Subscribe to our free, weekly email newsletter!

Teamsters “two-man” meeting produces OK for UPS Freight pact

By John D. Schulz, Contributing Editor
January 07, 2014

UPS Freight, the nation’s fourth-largest LTL carrier, is close to securing a new five-year labor agreement with its 13,000 Teamsters in a deal that the union says will make those workers the highest-paid in the LTL sector.

Movement in these contract talks is significant because 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 local union leaders representing UPS Freight workers across the country endorsed a new tentative national agreement on Jan. 6. The new agreement provides what the union is calling “major economic improvements” and job security measures at a time when some LTL companies are cutting wages and benefits.

Details of the new tentative agreement with UPS Freight were outlined at the “two-person” meetings, in which two representatives from each local union participated. The endorsement by local union leaders clears the way for a membership ratification vote to be held Jan. 11-12.

Among the highlights of the new deal are:
-$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. 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.
While UPS Freight seems close to securing a long-term labor deal, negotiations continue at the larger UPS package unit. That pact, covering some 235,000 package employees, continues to be hung up over two supplemental agreements covering large UPS package locals.

About the Author

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

Slowing global trade and a bloated orderbook of large vessel capacity mean that container shipping is set for another three years of overcapacity and financial pain, according to the latest Container Forecaster report published by global shipping consultancy Drewry.

The NRF is calling for 2015 holiday sales to see a 3.7 percent annual gain to $630.5 billion, which comfortably outpaces the ten-year average of 2.5 percent.

On the heels of announcing it plans to acquire freight transportation and logistics services provider Con-way Inc. for $3 billion, XPO Logistics may be considering selling off Con-way Truckload, the company’s truckload arm.

The International Air Cargo Association (TIACA) has called on world leaders meeting at the United Nations this week to work together to find solutions to the ongoing migrant crisis in Europe

More than 20 U.S. port authority officials and their key staff, representing seaports from all four U.S. coasts, will gather on October 8 to meet with Congressional leadership to discuss the upcoming surface transportation bill and the U.S. Army Corps of Engineers’ navigation budget.

Article Topics

News · Teamsters · UPS Freight · All topics


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