Subscribe to our free, weekly email newsletter!


Teamsters ratify rich new five-year UPS Freight deal

By John D. Schulz, Contributing Editor
January 13, 2014

UPS Freight, the nation’s fourth-largest LTL carrier, has secured five years of labor pace with ratification of a new five-year labor agreement by its 13,000 Teamsters.
 
The deal makes those workers the highest-paid in the LTL sector, earning about $70,000 base pay by the end of the contract, according to the Teamsters.
 
The vote was overwhelmingly approved by more than 2-to-1. The yes votes were 5,195 to 2,094 no’s as nearly 70 percent of UPS Freight Teamsters voted.
 
The original pact was rejected last summer by a 70-30 percent margin of the rank and file. The two sides went back to the bargaining table and appeared to have hammered out a down palatable to both sides.
 
Teamster “two-man” local union leaders representing UPS Freight workers across the country had endorsed a new tentative national agreement in the week prior to the rank and file vote.
 
The new agreement gives UPS Freight workers what the Teamsters called “major economic improvements” and job security measures at a time when some LTL companies are cutting wages and benefits.
 
Most notably, YRC Freight is struggling with its Teamsters members to approve a five-year continuation of 15 percent wage and benefit cuts for its 26,000 workers
 
Highlights of the new UPS Freight deal (which is separate from the recently approved UPS small package pact covering some 260,000 Teamsters) include:
-$2.50 per hour wage increases during the life of the five-year deal;
-improved pension benefits. After 35 years of service, pensions will rise to $3,700 a month, going to $3,900 in 2017;
-the current starting salary will rise to $18.75 from $16.10 hourly.
-creation of at least 2,350 new full-time jobs within the first three years of the deal;
-health insurance premiums will remain free for the basic health plan, and those in a buy-up plan will have their premiums reduced by 10 percent;
-job protections for road drivers, and a reduction in the use of non-union subcontracting on long-haul routes;
-obligates UPS Freight to recall all road drivers to full employment within their classification within 90 days of ratification at all terminals where subcontractors are currently used;
-more full-time dock jobs;
-stronger seniority rights, and vacation benefits for military veterans who will accrue vacation time while serving in the military; and
-reduction of health care costs for UPS Freight retirees

About the Author

image
John D. Schulz
Contributing Editor

John D. Schulz has been a transportation journalist for more than 20 years, specializing in the trucking industry. He is known to own the fattest Rolodex in the business, and is on a first-name basis with scores of top-level trucking executives who are able to give shippers their latest insights on the industry on a regular basis. This wise Washington owl has performed and produced at some of the highest levels of journalism in his 40-year career, mostly as a Washington newsman.


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Article Topics

News · UPS · Teamsters · UPS Freight · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA