Frequently Asked Questions (FAQs)
Q: Both parties reached a tentative agreement early – why is that?
A: We believe the handshake agreement is a testament to what can happen when two parties work hard to reach an agreement that recognizes the needs of both sides of the negotiating table. While these have been tough negotiations, both sides have listened and negotiated with good-faith and respect. Ultimately, that paved the way to reach an early handshake agreement.
Q: Who is part of the contract?
A: There are about 260,000 Teamster-represented employees covered by the agreements. The small package agreement covers approximately 243,000 part-time and full-time employees in the small package operation. The UPS Freight agreement covers more than 11,000 represented employees at our over-the-road, Less-Than-Truckload company.
Q: When do the current UPS/Teamsters small package and freight labor union contracts expire?
A: August 1, 2018. However, the IBT and UPS have agreed to an indefinite contract extension to resolve remaining issues. The extension provides the company and the Teamsters additional time to wrap up talks on remaining issues. While the extension does not have an end date, UPS and the Teamsters have expressed confidence in their ability to resolve remaining issues, building on the progress already achieved with current tentative national and local agreements.
Q: What’s next?
A: The Teamsters will hold internal meetings on August 8, 2018 and then schedule voting.
Q: What does a contract extension mean?
A: UPS and the Teamsters are in the final stages of completing negotiations. The contract extension will allow us to finalize those negotiations and give our employees a complete agreement they can vote on. Throughout the contract extension, it’s business as usual at UPS.
Q: Why did the Teamsters call for a strike authorization vote if it isn’t planning to strike?
A: This is common. Many labor unions call for a strike authorization vote during contract negotiations. With tentative agreements and extensions in place, we are shifting our energy to ratification.
Q: What is happening with Freight?
A: UPS and the Teamsters have reached a tentative agreement on a new collective bargaining agreement for UPS Freight employees covered under a separate contract than our small package employees. The five-year agreement, which is subject to ratification, covers about 11,000 Teamster-represented UPS Freight employees.
Q: What does UPS want to get out of these contract negotiations?
A: We want a contract that rewards our employees for their hard work, recognizes how our industry is changing and allows us to remain competitive in the marketplace. We’re confident that by working in partnership with the Teamsters, we can reach these goals.
Q: What is going on with the IBT negotiations with UPS’s air mechanics?
A: We are under federal mediation with our UPS Teamster mechanics and expect to reach an agreement. The Teamsters Local 2727 negotiating committee and UPS have agreed on many issues, and continue to meet to resolve any remaining issues. UPS is committed to a fair and equitable contract with our mechanics that provides competitive wages, and retirement and healthcare for our employees, while protecting the interests of the company, customers and shareholders.
Q: Do you think having a union makes UPS less competitive compared to FedEx or other competitors? Are FedEx workers better able to meet the needs of customers?
A: Our personnel are a differentiator for UPS, and we value their role in serving UPS customers. We know they work hard and that’s why we wanted to ensure they are rewarded for their contribution.
Q: What is UPS doing to help address the multi-employer pension plan crisis?
A: UPS has been and is committed to working cooperatively with stakeholders to identify a long-term solution that is in the best interest of employees and the company. UPS’s solution has gained support among affected plans, union leaders and among some legislators.
Q: Is UPS investing its savings from tax reform into UPS employee wages and other compensation?
A: Tax savings will allow us to accelerate investments in our people, technology and facilities, leading to significant direct and indirect job creation. UPS has already planned to create more than 14,000 operations jobs driven by facility investments and new service programs announced in 2016 and 2017. UPS also made a $5 billion contribution to its company-sponsored pension plans for union-represented and non-union participants, raising the funding level.