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Published On: Mon, Apr 29th, 2013

Inside Information Obtained On UPS Teamsters Contract 2013

On the same day that UPS reached tentative agreement on a new contract with the International Brotherhood of Teamsters, the company announced its profits are on the rise. UPS’s after-tax profits for the first quarter rose to $1.04 billion. This is up from $970 million made during the same period last year. For the year, UPS is projecting to haul in $4.6 to $4.8 billion in after-tax profits. Although both sides of the UPS Teamsters contract 2013 have tried to keep the terms of the proposal under lock and key, The Brenner Brief has obtained some initial details on the UPS tentative agreement, including certain information on wages, pensions and health benefits.

UPS Teamster ContractThis is proposed contract would have a term of five years.

Wages

Proposed wage increases are $.70 for the first 3 years, $.40 for the fourth year and $.50 for the final year of the contract. The advancement thru the tiered pay structure has been lengthened from three-years to four-years so new full-timers will have to wait longer to reach full union scale.

Starting pay for part-timers will increase from $8.50 to $10.00/hr. Although the International Union has claimed a “substantial increase” in starting pay for part-timers, in some areas it will drop below minimum wage by the time the contract expires in 2018.

Health Benefits

The proposal includes a deal to move all full-time and part-time Teamsters out of company-provided health insurance and into the Central States Health and Welfare Plan and other Teamster plans. The benefits currently provided by the Central States Plan, available here, will reportedly be enhanced to make them equal with members’ current benefits. Although no one is clear on what enhancements need to be made or will be made. This may be a maneuver by Big Brown to outflank Obamacare.

Pension Benefits

This is a sensitive issue for union members especially after Hoffa Jr. allowed UPS to pull out of the Central Pension Plan in the last contract. This is also critical to those union members in the Central and Southern Regions, as well as the Carolinas where reportedly 44,000 full-time Teamsters receive the lowest retirement benefits in the country.

According to sources the 30-year pension in the IBT-UPS plan will reportedly go to $3,200/month in 2014, with a second increase to $3,400/month that does not take effect until 2017.  As far as other Teamster funds, there will be an increase of $1/hr each year, which some union insiders claim is actually less than what the previous contract provided due to inflation.

The UPS contract is a large and complex contract. Along with the national contract, which we are discussing here, there are area supplements and riders that have not been negotiated or settled yet. Those include Northern and Central California, the Louisville Local 89 Air Rider, New York Local 804 and New Jersey Local 177. The bargaining committees for these groups will be in negotiations next week. So will the negotiating committees for Locals 705 and 710 which cover all of Illinois and parts of Indiana and Iowa. These are separate agreements from the national contract and the International Union is pressuring them to reach an agreement quickly.

UPS Teamsters will vote separately on the national contract, any applicable supplement, and in some cases on their local rider.

However, all is not as smooth as it appears. Retirees are reporting receiving a letter which informed them that their healthcare would be increasing from $50 to $495 per month. Many retirees are pushing to have this addressed in the current negotiations although historically retirees normally don’t get to vote on a contract. Other members in the Central and Southern Regions, as well as the Carolinas are complaining that the $200 increase in pensions is not adequate compared to what other UPS workers around the country are receiving.

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About the Author

Richard D. Baris

- Contributor to The Brenner Brief, and author of "Our Virtuous Republic." Rich is a veteran of the US Army and former financial advisor. He is an expert in Chinese business negotiation. Studied International Relations, Political Science, and History at the University of Florida.

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Richard Baris

Richard D. Baris
Contributor to The Brenner Brief, and author of "Our Virtuous Republic." Rich is a veteran of the US Army and former financial advisor. He is an expert in Chinese business negotiation. Studied International Relations, Political Science, and History ... Read the full profile...

Sara Marie Brenner

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Sara Marie Brenner is the Creator and Editor of TheBrennerBrief.com. An experienced grassroots rebel-rouser, writer, political organizer, and online outreach specialist, Brenner founded the site to be a place where people passionate about rendering ... Read the full profile...