89 members are also fighting for more full-time combo jobs. The Worldport employs more low-wage part-timers than any UPS hub in the country. UPS agreed to create more full-time jobs in other supplements, and Local 89 is demanding a reasonable number.

The company is counting on the International Union to force through a bad contract in Louisville as political payback because Local 89 President Fred Zuckerman has been a vocal critic of Hoffa and Hall.

At stake is a contract covering nearly 9000 Teamsters who are getting the shaft from UPS. Teamster politics needs to take a back seat.

Some Teamster officials have started a whisper campaign that Local 89 is “holding up the national contract” to continue a lost battle over healthcare. It’s true that Local 89 has called for enhancements in Teamcare coverage, so no members suffer any benefit reduction. But that is just one of several issues on the table.

UPS can easily settle the remaining supplements and ratify the national contract by bargaining over reasonable union demands.

When it comes to dealing with the company, all Teamsters should stand as one.

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Louisville UPS Teamsters: 94% say No

Louisville UPS Teamsters today voted No on the Louisville Air Supplement by a margin of 2,804 – 185, a whopping 94% No vote.

We call upon Hoffa and Hall to change course and back these Teamsters in their righteous stand for contract improvements: more full-time jobs, pay for all time worked, and no concessions on health care benefits.

Congratulations to Local 89 members and officers who are united for a good contract.

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Daily News: UPS Backs Down, Rehires 250 Drivers

NYC’s highest-circulation newspaper reports that after refusing to back down from its decision to terminate 250 drivers, UPS agreed to give them back their jobs. The Atlanta-based company faced criticism for its stance, but then reached an agreement with the union to re-hire the drivers.

Click here to read the full article at the NY Daily News.

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Campaign Stops 250 Firings at UPS in New York

UPS is rescinding the terminations of all 250 drivers according to a report posted by Teamsters Local 804.

The Union has also won the reinstatement of Jairo Reyes, the 24-year driver whose firing in violation of the grievance procedure led to a 90-minute walkout by Local 804 members on Feb. 26.

The Local 804 website reports that “All the terminations will be reduced to 10-day suspensions.” The union also agreed to pay undisclosed monetary damages to UPS.

When the company refused to come to the table to negotiate a settlement, Local 804 unleashed a community support campaign.

They collected more than 125,000 signatures on support petitions from Teamster members and public supporters.

Elected officials stood behind the Union and threatened to pull $60 million in contracts and deals that UPS has with the City and State.

Fired drivers reached out to their customers who spoke out on camera and in the press. UPS was flooded with thousands of phone calls and Facebook messages.

The grassroots mobilization brought UPS back to the table.

Ken Hall visited with fired drivers at Maspeth on Tuesday and mediated negotiations between Local 804 and the company on Wednesday.

UPS executives had insisted the firings were a done deal. Local 804 members proved otherwise by staying united, taking their case to the public, and mobilizing support.

For more information, go to www.teamsterslocal804.org

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UPS Faces Backlash in NYC

UPS has threatened 250 Local 804 members with termination. But politicians and the public are calling on the company to make a U-turn.

On Feb. 26, UPS fired a union activist in violation of the grievance procedure. Two hundred fifty Local 804 members walked off the job in protest. UPS issued notices of termination notices to all of them.

The company’s actions have drawn the ire of political leaders and the public.

On March 21, elected officials rallied with Local 804 members and delivered over 100,000 petition signatures to UPS management.

A resolution has been introduced to the City Council calling on UPS to revoke the terminations and settle the dispute with Teamsters Local 804.

U.S. Congressional Reps and State Senators and Assembly Members have issued support statements and contacted UPS management.

Elected officials point out that UPS does over $40 million in business annually with the City of New York and New York State and gets a $15 million break every year from the City in reduced fines on traffic tickets.

City Council leaders say they will call on UPS management to appear at an upcoming hearing and elected officials have called a Press Conference to press the case on the steps of City Hall.

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Support Growing for UPS Teamsters in NYC

UPS has put 250 drivers in New York on notice of termination for standing up to harassment and unfair discipline.

In response, elected officials and labor-community supporters are rallying behind the drivers. Political leaders are contacting UPS and a online support petition has been launched by community supporters.

Click here to sign the online petition to support Local 804 members who face termination.

On Feb. 26, UPS fired a package driver and long-time union activist and denied him his “Innocent Until Proven Guilty” rights under the Union contract.

It was the final straw for UPS drivers in Maspeth, Queens who are fed up with 12-hour days, relentless harassment, an epidemic of workplace injuries and a company that walks all over the contract and grievance procedure.

Teamster drivers walked off the job in protest. They returned to work after sending their message. Packages were delivered, the customers were serviced.

Local 804, which represents the drivers, sat down with the company to try to resolve the dispute and address the underlying problems.

Instead of reaching an agreement, the company retaliated against the 250 drivers and put all of them on notice of termination. The drivers remain on the job, but management claims it has the right to fire them at any time. The local is continuing to try to reach a negotiated solution.

Teamsters everywhere stand in solidarity with the drivers in Maspeth.

Click here to sign the online petition to support Local 804 members who face termination.

For more information and to show your support, go to www.Teamsterslocal804.org

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How to Enforce 9.5 Rights at UPS

Use your 9.5 rights in the contract to get penalty pay for excessive overtime and to get your load adjusted.

