UPS Teamsters Approve National Contract, UPS Freight Tentative Agreement Rejected
A majority of UPS Teamsters voted to approve a new five-year national contract that contains significant wage increases and other improvements.
The vote on the contract, the largest collective bargaining agreement in North America, was 34,307 to 30,202. However, 17 local supplements and riders to the national agreement did not pass.
Separately, UPS Freight Teamsters rejected their proposed five-year national agreement with UPS Freight by a vote of 1,897 to 4,244.
Highlights of the new national UPS contract, which covers about 240,000 union-represented employees, include:
Wage increases totaling $3.90 per hour over the five-year term of the agreement;
An increase in the starting part-time wage rate;
The creation of 2,350 full-time jobs;
Protections from harassment and intimidation by supervisors;
Protections for employees who choose to work fewer hours in a day;
Guaranteed vacation time for employees coming back from military leave; and
No employee contributions for monthly premiums for health insurance.
But a provision in the contract that changes the health care plan for some UPS Teamsters led to the rejection of the supplements and riders to the national agreement.
The provision moves 140,000 UPS Teamsters from their current UPS health plan into a new plan that will be jointly administered by the Teamsters Union and employers. That change was made because UPS said it planned to cut health benefits that members currently receive in the company plan and raise the cost to employees significantly.
The Teamsters Union and UPS have agreed to extensions of the current UPS Freight national master agreement and the current UPS national master agreement and all supplements, riders and addenda. The extensions do not have specific end dates, but can be terminated by either side with a 30-day notice.
For UPS, all of the current agreements will remain in place until the supplements that did not receive a majority of votes have been revoted and agreed to. For UPS Freight, the current contract remains in place until the agreement has been re-voted and accepted by members.
Any increases in wages, pensions and health and welfare contributions that were agreed to in both contracts will not take effect until the re-voting occurs and there is approval by the members.
The Teamster negotiating committees responsible for the UPS supplements and riders that were not approved by a majority of voting members will be talking with the members in their areas.
The Teamsters Union also is scheduling meetings to engage the company in further negotiations to achieve members’ objectives.
As for UPS Freight, the National Negotiating Committee is scheduling negotiations with the company to address members’ concerns.