Joint Council 7 TEAMSTER

Volume 58, Number 3

Report on UPS negotiations and next steps

A group of Local 315 UPS Teamsters after their vote to ratify the UPS contract and Nor Cal Supplement

After months of negotiations, the National UPS contract has been ratified and the Nor Cal Supplement and Sort Rider have been passed by a 2- 1 margin. However, at press time, approximately 15 supplements have not been ratified and the National Agreement cannot be finalized until all the supplements are ratified.

The major sticking point is the health and welfare program for those UPS members who had been covered by the UPS Health and Welfare Plan being moved to the Central States Health and Welfare Plan. Negotiations are continuing. The IBT and UPS have entered into a contract extension until negotiations are finalized with a 30-day written notice by either party to terminate the contract extension if necessary.

The Nor Cal Committee is leading the way for the future. Anyone can point out the good and bad about any contract, but reality has to set in. That reality is the non-union competition—specifically Fed-X and On Trac Trucking. Fed-X’s shipping rates are close to UPS, however the wage and benefit packages are lower by a large margin. On Trac Trucking is a real problem; their shipping rates are about half of UPS and Fed-X and the wage and benefit packages are way below Fed-X. This creates a problem in keeping customers.

The Nor Cal Committee has proposed a supplemental dues increase of $.10 per hour on a one time basis, which will create about $1.5 million dollars per year. This money will be administered by the Nor Cal Committee and spent by Joint Council 7 to organize the non-union companies that are attempting to take our jobs. The plan is to hire an organizer who will develop and oversee an organizing program utilizing active shop stewards and members from UPS. The program has to be approved by the members. We look forward to meeting with you to discuss how to make this program successful and fully transparent.