Arbitrator Rules that Company Violated Retroactivity Contained in Extension Agreement
Kara DenizEmail: [email protected] Phone: (202) 624-6911
(WASHINGTON) – UPS Freight must pay back wages to potentially thousands of its workers after an arbitrator ruled this week that the company violated an extension agreement that was in place in 2018 before the national contract was ratified later that year. The case involves employees who were not at the top of the wage scale between August 1 and November 12, 2018, but who instead were in “wage progressions.”
It is estimated that the total amount of back wages owed in the case will exceed $2 million. The affected employees will receive differing amounts of back pay based upon each employee’s wage progression status and seniority date during the relevant time period. The specific awards will likely range between a few hundred dollars to upwards of $1,500.
In the March 11, 2020 ruling, the arbitrator held that the company violated the Extension Agreement and ordered the company to make employees in progression whole for the losses they suffered during the period August 1, 2018 to November 12, 2018 due to the company’s failure to implement the retroactivity provision of the Extension Agreement.
“We applaud the arbitrator’s ruling, which will provide our UPS Freight members with the wages they are owed,” said Kris Taylor, Co-Chairman of the Teamsters’ UPS Freight Negotiating Committee. “The company denied that it was required to pay retroactive wage increases for this period, but the arbitrator’s decision clearly shows that these workers are owed these wages. I want to thank our members for standing with us as we fought to win them the justice they deserve.”
Founded in 1903, the International Brotherhood of Teamsters represents 1.4 million hardworking men and women throughout the United States, Canada and Puerto Rico. Visit www.teamster.org for more information. Follow us on Twitter @Teamsters and “like” us on Facebook at www.facebook.com/teamsters.