UPS, Teamsters talks break down
Union says delivery giant provided 'unacceptable' contract offer
Yellow Corporation CEO Darren Hawkins presses the importance of union negotiations to avoid economic disruption.
UPS and the Teamsters are at odds over their contract which expires at the end of the month.
The Teamsters National Negotiating Committee unanimously rejected the delivery company’s offer early Wednesday morning, according to the union. The committee said UPS provided an "unacceptable" offer in contract talks for about 340,000 employees while also alleging the delivery giant walked away from the talks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UPS | UNITED PARCEL SERVICE INC. | 133.21 | -2.00 | -1.48% |
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Meanwhile, UPS said, "We have not walked away, and the union has a responsibility to remain at the table."
Sean O'Brien, Teamsters president, speaks during an interview at the union's headquarters in Washington, D.C,, on March 17, 2022. (Michael A. McCoy/Bloomberg via / Getty Images)
"The Teamsters have stopped negotiating despite UPS’s historic offer that builds on our industry-leading pay. We have nearly a month left to negotiate," the company continued. "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."
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The existing contract will expire July 31, and UPS workers have already authorized the first strike since 1997 should the talks break down.
"The Teamsters should return to the table to finalize this deal," UPS said.
The work stoppage lasted 15 days in 1997, costing UPS $850 million as supply chains were disrupted.
"This multibillion-dollar corporation has plenty to give American workers, they just don’t want to," Teamsters General President Sean M. O’Brien said.
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"UPS had a choice to make, and they have clearly chosen to go down the wrong road," he added.
Last week, the Teamsters also said UPS didn’t adequately reward its workers who risked their lives to make deliveries during the COVID-19 pandemic, pumping big profits into UPS.
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In some cases, labor unions appear to have more bargaining power as companies like UPS struggle with labor shortages since the pandemic ended.