UPS and the Teamsters Union reached an impasse in contract negotiations last week, which could lead to a strike if the two parties don’t reach an agreement by the end of the month. The current contract, which has been in effect for five years, expires on July 31, and as of now, there’s nothing to replace it.
The Teamsters are digging their heels in, blaming UPS for the lack of progress on a new contract.
“This multibillion-dollar corporation has plenty to give American workers — they just don’t want to,” Teamsters General President Sean M. O’Brien said in a statement. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”
UPS released a statement of its own, encouraging the union to keep trying:
The Teamsters have stopped negotiating despite historic proposals that build on our industry-leading pay. We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table.
Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy. Only our non-union competitors benefit from the Teamsters’ actions.
We’re proud of what we’ve put forward in these negotiations, which deliver wins for our people. The Teamsters should return to the table to finalize this deal.
There’s a massive reason why UPS wants the Teamsters to come back to the table. One consultant says that the company could lose as much as 30% of its business in diverted volume if the drivers go on strike.
UPS handled about 18.6 million parcels in the U.S. per day in the first quarter. Under a contingency plan, it expects to handle 4 million parcels on its own. The balance of about 14.6 million parcels, most of which would be ground deliveries, would be subject to diversion.
Satish Jindel, president of consultancy ShipMatrix, said in a communique to FreightWaves that the 30% of volume that could be lost would be equivalent to more than 4 million parcels a day.
The biggest challenge UPS faces compared to the 1997 strike is more competition. Shippers have more options to get their packages to customers than they did 26 years ago if a strike handicaps UPS.
“Jindel envisioned a scenario in which large shippers divert lightweight parcels under 5 pounds that can fit in a mailbox to the Postal Service and the heavier parcels to FedEx,” reports Freightwaves.
Recommended: This ‘Socialist’ Metro Atlanta Mayor’s Sense of Entitlement Is Appalling
But there’s one organization that is reminding UPS drivers that they don’t necessarily have to strike. The National Right to Work Legal Defense Foundation released a notice on Monday that drivers can exit the union if they don’t feel like it is representing them.
“All UPS employees should know they have the right to resign their membership in the Teamsters union and continue to do their jobs,” the notice stated. “However, because federal law regarding union membership is complex and because union officials often threaten workers who refuse to strike with ruinous fines or other punishments, we recommend you read this entire legal notice before taking action. We also recommend you reach out to Foundation attorneys for free legal advice regarding your specific situation.”
The notice also informs drivers that “Employees who resign their membership (or are already nonmembers) have the right to go to work even if the union bosses order a strike.”
The foundation also advised UPS drivers that they have other protections if they live in states with right-to-work protections. “If you work in a state with Right to Work protections, you have a right to cut off all payments of dues and fees to the union if you don’t support its activities,” the notice says.
It also reminds drivers that “If you do not work in a state with Right to Work protections, you at least have a right to opt-out of dues payments for union politics, and may be able to avoid other union financial support.” That’s always welcome news.
At the end of the day, our supply chain is already brittle. Here’s hoping that UPS and the union can work things out, or our packages might take even longer to arrive.
Join the conversation as a VIP Member