UPS Teamsters rejects the company’s first commercial counter-proposal. (Photo: Jim Allen/FreightWaves)
Call it a contract cat-and-mouse game or not, but the Teamsters union harshly attacked UPS Inc.’s economic counter-proposal as negotiations resumed in Washington to draft a new master agreement.
The company’s counter-proposal “included minimal pay increases and across-the-board pay cuts to adjust workers’ cost of living,” the union said on Thursday. The Teamsters National Bargaining Committee unanimously rejected what the union described as a “disrespectful” package.
The committee told UPS (NYSE: UPS) that it would not meet again until the company made a “realistic and respectful commercial offer.” On Wednesday, the union presented its first economic proposal, which it described as “the largest and most lucrative financial proposal ever presented by a union”.
These include wage increases for each year of the five-year contract’s term, extra vacation and more paid time off, pension increases and the end of a two-tier wage system that the union says penalizes those who lack seniority despite doing the same work as their older ones Colleagues.
“We don’t accept whatever crumbs these leaders throw at us. UPS made a lot of money,” said Teamsters General Secretary Fred Zuckerman. “Our members sacrificed everything to get rich. We are now demanding a genuine offer.”
“If UPS wants to negotiate a 1997 labor agreement,” said General President Sean M. O’Brien, referring to the year the Teamsters went on a 15-day strike against UPS. “You will get the consequences of 1997.”
In a statement, UPS said, “As with all negotiations, reaching consensus on economic proposals requires serious and detailed discussion and give and take on both sides.” UPS prides itself on offering the best pay and benefits package in the industry, and so do we plan to continue doing so. Both the Teamsters and UPS have publicly acknowledged the major advances made to date, including agreements reached on all non-economic issues. These negotiations are impacting our people, businesses and consumers across the country, and that is a responsibility we take seriously.”
The Teamsters previously announced that they and UPS had agreed on 55 non-commercial contract issues.