UPS and Teamsters blame each other for walking out of contract negotiations
Zachary Halaschak
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UPS and the Teamsters Union are pointing the finger at one another for walking away from the negotiating table this week.
The latest breakdown in negotiations comes mere weeks before worker contracts expire on July 31. Failure to reach an agreement could result in what would be the biggest worker strike for a single employer in United States history.
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In a Wednesday morning statement, the Teamsters, which represent more than 340,000 workers, said there has been a “collapse” in negotiations after “marathon sessions” of talks.
“Around 4AM, UPS walked away from the bargaining table after presenting an unacceptable offer to the Teamsters that did not address members’ need. The UPS Teamsters Nat’l Negotiating Committee unanimously rejected the package,” the union asserted.
Teamsters General President Sean O’Brien stressed the size of the company in question following the breakdown. UPS is the largest private-sector unionized employer in the U.S. A strike could send shock waves through the economy, especially if it drags out. Some 6% of the country’s GDP moves through UPS.
“This multibillion-dollar corporation has plenty to give American workers — they just don’t want to,” he said. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”
But UPS blamed the Teamsters for the deterioration of dialogue. The company said in a statement that the Teamsters Union’s assertion that UPS representatives walked away is inaccurate. UPS said it is also proud of its contract offer and encouraged the plan to be finalized.
“We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table,” the statement said. “Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy. Only our non-union competitors benefit from the Teamsters’ actions.”
Following news of the breakdown in negotiations, UPS’s stock fell by about 2%.
Last month, union members voted by an overwhelming 97% margin to authorize a strike should a contract agreement not be reached by the end of July, and as the date ticks closer to that deadline, negotiations are likely to become even more intense.
Negotiations between the union and the company began in April. The union is seeking a new five-year agreement that includes higher wages, more full-time jobs, an end to forced overtime, and bolstered workplace hazard protections.
O’Brien, the union president, replaced James Hoffa as the head of the Teamsters. He campaigned, in part, on being more aggressive in negotiations with UPS, as well as organizing Amazon workers, who have become more active in the labor movement since then.
A strike would have a dramatic effect on the country’s supply chains, given the incredible volume of goods that UPS moves each day. Competitors would not be able to take on the lion’s share of the new demand that would come from a UPS strike.
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A strike would also put President Joe Biden, who has deemed himself the most pro-union president ever, in a politically fraught position.
Biden already has low economic approval ratings and would undoubtedly be pressed to intervene to prevent damage to the economy, although doing so could imperil crucial blue-collar union support heading into the 2024 presidential election.