UPS offers Teamsters ‘significant’ pay boost as union’s strike threat looms

Negotiations between logistics giant UPS and the Teamsters union continue to run down to the wire as the company offered an enhanced pay package that the union said is an improvement but still not enough.

The Teamsters said Friday that there has been “significant movement on wages and other economic language” after it demanded UPS provide its “last, best, and final offer” by the end of June while threatening a strike if a deal isn’t reached before the current contract expires at the end of July.

“We’ve gotten some changes that will better our members’ lives, but more importantly, take care of their families,” Teamsters General President Sean O’Brien said at a press event Saturday, “But we’re not there yet, and we’re not there yet because UPS, typically like UPS thinks, that the Teamsters union are going to concede to their demands. I’m proud to say every change that has been made right now has zero concessions and all gains for our members, and we plan to continue that all the way through July 5.”

TEAMSTERS GIVE UPS ULTIMATUM, DEMANDING BEST CONTRACT OFFER BY FRIDAY OR RISK ‘IMMINENT’ STRIKE

O’Brien said the Teamsters and UPS will need to reach an agreement by July 5 to put the proposed contract forward for its members to ratify ahead of the current contract’s expiration at the end of July.

The UPS Teamsters in mid-June voted to authorize a strike with 97% of members in favor. Authorization votes don’t necessarily mean that a strike is going to happen and votes often take place amid ongoing negotiations. 

Prior to the strike authorization vote, the two sides announced an agreement on a variety of heat safety measures. Both the union and UPS have said they want to secure a deal before the current contract expires.

UPS TEAMSTERS VOTE TO STRIKE

“We are encouraged the Teamsters are ready to continue negotiations and discuss our most recent proposal,” UPS said in a statement. “Productive discussions are critical at this stage of the process. We look forward to the union’s input so we can reach a timely agreement and provide certainty for our employees, our customers and the U.S. economy.”

UPS has around 340,000 unionized employees who are represented by the Teamsters under what is the largest private-sector collective bargaining agreement in North America, according to the union. That figure includes package delivery drivers and warehouse logistics workers around the country.

UPS, TEAMSTERS IN NAIL-BITING NEGOTIATIONS AS STRIKE THREAT LOOMS OVER ECONOMY

UPS’ role in the U.S. economy has grown in recent years due to the rise of e-commerce and an influx of deliveries during the pandemic – a trend that has remained even as the economy reopened and supply chain challenges abated.

The company ships about 24 million packages per day and handles roughly one-fourth of all U.S. parcel volume, according to shipping and logistics firm Pitney Bowes, which UPS notes is roughly equivalent to 6% of America’s gross domestic product.

The current Teamsters contract expires on July 31, which raises the possibility of a strike if the two sides are unable to finalize an agreement. Negotiations officially began on April 17.

Reuters contributed to this report.