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SANDY SPRINGS, Ga. – UPS Freight workers voted in favor of approving a new employment contract, thus avoiding the risk of a strike that could have affected shippers transporting their goods throughout the country.
However, it is possible that the labor crisis leading to the contract vote has a lasting impact on the freight sector of the company and some of its workers.
In the days leading up to Teamsters contract countdown Sunday, UPS, based in Sandy Springs, stopped picking up shipments from freight customers to clear its cargo network last Friday in the event of a strike.
UPS announced Sunday night that it would resume its normal freight business and that it would immediately start accepting the new volume of UPS Freight customers.
UPS spokesman Glenn Zaccara said workers would be recalled to work "as we receive orders from our customers". The number of workers recalled will depend on orders received, he said.
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The Teamsters contract covers approximately 11,600 workers at UPS Freight, which delivers bulk shipments on pallets, shippers to stores and other locations.
It remains to be seen the impact of the temporary disruption on UPS Freight's business.
"We hope to bring in as many workers as needed, depending on the needs of the company," Zaccara said. "There is a possibility" that could be lower than that of the previous workforce, he acknowledged.
The contract was approved with 77% of the votes cast, according to the International Brotherhood of Teamsters. The union said 84% of eligible members voted.
It was a second contract vote, after the freight workers at UPS in early October rejected a proposed first work contract. More than 62% of the votes cast were against this agreement. Both parties returned to the bargaining table and concluded negotiations on October 25, with one final offer, the best and the last.
The union told its members that the offer did not deal with all the issues raised by the workers but that it was proposing to put the collective agreement to a vote without a vote for or against, as these are only the consequences of this decision. "
UPS Freight workers had previously voted in favor of a strike and the Teamsters Union told members that if the contract was rejected, a strike could begin as early as November 12.
As a result, a week and a half ago, UPS asked its freight customers to make other shipping arrangements as the service could be disrupted.
"Because 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 as it waited for the results of the vote by contract.
Kris Taylor, co-chair of the National Freight Bargaining Committee by UPS for the Teamsters, called it "unprecedented action."
At a teleconference Sunday night, he told members that there would be a ramp-up period for the company to recover freight in its system.
After narrowly avoiding the risk of a strike, "a customer might have the impression:" Yeah, forget that, we are no longer interested, we do not want to be your customer anymore, "said Cathy Roberson, Logistics Analyst , who founded Logistics Trends & Insights in Atlanta. "At the same time, some customers might say to themselves," Oh, great, you handled that perfectly, so take our freight. "
Taylor told Teamsters members at UPS Freight that those who are not called back to work should apply for unemployment benefits "like any dismissal". apply for jobs in other companies.
"I hope that the company will quickly recover all its activities. I expect, however, that there are lost customers. It's a shame, but it's the boat we're in, "Taylor said.
The work contract approved on Sunday provides for some reductions in outsourcing – a key issue for workers – and would also improve certain conditions relating to retirement and vacation benefits.
However, some splinter groups in the Teamsters Union were looking for higher salary increases and more limits on outsourcing.
"Too many jobs in this business are outsourced," said Ken Paff, Teamsters' national organizer for a Democratic Union, a dissident group within the Teamsters. "And the wage increases, especially for the drivers of the road, have been infinitesimal."
The approved freight agreement Sunday is part of a series of ongoing work contracts at UPS.
A much larger contract – covering about 240,000 UPS drivers, parcel sorters, shippers and other people handling small parcels – did not get a majority vote, but was considered ratified by the Teamsters union after the low participation rate.
However, additional local agreements for this larger contract remain to be worked out. A local Chicago chapter representing more than 10,000 Teamsters UPS employees is demanding better terms, which could lead to unrest later this year if a contract is not concluded.
© 2018 Cox Media Group.
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