LOUISVILLE, Ky. (WDRB) – Negotiations between United Parcel Service, Inc. and the union representing its rank-and-file workers broke down early Wednesday, raising the odds of a massive, nationwide strike that could begin Aug. 1.
UPS and the Teamsters each accused the other of walking away from the bargaining table. While a strike is not assured, no additional talks were scheduled as of Wednesday afternoon. For some frontline workers, the development made a walkout seem more likely.
Geraldine Dawson, a package handler at UPS' global air hub in Louisville, is prepared to go on strike if necessary in August 2023, she said. July 5, 2023
“I've been preparing and telling everybody that I've worked with and know that they should be preparing because … I hoped that we wouldn’t get to this point, but I really thought that we would,” said Geraldine Dawson, a parttime package handler who has worked at UPS’ Worldport global air hub in Louisville for 25 years. “UPS is going to push the letter … they're going to do the best they can do to get what they can get … But you have to know when to pay your people.”
Atlanta-based UPS and the union — which represents about 340,000 package handlers, delivery drivers and other hourly workers — have been negotiating for months ahead of the expiration of their current five-year contract on July 31.
The Teamsters have said their members deserve substantial raises and benefit hikes in light of their work during the pandemic, which helped UPS profits soar.
“This multi-billion-dollar corporation has plenty to give American workers, they just don’t want to,” International Brotherhood of Teamsters President Sean O’Brien said in a statement Wednesday. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”
After working late during the July 4 holiday, the Teamsters said talks in Washington D.C. broke down about 4 a.m. when UPS refused to furnish a “last, best and final” offer for its members to vote on. UPS said it is the Teamsters who left the table, “despite historic proposals that build on our industry-leading pay.”
O’Brien had said it was necessary for UPS to present an acceptable contract by July 5 for UPS’ rank-and-file employees to have time to ratify it in a vote by Aug. 1.
However, it is up to the union whether to continue working past the current contract expiration. If a deal is reached in principle before July 31, the Teamsters could stand down while their members vote on whether to ratify it.
“We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table,” UPS spokeswoman Michelle Polk said Wednesday. “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.”
While the Teamsters in the past have agreed to extend their existing contracts beyond their expiration, the union's new leaders have been saying for months that they're taking a harder line than their predecessors.
"We will not be working beyond the expiration date without the contract that our members have demanded, but more importantly, the contract that our members deserve," O'Brien said during a press conference Saturday.
Shares of UPS were down about 2% on Wednesday as investors absorbed the news. Shares of FedEx, UPS’ primary competitor, edged up slightly.
While a UPS work stoppage would have profound implications for the entire country, a strike would be especially disruptive in Louisville, where UPS is the largest local employer.
The shipping giant employs about 26,000 in the region, including about 11,000 at its Worldport air hub at Louisville Muhammad Ali International Airport.
The hub shuffles about 2 million packages a day between cargo airplanes and feeder trucks.
