When the temperature hits three digits in the brown UPS truck Luis Rivera drives, he slows down his deliveries, which gets him in trouble, he says, with hisĀ boss.
āThey say,Ā āāWhy did you take so long?ā and IĀ say,Ā āāDude, itās hot. IĀ know when IĀ need to take aĀ break,ā explains Rivera, aĀ veteran delivery driver and Teamsters member in Central California, where heat waves areĀ common.Ā
Rivera ticks off the times that colleagues have gotten heatstroke and recalls the tragedy of aĀ young UPS driver,Ā 23-year-old Jose CruzĀ RodriguezĀ Jr., whoĀ diedĀ two years ago in Waco, Texas. His family alleges that the death was heat related and the Occupational Safety and Health Administration fined UPS $14,502Ā for that incident. The company isĀ appealing.
Amid complaints from workers like Rivera, the Teamsters have repeatedly told the delivery giant that it must air condition its delivery vehicles, especially in climates where the heat can soar. But the company repeatedlyĀ pushed back.
āWe always said we didnāt think that air conditioning was the solution for aĀ variety of reasons,ā says aĀ UPS official, who spoke on condition ofĀ anonymity.
So when UPS agreed in contract talks in mid-June toĀ beginĀ air conditioning its delivery fleet, some considered it aĀ sign that the unionāsĀ 340,000Ā UPS members and the worldās largest small package delivery service could find common ground, and that contract talks would not collapse into aĀ costlyāāāand potentially economically devastatingāāāstrike come the JulyĀ 31Ā deadline.
But the mood has become more complicated as they dance through a series of feints and parries.
The Teamsters walked out of contract talks onĀ Thursday, JuneĀ 22, and vowed not to return to the bargaining table until the company makes aĀ āārealistic and respectful economic offer.ā LeakedĀ detailsĀ of aĀ UPS counter proposalāāāthat were authenticated and posted byĀ The UpsurgeĀ (a podcast co-sponsored byĀ In These TimesĀ and The Real News Network)āāāindicate limited wage increases for part-timers and aĀ lower starting tier of wages for newĀ employees.
āOur committeeĀ &Ā more importantly our members donāt have the patience for bullsh*t proposals like the one @UPS gave today. If this company wants to negotiate aĀ contract forĀ 1997Ā working conditions, theyāre going to getĀ 1997Ā consequences. #GetFckingRealāĀ tweetedĀ Teamsters General President Sean M. OāBrien.
When the union returned several days later, they said the company had not come up with aĀ new package and they gave UPS aĀ week to come up with aĀ tentative agreement or aĀ final offer.
Then, on JuneĀ 28, OāBrienĀ tweetedĀ thatĀ āāDespite theĀ āāplay niceā public persona, @UPS has ignored our demands at the table. They want to keep screwing our members while making billions off their backs. Not f*cking happening. Weāre putting an end to the disrespect. You haveĀ 48Ā hours to provide the last, best, finalĀ offer.āĀ
Come Friday, JuneĀ 30, however, the union said UPS had made an offer withĀ āāsignificantā improvements on wage and economic issues andĀ had agreed to reach aĀ deal by JulyĀ 5. (A UPS source, speaking on condition of anonymity, would confirm whether or not they would stick to the JulyĀ 5Ā deadline.)
āUPS came back with real movement, but it isnāt enough. After they left the room, our national committee had aĀ long dialogue and the universal consensus was to continue our leverage campaign,ā Teamsters General Secretary-Treasurer Fred Zuckerman saidĀ in aĀ news releaseĀ on JuneĀ 30.Ā āāOne of two things is going to happen nextāāāUPS will come to terms on aĀ deal we can confidently recommend to our members or UPS will fail and the company will put itself on theĀ street.ā
Zuckerman also noted thatĀ āāthousands of UPS Teamsters are practice picketing right now across the country, showing UPS how serious we are about getting the best contract in ourĀ history.ā
In similar fashion to its other upbeat replies to Teamsters negotiationsā actions, the company simply saidĀ in aĀ news releaseĀ that it wasĀ āāencouraged the Teamsters are ready to continue negotiations and discuss our most recentĀ proposal.ā
Then, after movement at the negotiating table on Saturday, JulyĀ 1, OāBrien tweeted thatĀ āāHuge gains have been madeĀ todayĀ &Ā proud of our team. But to be clear, weāre not across that goal line yet. #MoreWorkToDoā
InĀ aĀ video updateĀ about the negotiations posted on JulyĀ 1, OāBrien talked about the importance of the JulyĀ 5Ā deadline, saying that it was necessary to reach aĀ deal by then so that Teamsters members across the country could have time to review the proposal, talk about it with their locals, and vote on theĀ process.
