Teamsters And UPS Reach Agreement On 55 non-economic Contract Concerns

 Teamsters and UPS reach agreement on 55 non-economic contract concerns :

The hard work has barely begun, but UPS Inc. and the Teamsters union have reached agreements on 55 noneconomic concerns in negotiations for a new master contract.

The installation of air conditioners in package cars and other vehicles bought after January 1, 2024, is one of the modifications. Another states that even though they could volunteer to do so, drivers cannot be required to work more than 60 hours in a 70-hour workweek.

A third mandates that before a supervisor goes on a ride-along with a driver, UPS (NYSE: UPS) must give the union 24 hours' notice. A fourth specifies where and when subcontractors can work while also requiring them to vacate the premises.

Additionally, if a person who might perform the function is laid off or working outside of their classification, UPS cannot subcontract the work.

The hardest aspect of the contract negotiations is the next step: salary, benefits, and a contentious two-tier pay plan. On Wednesday, the Teamsters delivered their economic proposal to UPS, making it clear that they want hefty pay raises.

If UPS believes it can impose "punishing rate increases" on the Teamsters as a result of higher labour expenses without fear of losing customers, Dean Maciuba, president of Crossroads Parcel Consulting's U.S. operations, advises caution. The main competitor of UPS, FedEx Corp. (NYSE: FDX), is reshaping itself to become a lower-cost service provider, which poses a "serious threat to UPS on a 2nd front," according to Maciuba in a LinkedIn post.

However, FedEx executives claimed earlier this week that they had not yet noticed a substantial impact from worries about a potential UPS strike.

Teamster General-President Sean O'Brien presented a two-road scenario during a webinar on Wednesday night, in which either UPS accedes to Teamster requests or the business refuses, in which case the union goes on strike on August 1, the day after the current contract ends. O'Brien stated, "We have to be united. We will leave everything on the pitch. We are establishing the tone for the nation's labour movement as a whole.