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Deadline Looms for UPS Union Contract

While the new labor contract at UPS (NYSE: UPS  ) is expected to pass the vote on June 22, in the video below, Fool analyst Blake Bos tells investors that they will want to watch that vote very carefully. A strike back in 1997 cost UPS $650 million in lost business, and any such similar disruption now could be a catastrophe and a huge win for competitor FedEx (NYSE: FDX  ) . Blake describes the relationship between management and workers at UPS, and tells investors some of the key labor challenges that the company will face going forward.

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Read/Post Comments (5) | Recommend This Article (8)

Comments from our Foolish Readers

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  • Report this Comment On June 11, 2013, at 6:24 PM, kthor wrote:

    UPS = UnderPaid Slaves !!! lol

  • Report this Comment On June 12, 2013, at 11:52 AM, Anonanony555 wrote:

    Service providers (drivers) make 32 an hour, 10 hours of overtime at time and a half on average, they are provided with full health benefits for themselves and their family, they receive a partial pension after 25 years of service, a full pension after 30 years, a 401k plan for their retirement, a stock purchase discount, and not to mention, their famous brown uniform was rated the best looking among all others. They are allotted multiple weeks paid vacation, 8 paid holidays, paid optional days, paid sick days, and request loads should they feel the need to leave work early.

    They are hardly slaves, and they are hardly underpaid. They own their beautiful homes, they drive their luxury cars, and they're able to support their family, and still have time to go on vacation multiple times a year. Yes it is manual labor, but for a blue collar job that requires no formal education and no CDL, we should all be so lucky to obtain such a job.

  • Report this Comment On June 12, 2013, at 3:19 PM, DukeBradford wrote:

    definitely not underpaid BUT, the guy in video describes UPS's relationship towards the workers

    as "hostile". That is dead-on correct. A month before every raise in the wages, the harassment gets stepped up. Harassment comes in many forms and is usually in the form of a puppet standing over you with a clipboard while you're trying to do your work. The day after there was an agreement to the contract last month, the harassment started up and lasted a good week or two. The next raise will be August 1st assuming the contract is ratified. That means July will be another harassment month. Upper management have their puppets do their dirty work. It's laughable because the puppets are like deer in highlights getting pissed on everyday. It's their only chance at a promotion.

    The Company always wins in the long run but the more they make, the more we take. Long Live The TEAMSTERS.

  • Report this Comment On June 12, 2013, at 10:48 PM, marlinsrundeep82 wrote:

    UPS teamsters get better raises than mgmt., have better health care than management, and are allowed far more leniency than anyplace I have ever worked concerning disability, attendance policy, and vacation. Has this guy even ever met a teamster? Good Lord! Most of these can barely read. I wish they offered us management the terms they give our employees. We would not vote no! Instead of all their griping, how about they work their 3 hour shift and take a ten minute paid break as well. They want to act like life is so hard. Then why don't they quit? Bc they know they have it so good. Zuckerman is an idiot as well.

  • Report this Comment On June 15, 2013, at 1:11 PM, OleBoy wrote:

    @marlinsrundeep82: it appears you are disgruntled that you chose part time supervision as your employment option. Union employees earn negotiated vacations, attendance is addressed when necessary & disability is subject to federal & state laws. It is inauspicious that you categorize most Teamsters as unable to read. I know many that have 4 year college degrees.@ Anonanony555: You are absolutely correct! The 401-K plan is available but UPS does not match any contributions. Employees work very hard for negotiated wages/benefits. A lot is expected of them when performing their responsibilities. UPS micro manages everything down to 100ths of an hour. FT package drivers experience lots of stress & sacrifice quality time with their families due to dispatch scheduling & time constraints.

    Did you know that UPS has the largest divorce rate in the USA workforce? This includes all employees as unreasonable objectives are placed on lower management too.

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