Contract talks are always aĀ drama built around facts and personalities, but this one is hyped more than most. It is almost aĀ showdown of sorts for OāBrien and UPS. OāBrien has raised the stakes for aĀ new five-year contract for his UPS members to aĀ higher level, saying recently at meetings and aĀ union webinar it can setĀ āāthe tone for the entire labor movement across thisĀ country.ā
āThere is no better organization to set that bar high than the International Brotherhood of Teamsters,ā heĀ toldĀ aĀ union meeting in April inĀ Boston.
He might beĀ right.Ā
Overall, the negotiations between the union (withĀ 1.2Ā million members) and UPS touch on hot button issues for the nationās long-suffering unions and millions ofĀ workers.
Union officials say they basically want to sweep aside two-tier wages, turn more part-time jobs into full-time work, and let workers reap some of the hefty revenue UPS gained during the pandemic and afterwards. The companyās totalĀ revenuesĀ increasedĀ 35% betweenĀ 2019Ā andĀ 2022, and the union likes toĀ advertiseĀ that the UPS CEO, Carol B. TomĆ©, is paid more in aĀ dayĀ āāthan aĀ UPS worker is paid in an entire year.ā Her totalĀ compensationĀ inĀ 2022Ā was $18.9Ā million.
Amid the unionās bluster, UPSās low-key mantra is that it is not angling for a fight, but just wants to be able to compete amid fierce competition.
āThereās only been one national strike and thatās aĀ strong indication that we will work together for aĀ resolution. We fully expect to realize an agreement before the end of our contract,ā says Glenn Zaccara, aĀ UPS spokesman.Ā
And then thereās OāBrienās need to certify the gutsy leadership style that he promised in his campaign to lead theĀ union.
A fourth generation Teamster from Boston, theĀ 51-year-old OāBrien is aĀ muscular former high school football player who often gleefully tosses rhetorical bombs at UPS, bringing cheering supporters to their feet. If UPS balks at aĀ good contract, he recently told union members in aĀ webinar thatĀ āāwe are going to put their assess on theĀ street.ā
A one-time high-ranking ally of former Teamsters General President James P. Hoffa, OāBrien reached out for support from the unionās long-time rival faction, Teamsters for aĀ Democratic Union (TDU), vowing hard-nosed bargaining and more of aĀ voice for the unionās rank-and-file, in his bid to lead the union. OāBrienās TDU-supported slate handily whipped aĀ Hoffa-aligned team inĀ 2021, though onlyĀ 15%Ā of the unionāsĀ 1.2Ā million membersĀ voted.
OāBrien initially was upbeat about the talks with UPS, bragging in the webinar that in the early round of contract talks, the union had won agreements onĀ 55Ā workplace issues. And the biggest victory, he boasted, was UPSā retreat on air conditioning in the delivery vehicles and their agreement to take other steps to fight theĀ heat.Ā
The question is now whether he and the union will reach aĀ compromise with aĀ company that, as UPS officials privately explain, is focused on cutting costs and preserving the flexibility that it needs to compete with lower wage, non-union competitors likeĀ FedEx.
āHe (OāBrien) shows up and keeps swinging out and they try to respond,ā says Brandy Harris, a part-time UPS worker from Seattle who serves on the negotiating committee. Itās the first-time rank-and-file workers have joined in high level contract talks, a change that took place at the unionās 2021 convention, stirred by anger over the unionās previous deal with UPS in 2018.
In aĀ campaign to get the Teamsters steamed up about the upcoming five-year contract negotiations with UPS, OāBrien traveled the nation to pump up support and the vote for aĀ strike passed withĀ 97% support. Richard Hooker, the head of LocalĀ 623Ā in Philadelphia, who did not vote for OāBrien, says, for example, that his roughlyĀ 5,000-member localĀ broilsĀ with anger towards the company because of recent layoffs and their failure to deal with grievances from members with hisĀ local.
āThey (UPS) are brutal right now because the members are standing up and fighting back,ā heĀ says.
Experts say the challenge for TomĆ©, UPSās CEO sinceĀ 2020, is keeping labor costs down while getting the union to let it continue with measures that will allow it to compete against other firms who have eaten into the UPS package deliveryĀ market.
UPSā share of the parcel delivery volume in the United States has dropped from just underĀ 40% inĀ 2014Ā toĀ 24% inĀ 2021, according toĀ researchĀ compiled by Radish Research on behalf of the TDU. The same research shows that labor costs for UPS account forĀ 55% of its total operating expenses as compared toĀ 36% forĀ FedEx.
