Please ensure Javascript is enabled for purposes of website accessibility
Stalemate: UPS Contract Talks Break Down With Each Side Blaming the Other
gvw_ap_news
By Associated Press
Published 10 months ago on
July 5, 2023

Share

Contract negotiations between UPS and the union representing 340,000 of the company’s workers broke down early Wednesday with each side blaming the other for walking away from talks.

The Teamsters have imposed several deadlines for United Parcel Service negotiators to make their “last, best and final” offer to its unionized workers in recent days. Union officials said Wednesday that UPS “walked away from the bargaining table after presenting an unacceptable offer,” specifically with regard to the economic package.

UPS Claims Teamsters Abandoned Negotiations

UPS told a different story. The package delivery company said it was the Teamsters who abandoned negotiations, “despite UPS’s historic offer that builds on our industry-leading pay.”

“We have not walked away, and the union has a responsibility to remain at the table,” the Atlanta company said in a prepared statement.

Stalemate in Talks as Contract Expiration Approaches

Whichever the case, talks are at a stalemate with the end of the contract — midnight on July 31 — rapidly approaching. Teamster-represented UPS workers voted for a strike authorization last month and union chief Sean O’Brien said last week that a strike was imminent.

The Teamsters say any tentative agreement would need to be endorsed by its national committee before being disseminated and voted on by membership. The union has said it will not negotiate past the expiration of the current contract.

Shares of United Parcel Service Inc. fell more than 2%. Shares in rival FedEx rose slightly.

The Teamsters represent more than half of the company’s workforce in the largest private-sector contract in North America. If a strike occurs, it would be the first since a 15-day walkout by 185,000 workers crippled the company a quarter century ago.

UPS has grown vastly since then and become even more integral piece of the U.S. economy, with consumers relying on swift delivery of most essential home items. Small businesses who rely on UPS could also be left looking for alternative shipping options if the company’s remaining workforce wasn’t able to meet demand during a strike.

The company says it delivers the equivalent of about 6% of nation’s gross domestic product. That means a strike would carry with it potentially far-reaching implications for the economy, particularly the supply chain, which has just begun to recover from pandemic-related entanglements.

Progress in Negotiations Prior to the Stalemate

Negotiations had appeared to be progressing in recent weeks, with tentative agreements on a number of issues since national contract talks began in April. The sides agreed to scrap the two-tier wage system for drivers who work weekends and earn less money, which was a major sticking point.

The union also said it also reached a tentative agreement to establish Martin Luther King Jr. Day as a full holiday for the first time and end unwanted overtime on drivers’ days off.

Last month, the union and the company reached another tentative agreement to equip more trucks with air conditioning equipment. Under that agreement, UPS said it would add air conditioning to U.S. small delivery vehicles purchased after January 1, 2024. Existing vehicles wouldn’t get that upgrade, but the union said they will have other additions like two fans and air vents.

Annual profits at UPS in the past two years are close to three times what they were pre-pandemic. The company returned about $8.6 billion to shareholders in the form of dividends and stock buybacks in 2022, and forecasts another $8.4 billion for shareholders this year.

RELATED TOPICS:

DON'T MISS

Boeing’s Financial Woes Continue, While Families of Crash Victims Urge US to Prosecute

DON'T MISS

Police Tangle With Students in Texas and California as Wave of Campus Protest Against Gaza War Grows

DON'T MISS

Meet the Valley Republican Predicting a November Win Over Esmeralda Soria

DON'T MISS

Wired Wednesday: Construction Workers on 2018 Fresno Unified Project Still Not Paid

DON'T MISS

Slumping California Risks Losing World’s ‘5th Largest Economy’ Title

DON'T MISS

Ukraine Uses Long-Range Missiles Secretly Provided by US to Hit Russian-Held Areas, Officials Say

DON'T MISS

Upward Bound: Edison High’s Garcia Headed to Johns Hopkins

DON'T MISS

Boxing Star Ryan Garcia Wants to Meet Netanyahu, Pledges Aid for Gaza Children

DON'T MISS

Fong Won’t Debate Boudreaux, but We Get Hot Topic Answers Anyway

DON'T MISS

Legislation Pandering to Tribal Casinos Is a Bad Bet for Fresno Cardroom Employees

UP NEXT

Slumping California Risks Losing World’s ‘5th Largest Economy’ Title

UP NEXT

Ukraine Uses Long-Range Missiles Secretly Provided by US to Hit Russian-Held Areas, Officials Say

UP NEXT

About 1 in 4 US Adults Over 50 Say They Expect to Never Retire, an AARP Study Finds

UP NEXT

General Motors Reports Strong First-Quarter Profits as Prices Help Offset Small US Sales Dip

UP NEXT

Wall Street Rallies and Adds to Its Hot Start to the Week

UP NEXT

Did Fresno Unified’s Biggest Contractor Not Pay Its Workers? Company Still Gets Millions After Civil Penalty

UP NEXT

Express Files for Chapter 11 Bankruptcy Protection, Announces Store Closures

UP NEXT

Man Sets Himself on Fire Outside Trump Hush Money Trial Court

UP NEXT

Real Estate Experts Talk Fresno’s Economic Future. Are Tough Times Ahead?

UP NEXT

Wired Wednesday: How High Will the Price of Gold & Silver Go?

Wired Wednesday: Construction Workers on 2018 Fresno Unified Project Still Not Paid

5 hours ago

Slumping California Risks Losing World’s ‘5th Largest Economy’ Title

6 hours ago

Ukraine Uses Long-Range Missiles Secretly Provided by US to Hit Russian-Held Areas, Officials Say

8 hours ago

Upward Bound: Edison High’s Garcia Headed to Johns Hopkins

Local Education /

9 hours ago

Boxing Star Ryan Garcia Wants to Meet Netanyahu, Pledges Aid for Gaza Children

9 hours ago

Fong Won’t Debate Boudreaux, but We Get Hot Topic Answers Anyway

9 hours ago

Legislation Pandering to Tribal Casinos Is a Bad Bet for Fresno Cardroom Employees

10 hours ago

About 1 in 4 US Adults Over 50 Say They Expect to Never Retire, an AARP Study Finds

11 hours ago

Biden Signs a $95 Billion War Aid Measure With Assistance for Ukraine, Israel and Taiwan

11 hours ago

Ancestry Website to Catalogue Names of Japanese Americans Incarcerated During World War II

12 hours ago

Boeing’s Financial Woes Continue, While Families of Crash Victims Urge US to Prosecute

Boeing said Wednesday that it lost $355 million on falling revenue in the first quarter, another sign of the crisis gripping the aircraft ma...

4 hours ago

4 hours ago

Boeing’s Financial Woes Continue, While Families of Crash Victims Urge US to Prosecute

5 hours ago

Police Tangle With Students in Texas and California as Wave of Campus Protest Against Gaza War Grows

CA District 27 Assembly candidate Joanna Garcia Rose
5 hours ago

Meet the Valley Republican Predicting a November Win Over Esmeralda Soria

5 hours ago

Wired Wednesday: Construction Workers on 2018 Fresno Unified Project Still Not Paid

6 hours ago

Slumping California Risks Losing World’s ‘5th Largest Economy’ Title

8 hours ago

Ukraine Uses Long-Range Missiles Secretly Provided by US to Hit Russian-Held Areas, Officials Say

Local Education /
9 hours ago

Upward Bound: Edison High’s Garcia Headed to Johns Hopkins

9 hours ago

Boxing Star Ryan Garcia Wants to Meet Netanyahu, Pledges Aid for Gaza Children

MENU

CONNECT WITH US

Search

Send this to a friend