Teamsters Union Approves UPS Work Agreement – Despite 54% Negative Vote

United Parcel Service Inc.'s union has ratified a five-year labor agreement for employees, although a majority of the members who voted rejected it.

The 54% "no" vote was not enough to block the agreement according to the union's rules, since less than half of the members went to the polls, the International Brotherhood of Teamsters said in a statement. With such a low turnout, two-thirds of the workers would have had to oppose the deal for the rejection to be valid, the union said.

"Thus, the national framework agreement has been ratified," said the Teamsters.

The approval of the contract despite the opposition of the majority raises the risk of a worsening conflict between factions within the Teamsters, which could cause labor unrest at UPS. The uncertainty comes as the courier company is eager to reduce the cost of home deliveries and cash in the booming e-commerce. UPS strives to keep costs competitive with its competitors, including FedEx Corp. and Amazon.com Inc., which launches its own delivery service.

The Teamsters leaders, despite the contract's approval, stated that they "fully intended to require that UPS return to the bargaining table to meet a certain number of member concerns ". Only 44% of the 209,000 eligible union members voted.

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UPS said it would be "a meeting with Teamsters in the near future to discuss next steps." The Atlanta-based company is already strengthening its operations for the busy holiday season.

A separate agreement covering UPS freight workers has been rejected with a significant turnout and can not be ratified, said the Teamsters.

The popularity of the Teamsters leadership and General President Jim Hoffa has decreased. In a general election in 2016, Hoffa barely resisted Fred Zuckerman for his position. Zuckerman and the Teamsters for a Democratic Union strongly criticized the agreement.

For more details on the union vote at UPS, click here.

For drivers, the contract ratified by union management creates a new hybrid class of weekend drivers who also load parcels and earn less than current parcel drivers.

"You would create a permanent lower class of drivers who would be paid less and less likely to do the same job," said David Levin, leader of the Teamsters for a Democratic Union.

Home deliveries are a drag on efficiency as drivers typically handle fewer parcels per stop than in businesses. UPS plans to spend more than $ 20 billion over the next three years until 2020 for the purchase of new aircraft, a technology that saves the workforce. 39, work and other infrastructure.