Watch Now


Teamsters reject UPS’ first economic counterproposal

Proposal involves minimal raises and effective wage cuts to COLAs, union charges

Teamsters ratify UPS contract. (Photo: Jim Allen/FreightWaves)

Call it a game of contract cat and mouse or not, but the Teamsters union strongly attacked UPS Inc.’s economic counterproposal as negotiations resumed in Washington to hammer out a new master contract.

The company’s counterproposal “included minimal raises and overall wage cuts to workers’ cost-of-living adjustments,” the union said Thursday. The Teamsters National Negotiating Committee unanimously rejected what the union called a “disrespectful” package.

The committee told UPS (NYSE: UPS) it will not meet again until the company makes a “realistic and respectful economic offer.” The union on Wednesday presented its initial economic proposal, which it called the “biggest, most lucrative financial proposal ever presented by a labor union.”

It includes wage increases for each year of the five-year contract, additional holidays and more paid time off, pension increases, and the end of a two-tier wage system that the union says penalizes those who lack seniority even though they are performing the same work as their senior counterparts.


“We are not accepting whatever crumbs these executives might throw our way. UPS has made plenty of money,” said Teamsters General Secretary Fred Zuckerman. “Our members have sacrificed everything to make them rich. We are demanding a real offer right now.”

“If UPS wants to negotiate a contract for 1997 working conditions,” said General President Sean M. O’Brien, referring to the year the Teamsters struck UPS for 15 days. “They’re going to get 1997 consequences.”

In a statement, UPS said that “as in any negotiations, reaching consensus on economic proposals requires serious and detailed discussion, as well as give-and-take from both sides. UPS is proud to provide the best pay and benefits package in the industry, and we plan to keep it that way. Both the Teamsters and UPS have publicly acknowledged the strong progress made to date, including the agreements reached on all non-economic topics. These negotiations affect our people, businesses and consumers across the country, which is a responsibility we take seriously.”

Earlier, the Teamsters had announced that it and UPS had agreed to 55 non-economic contractual issues.


46 Comments

  1. David Essex

    All UPS workers are important and essential, including the part timers. I’m a driver and will be speaking as a cdl driver. We as drivers have to deal with real and very dangerous drivers out on the roadways, it’s very stressful and mentally tiring. What makes it even worse for the drivers and our families is UPS forcing us to work longer days, longer sleeper runs and only one true day off. In team operations we have went from working 4 to 4 and half days to 5 days, with alot of these jobs coming in late on one day of all day the next and leaving out the next. The runs get longer and longer, accident rates have gone up and moral has gone down all because we are forced to work longer weeks with less family time. Upper management and CEO enjoy lucrative money, lifestyles and family time while the part timers, package delivery drivers and sleeper team drivers make less and work more with less time with our loved ones.

  2. Garry Leon Simmons

    Yes, UPS has to offer more, especially to the Part-time workers that do most of the work and have a certain time limit on getting it done. The last 3 years have been rough as a UPS worker… Dealing with Layoffs, shift losses and UPS playing games with the Teamsters.. We’ve been the face of their profits these last 3 years and not receive hazzard pay another slap in the face… Come August 1st, It’ll more than possible be a strike.. Workers are sick and tired of being sick and tried and time to make note of it..

  3. Tim

    The company got up to $26,000 per employee that worked through covid, so I believe the company should give all that money to each employee that worked through covid then at a minimum a 16% pay raise over the life of the contract with a bigger cola increase for our double digit inflation. The company has made record profits for the last 5 years, its way pass time the company compensate us employees that make sure the company is able to keep on making record profits. Without each UPS employee the company would be nothing and not be able to pay it’s CEO 30 Million in total compensation

  4. CDL DRIVER

    The typical American jobs want the worker to sacrifice while company and executives make huge profits, while the cost of living for all workers have constantly increased from housing, food, utilities, and everything to raise a family or to plan for a family. The Workers deserve to be a rewarded part of the UPS family because sooner than later technology will reduce the costs with more automated machines and autonomous drivers. The hours they work and those that drive in a increased danger of the every day roadway danger to roadrage and drivers being shot are putting their lives and their families provider at risk..not much risk for upper management on the golf courses.

  5. Matt

    As a ups employee I find historical that all arrivals that have been published are all about drivers. It is always about drivers. The only time warehouse workers are mentioned is by comments. The hart of this is the part time employees. Keep our insurance raise our pay then worry about the drivers. Ups made billions in profit, share that with your workers nd bet you would still make billions.

Comments are closed.

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.