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United Parcel Service
Inc.
UPS 0.92%
asks customers to define alternative shipping plans in the event of a strike in its smaller freight division, where unionized workers will vote on the final offer of the company's contract next week.
UPS Freight workers rejected a temporary contract last month and vote for an updated offer from the company. An extension of the contract expires on November 12, after which the 11,000 members of the Teamsters could go on strike. The Teamsters have already authorized a strike, which would be UPS's first stop since 1997.
UPS is already preparing for a disruption. The company informed shippers that the last day of cargo pickup was next Wednesday and that it could only guarantee shipments of land freight next Thursday. The company aims to empty its network of all its freight by the end of the week.
"As we have no guarantee against a work stoppage, we can not afford to put the volume of our customers at risk of being stuck in our system," said UPS spokesman Glenn Zaccara .
UPS Freight is the industrial trucking unit of the company. It mainly handles heavier consignments of goods and bulk shipments transported on pallets, such as retail products for stores. It is the fifth largest operator in a sector called "lighter landfills", in which truckers combine shipments from different customers on the same truck, according to SJ Consulting Group Inc. The business figure of the UPS division rose to $ 2.6 billion in the partial shipment market in terms of shipments.
A work stoppage in this division would disrupt a trucking market where manufacturers and retailers are already struggling with reduced capacity and higher shipping rates, while the economy is pushing more goods across the border. logistics networks.
It would also force shippers to scramble to find other carriers able to process their shipments, probably at a higher price.
Nevertheless, a strike in this division would be much less serious for UPS – and for the entire US economy – than for its small parcel system, which represents 243,000 parcel drivers, sorters and other workers who help deliver goods. millions of parcels. daily to homes and businesses.
These workers ratified their interim bargaining agreement last month in a controversial manner. While over 54% of the votes cast rejected the reduced-price contract, the Teamsters said the turnout was too low to block the deal. Union rules require that a contract be rejected by a two-thirds majority of the votes cast when less than half of the members vote. The participation rate was 44%.
UPS and the Teamsters are still negotiating additional local agreements before finalizing this contract, which will last until mid-2023.
"Customers can remain confident that UPS is ready to continue serving their small package customers throughout the holiday season and beyond," said Zaccara.
The provisional freight contract was rejected by 62% of voters with about two thirds of the votes cast. Trade union demands include tighter restrictions on labor contracting, higher wage increases and the removal of restrictions on eligibility for retirement and vacation benefits.
UPS has agreed to make changes to certain applications, but the Teamsters bargaining committee has stated that the company "refused to address a number of key issues for our members."
"This company made the decision to give one last, best and last bid and stop taking freight," said the Teamsters in a press release released Thursday. "All of this could have been solved if the company tackled the main issues at the negotiating table."
The company said in a statement: "UPS has made an offer that it believes should be ratified. This is an offer that rewards our employees with some of the best salaries and benefits in the industry and rewards them for their contribution to the success of the company. Zaccara said UPS believed the latest offer "should be ratified."
-Jennifer Smith
contributed to this article.
Write to Paul Ziobro at [email protected]
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