UPS's Initial Economic Counter Proposal Is Rejected by Teamsters

 UPS's initial economic counterproposal is rejected by Teamsters

 

Call it a contract cat and mouse game, but UPS Inc.'s economic counterproposal came under heavy fire from the Teamsters union as talks to hammer out a new master contract continued in Washington.

According to the union, the company's counterproposal "included small raises and overall wage cuts to workers' cost-of-living adjustments." What the union referred to as a "disrespectful" offer was overwhelmingly rejected by the Teamsters National Negotiating Committee.

UPS (NYSE: UPS) was informed by the committee that it will not meet again unless it provides a "realistic and respectful economic offer." The group unveiled its inaugural financial proposal on Wednesday, describing it as the "biggest, most lucrative financial proposal ever presented by a labour union."

In addition to pay raises for each year of the five-year deal, it also eliminates a two-tier compensation structure that the union claims penalises workers who lack seniority despite doing the same work as their senior colleagues and adds more vacations and paid time off.

"We won't take any scraps these executives may toss our way. According to Teamsters General Secretary Fred Zuckerman, UPS has made a lot of money. "Our members have given their all to make them wealthy. Right now, we're demanding a genuine offer.

General President Sean M. O'Brien remarked, "If UPS wants to negotiate a contract for 1997 working conditions," alluding to the year the Teamsters went on a 15-day strike against UPS. They will experience the repercussions of 1997.

According to UPS, getting an agreement on economic solutions "needs serious and thorough conversation, as well as give-and-take from both sides. The best salary and benefits package in the business is something UPS is proud to offer, and we intend to maintain it that way. The agreements struck on all non-economic issues have been acknowledged in public by both the Teamsters and UPS, who have both made significant progress to this point. We take this obligation very seriously since these agreements have an impact on our citizens, businesses, and customers all around the nation.

The Teamsters had previously declared that it and UPS had reached a consensus on 55 non-economic contractual concerns.