UPS Contract Nearer to Implementation as Teamsters Back Supplemental Pacts

By Rip Watson, Senior Reporter

This story appears in the Dec. 16 print edition of Transport Topics.

Teamsters employees at UPS Inc.’s package division last week approved several more key supplemental agreements, moving the largest transport industry union contract closer to final implementation.

In the latest round of voting on side agreements that were previously rejected, union members voted by a 3-1 margin to back the Western supplement and a margin of about 2-1 for the Southwest rider. The results were posted on the Teamsters website on Dec. 10.

The revotes were done on side agreements, known as supplementals and riders, which were rejected when the national contract that covers 235,000 full- and part-time workers was approved in June. Once all 17 initially rejected side agreements are approved, the entire contract can take effect, delivering a $3.90 per hour wage increase over five years.



The favorable votes “are a testament to the strength of the national agreement,” union spokeswoman Leigh Strope told Transport Topics on Dec. 11.

“We are pleased that all of these local agreements that were out for vote have been approved,” UPS spokesman Andy McGowan told TT.

“We continue to make progress and work with the Teamsters to finalize the remaining local agreements.”

The package contract, originally scheduled to expire July 31, has been extended, while side agreement balloting continues. Those agreements cover details such as working conditions and treatment of job assignments.

“There was some initial confusion about changes to health-care benefits,” Strope said. “But now that the facts are out, members have a good understanding about their new quality health-care plans and recognize that they will maintain strong coverage at very little cost to them. That’s being reflected in the voting.”

There are six remaining outstanding supplements. They include the Louisville Air District, rejected by 90% of voters the first time around, and the Ohio supplement that now has been rejected twice.

In addition, the Western Pennsylvania supplement requires a revote, as well as three riders that affect a single local.

In total, 17 of 35 side agreements were rejected during the balloting on the national contract. Since then, 11 have been approved, including several other smaller deals in ballots counted last week.

Among the other recent approvals were supplements or riders in the Michigan and Philadelphia areas as well as local side agreements.

A separate UPS Freight agreement was rejected by about 70% of less-than-truckload workers in June and hasn’t yet been put to a new vote. Earlier this month, the union said in a Web posting that talks between the union and the company occurred in the week ending Dec. 6.

At the meeting, the two sides discussed “outstanding issues that members have identified as concerns. Another meeting is expected soon as both sides work toward an agreement that can be brought to the [Freight] membership for a vote,” the union’s statement said.

“The contract provides significant wage increases, excellent health-care benefits at a very low out-of-pocket cost, new full-time jobs and job security during a time of economic uncertainty for many U.S. workers,” Strope said.