#Ups insurance cost drivers
Over the past five years, the company had used an increasing amount of road contractors and frequently road drivers would be forced to work their weekly guarantees out of their classification while contractors performed driving work. New Restrictions on Subcontracting: One of the primary objectives of the union’s negotiating committee was the reduction in the amount of subcontracting, particularly of road work. During bargaining, the company committed to adding more bargaining unit drivers and growing the bargaining unit. There are currently nearly 12,000 employees covered by the National UPS Freight Agreement. In fact, it is estimated that the overall costs of the tentative agreement to the company are more than 33 percent higher than the costs under the current agreement.ĬLICK HERE to read the UPS Freight Tentative Agreement Furthermore, contractual protections and benefits to the bargaining unit have been greatly enhanced. Under the tentative agreement, UPS Freight’s wage and benefit packages will continue to be among the highest in the LTL industry. UPS Freight’s non-union competitors include FedEx Freight, Old Dominion, XPO and SAIA. As an LTL carrier, UPS Freight participates in a highly competitive industry driven by customer cost and service reliability. Labor costs are one of the most significant cost centers of any LTL operation. The challenge in any negotiations is to achieve the best possible agreement without putting the company in a financial situation where it cannot sustain itself. In the end, however, I believe we achieved a very solid tentative agreement that provides and improves upon outstanding wages, benefits and protections for the workers.” In fact, the union was able to secure dozens of significant contractual improvements in the tentative agreement.ĭespite the fact that the tentative agreement represents only the third national agreement with UPS Freight, the protections and benefits in the contract are extremely good and are reflective of a much more mature bargaining relationship. As Kris Taylor, the union’s UPS Freight coordinator, said, “Negotiations are frequently a roller coaster ride and we certainly had our share of bumps. More than one session abruptly ended with loud and “spirited” exchanges.
At times, things became heated with the company. The union negotiating committee was aggressive at the bargaining table. The union committee was open, democratic, transparent and engaged in vigorous discussions among themselves. The people on the bargaining committee were dedicated to obtaining the best possible agreement for the members.
Additionally, two Teamster members who are employed at UPS Freight also served on the committee. The union’s bargaining committee itself was composed of business agents and other local union leaders from across the country who represent employees in all types of UPS Freight operations. The tentative agreement accomplishes those objectives. Throughout bargaining, the union committee was focused on trying to improve contractual language, increasing compensation, protecting and improving health, welfare and pension benefits, and protecting and preserving bargaining unit work opportunities. Obviously, the goal of the Teamsters National UPS Freight Negotiating Committee was at all times to obtain the best possible contract from the company. Additionally, multiple attorneys, economists and consultants were used by the committee to sift through the data. Some of it was made up of sensitive internal corporate information that is covered by a legal “non-disclosure” agreement. Economic and business information was requested and obtained from the company. Bargaining was extremely complex and difficult. Bargaining commenced in December 2017 and the parties met over a seven-month period before reaching a tentative agreement on July 12.
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