To match competitorsā weekend deliveries, the union and company agreed in the last contract inĀ 2018Ā to create aĀ Tuesday through Saturday job that pays aboutĀ 13% less than for other full-time workers. That didnāt go over well with the unionās members, who voted the contractĀ down.Ā
UPS officials say that deal wasnāt enough to meet the weekend demand, however, and so the company has required aĀ sixth day or Saturday for some drivers. The union opposes forcing members to work sixĀ days.
Part-timers make up more than half of the unionās members at UPS, according to the union. But UPS officials say the figure is closer toĀ 30%. The union wants more of them moved to full-time jobs, and to boost their wage from the current starting level of $15.50Ā anĀ hour.
Meanwhile, inĀ 2017, UPSĀ steppedĀ up its hiring of aĀ new class of workers, called Personal Vehicle Drivers, to deal with peak season demand. That hasĀ angered local union officials who say they are taking away their membersā work. UPS would not say how many of these workers it hiresĀ annually.
UPS has projected itself aĀ friend of the union and especially as aĀ benefactor for its workers. But it needs aĀ deal from the union because as one UPS official explains,Ā āāThis is notĀ 1997. The industry has been disrupted in manyĀ ways.ā
Full-time workers earn an average $95,000Ā yearly and some earn up to $200,000, UPS officials say. Workers receive another $50,000Ā worth of benefits including free health care premiums. AboutĀ 72,000Ā union jobs have been added since the last contract, and UPS officials say they have not fought to keep union jobs out of its ranks as other high profile corporate giantsĀ have.
And now the companyās contract goals, adds the UPS official who asked to remain anonymous, is toĀ āātweakā the currentĀ contract.Ā
The unionās strike inĀ 1997Ā had aĀ devastating impact on UPSā finances. It suffered aĀ 98%Ā declineĀ in operating profits for that yearās third financial quarter, according to the TDU sponsoredĀ research.
Finances may be on UPSā mind again. In aĀ recentĀ SEC filling, the company said that the trend around their small package deliveries, which slowed in the first quarter of the year, are expected to continue forĀ 2023Ā and it has seen aĀ decline from its largest customer, identified by UPS officials asĀ Amazon.
The loss in finances and customers that UPS encountered from theĀ 1997Ā strike will weigh heavily on the companyās bargaining, says Alan Amling, aĀ former high-ranking UPS official who is now aĀ fellow at the University of Tennessee, Knoxville.Ā āāI think it (an agreement) will come right down to the wire,ā he says.Ā āāWe found at UPS inĀ 1997Ā that there was business that never came back,ā he adds, pointing out that the competition for UPS nowadays isĀ āāworse.ā
Similarly, Satish Jindel, whose firm SJĀ ConsultingĀ advises companies in the transportation and logistics industries, sees only losses for the union and UPS if they tumble into aĀ strike. UPS will lose business and the union will lose jobs.Ā āāThe only ones who will benefit are FedEx and the US Postal Service. ⦠Whatever they (Teamsters) want from the company, they can be as tough as they want, but they should do it now,ā heĀ says.
Replying to the unionās earlier demand for aĀ tentative agreement, UPS previously issued thisĀ statement.
āWe welcome the Teamstersā urgency to get aĀ ratified contract in place by AugustĀ 1. These negotiations affect our people, consumers and businesses across the country, which is aĀ responsibility we take seriously. Weāve been negotiating in good faith to reach an agreement with the Teamsters, and the progress we have made to date reflects our shared commitment to this process. We are prepared to work around the clock until we have aĀ new contract that includes wins for our employees, the Teamsters, our company and ourĀ customers.ā
As for the complaints from UPS workers like Rivera, who says he gets into trouble with his boss when he slows down on hot days, aĀ UPS spokesman replies that UPSĀ āāalways want our employees to be safe and we support their needs for rest and hydration on hotĀ days.ā
But back in Visalia, Ca. where heat is expected to reach aboveĀ 100Ā in early July, Rivera considers the companyās bowing to the unionās demand for air conditioning as aĀ good, but small step. Still, he doesnāt feel well about the companyās use of private drivers and thinks part-timers should earnĀ more.
Mindful of protecting himself on the job, he lugs an extra jug of cool water on hot days, wears aĀ neck gaiter, and urges new, younger workers not to worry about falling behind on their deliveryĀ time.
He tells them,Ā āāGuys, we need to go slow and take ourĀ breaks.ā
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