Teamsters for a Democratic Union has issued a 9.5 Rights Enforcement Packet to make it easier to enforce your protections against excessive overtime.

Here are the ABCs of enforcing your 9.5 rights. Download the 9.5 Rights Enforcement Packet for the detailed explanation.

The ABCs of Enforcing Your 9.5 Rights

Step 1. Document Your Excessive Overtime. Use the 9.5 Rights Documentation Form to document any work week in which you work over 9.5 hours on three days.

Step 2. Tell your Center Manager you want to be on the 9.5 List. Fill out and turn in a 9.5 Opt-In List Request Form. Make sure to bring your steward with you.

Step 3: Report a 9.5 Violation. Once you are on the 9.5 list, keep track of any work week in which you work more than 9.5 hours three times. Take your steward and report the 9.5 violation to the manager. Depending on the situation, an appropriate next step would be adjusting your load, triple time pay for hours worked over 9.5 hours in a day, or agreement to pay the triple time penalty on the next violation.

Step 4 (if necessary): If your center manager doesn’t resolve the problem, file a grievance. The grievance should state that management violated Article 37 by working a driver on the 9.5 Opt-In list more than 9.5 hours, three times in one work week. The remedy should state: Pay triple time for all hours worked over 9.5 during the week. Adjust drivers’ load. Cease and desist from working driver over 9.5. Make whole in every way.

Click here to download the complete 9.5 Rights Enforcement Packet which includes a guide to enforcing your rights and forms to use to document your case.

Are you having trouble enforcing your 9.5 rights or getting action on your grievances? Click here to contact TDU today.

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UPS Strike Vote Scare Tactic

The Hoffa-Hall administration is trying to intimidate UPS Teamsters with phony strike votes. But the scare tactics aren’t working.

Last Friday, UPS Teamsters in Local 710 Voted No by 73% to reject a weak contract, which was patterned after the national agreement. The Local 710 ballot stated it was a strike authorization vote. But there will not be any strike. Why?

Because the “strike vote” was only a scare tactic to try to coerce members into accepting a contract they didn’t want. Hoffa and Hall have threatened to use the same scare tactics on the next contract vote in Philadelphia and in Western Pennsylvania.

UPS wants no part of a strike especially coming on the heels of the company’s Christmas season PR problems.

Any strike would be devastating to UPS. Brown has an integrated delivery network and cannot function without the packages that go through Chicago, the Louisville Worldport hub or the Philadelphia Airport Hub.

This gives our union leverage. But instead of using a strike threat against the company, Hoffa and Hall are turning it around as a scare tactic against the members.

The scare tactic didn’t work with the 6,000 members of Local 710, across Illinois, Northern Indiana, and Davenport, Iowa. Now will Hoffa and Hall try the same tactic in Pennsylvania?

Western Pa, Philadelphia, Louisville to Meet

Ken Hall has directed the union negotiating committees Western Pa, Philadelphia and Louisville to meet in Ft. Lauderdale during the National Grievance Panel meetings next week to discuss their unresolved supplements or rider, and their outstanding issues.

It’s time for Hall to back up these Teamsters, instead of continuing to use lies and scare tactics against them.

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Local 710 UPS Teamsters Say NO

UPS Teamsters in Local 710 have overwhelmingly rejected the deal put forward by their local leadership and UPS management. The vote was 1827 No to 690 Yes.

Local 710 represents some 6,000 UPS Teamsters throughout Illinois (except Chicago), Northern Indiana and Davenport, Iowa, and has a contract separate from the national agreement.

Members feel that the deal too closely resembled the weak national contract (especially on health care) and was even worse in some ways: allowing a “two-tier” clause so that future hires (full-time and part-time) could be scheduled any five days and creating no new full-time jobs.

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UPS Update

Get the latest news on the third vote on the Ohio Rider, Hoffa-Hall threats against UPSers in Philadelphia and Western PA, the upcoming national grievance panel and the information brownout on the IBT-UPS pension.

UPS Bargaining: Brownout and Threats

The information brownout has reached a new low. UPS Teamsters in Ohio, who have rejected their rider twice, will get a third ballot mailed to them on February 27, without any input or even information about changes to UPS’s offer.

Meanwhile, Hoffa and Hall are using threats and rumors to try to get Teamsters in Western Pennsylvania and Philadelphia to accept their supplements, which members have decisively rejected twice.

Hall’s office is spreading the word that the third vote may be a strike vote, and if members vote to strike, the IBT will not sanction extending picket lines beyond Pennsylvania.

Click here to read more.


UPS National Grievance Panel Set for March

The UPS National Grievance panel will meet in Fort Lauderdale, March 3-6.

The National Grievance Panel Docket is a whopping 116 pages. Subcontracting, the failure of UPS to post and replace full-time 22.3 jobs, and supervisors working are some of the most common violations cited.

Click here to read more.


UPS Pension Limbo Continues

Teamsters who are ready to retire are being held hostage by UPS and the Hoffa-Hall administration.

One of the selling points of the UPS contract was that 50,000 full-time UPSers who get a substandard pension from the IBT-UPS Pension Plan would get a $200 increase, retroactive to August 1.

Steve ThomasBut UPS Teamsters like Stevie Thomas, who call the IBT- UPS Pension Plan about retiring are being told a different story.  Plan reps are still telling members that they have to wait until after the contract is ratified to get the pension increase.

Click here to read more about why they won’t help Stevie retire.

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