Teamsters are expected to weigh in on an agreement with the freight division later this week.
UPS said it is halting the pickup of less-than-truckload freight in advance of a vote by Teamster members on a new contract.
UPS posted a notice to customers on its website last week saying, “To help you plan to maintain business continuity while we do not have a contract extension, please note that UPS Freight can only guarantee delivery of ground freight (LTL) shipments through [Thursday], after which we recommend you seek alternate arrangements.”
UPS said it concluded bargaining with the Teamsters on Oct. 25 and that union members are scheduled to vote on it between Wednesday and Sunday.
There are about 11,000 employees in the UPS Freight, the company’s over-the-road, less-than-truckload company.
UPS said it believes the offer should be ratified and that it “rewards our employees with wages and benefits at the top of the industry,” but added without a contract extension, the last days for ground freight pickup were:
• Monday for three-day shipping commitments;
• Tuesday for two-day shipping commitments;
• And Wednesday for one-day shipping commitments.
UPS added that a small package national master agreement with the Teamsters was ratified in October and that shippers “can remain confident UPS is ready to continue to serve our small package customers throughout the holiday season and beyond.” There are approximately 250,000 part-time and full-time employees in the UPS small package operation.
In a third-quarter earnings call with investment analysts last month, Richard N. Peretz, the chief financial officer of UPS, said, “UPS Freight revenue increased more than 11 percent on gains in pricing and tonnage. Freight remains focused on serving middle-market customers and improving yields.”
UPS Freight halting LTL pickups ahead of contract vote
