Important union victory at UPS

Both trade union activists and the business press have been closely following the negotiations between UPS and the International Brotherhood of Teamsters (IBT) for some time. Then, on July 25, the big news came. The IBT had signed a tentative agreement with UPS. The purpose of this article is to explain what is in the new agreement and the attitude that socialists should take.

Key points of the agreement

Readers may find it helpful to look back at two previous articles on this website for some background on the main issues that divided labor and management.

1) 22.4 The 22.4 category of hybrid drivers will be abolished, and these workers moved to the Permanent Package Car Driver category. 22.4 workers were paid at a lower scale, could be assigned mixed inside/outside work assignments, and Saturday work. Ending this second tier was a central union objective and can be counted as a definite victory.

2) Part time wages. This was perhaps the most contentious issue of all. Part-timers generally start at around $16.20 per hour. Their starting wage will rise to $21 per hour at once, progressing to $23 per hour by the end of the five year contract. Currently employed part-timers will be making $25.75 per hour by the contract’s end. Those workers hired under market rate adjustments (special bonuses) will get all of the regular wage increases. There will be longevity increments for existing part time workers. These increases will be up to $1.50 per hour, in addition to the other increases. The union estimates that total current part timer increases will amount to 48% over the course of the contract.

3) General wages. The hourly rate will increase by $2.75 per hour, up to increases of $7.50 per hour by the end of the contract. Package car drivers’ top average wage will be at $49 per hour.

4) Heat. All package cars purchased after the end of this year will have air conditioning. Current vehicles will be equipped with two fans and a cargo section duct system.

5) MLK day. Martin Luther King Day will be a paid holiday.

6) Weekend Work. There will be no forced overtime on drivers’ day off. This was a central issue. The contract appears good for now. However, there have been rumors of small print that allows for a mid-contract reopener on this.

7) Personal Vehicle Drivers. These have not been prohibited outright by the new contract. Instead, bargaining unit members will have first priority on these jobs and will be guaranteed a minimum of eight hours pay. PVD work will only be permitted in the five week run up to Christmas.

8) New jobs. 7,500 new full time positions will be created.

What’s next?

The TA was unanimously agreed to by the bargaining team on July 25. Membership voting, which is electronic, will be held between August 3 and August 25. Under the new Teamster rules, the contract only needs a simple majority to pass or fail.

How should the new agreement be evaluated? Contracts can be judged in a number of ways.

First, did the union meet its main demands as presented in its original package? Certainly, great progress has been reached on 22.4 and part time wages. The ban on “sixth punch” or weekend work seems very positive, although the reopener could become a real problem. Basic wage increases are real. There seem to have been no concessions. So, the union did achieve its central bargaining objectives.

Secondly, how does the contract compare with what other unions are winning? The wage increases certainly compare favorably with other settlements. Abolishing the 22.4 tier is a real victory in the struggle to rid the labor movement of the poisonous multi-tier virus. There is a welcome lack of concessions. The contract does compare favorably to what other unions have recently achieved.

Thirdly, what does the membership think? Every contract always has its critics. The question is whether the rank and file are willing to undertake the sacrifices and risks necessary to take the struggle to the next level? If the answer is yes, there’s the possibility that more could be won. If the answer is no, then there’s not too much even the best leadership can immediately do. The key point is to gauge whether there’s the necessary support for successfully going to the next level.

It’s too early to say what the response of the Teamster rank and file is going to be. The Bargaining Team vote might provide an early clue. The team was much larger than usual this contract round. It includes some well-respected local militants. The vote to endorse the TA was unanimous. It’s unlikely that the whole team would have voted that way if they calculated that they were sitting on a seething bed of dissatisfaction.

There will certainly be a debate on the left on the contract. This article has shown that the agreement represents a real victory for the Teamsters union. Therefore, in my opinion, socialists should loudly and clearly call for a Yes vote.