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Teamsters at U.P.S. Agree to Plan for a Strike

  • 05-21-2002
The International Brotherhood of Teamsters announced yesterday that its members had voted overwhelmingly to authorize a strike against the United Parcel Service if no new contract was reached by Aug. 1.þþThe union said 93 percent of members working at U.P.S. voted last weekend in favor of a strike, possibly setting the stage for a replay of the Teamsters' 15-day walkout against the company in 1997. þþCompany officials played down the likelihood of a walkout, saying unions often used strike votes to pressure companies. þþJames P. Hoffa, the union's president, said: ÿIt is time that we break the logjam at the negotiating table. Our members deserve a strong contract that reflects the success of U.P.S. over the past five years.ÿþþWith 230,000 Teamsters at U.P.S., a strike could badly hurt the nation's commerce. The company, which is based in Atlanta, has more unionized workers than any other company in the nation.þþNorman Black, a U.P.S. spokesman, said the company was eager to avoid a strike, partly because it lost so many customers in the 1997 walkout, the first strike in the company's 86-year history. That walkout was the largest strike in decades and affected almost every American business.þþSeeking to reassure customers, Mr. Black said steady progress was being made in negotiations.þþÿThe strike authorization vote was not unexpected,ÿ he said. ÿThat is a normal part of the negotiating process of the Teamsters. It doesn't mean there is going to be a strike, and it doesn't reflect what's happening at the bargaining table.ÿþþKen Hall, the union's chief negotiator, said a focus of the union was to pressure the company to convert 3,000 part-time jobs to full time each year. Union officials said 40 percent of the Teamster jobs were full time.þþMr. Hall said the union was also seeking a substantial wage increase, which he insisted U.P.S. could easily afford because it had profits of $2.4 billion last year, down from $2.9 billion the previous year. Full-time unionized workers earn an average of $23.05 an hour.þþCompany executives said they hoped to reach a settlement well before the five-year contract expires on July 31. They worry that if no settlement is reached by mid-July, customers will turn to the Postal Service or other competitors.þþÿWe don't think there is going to be a strike,ÿ Mr. Black said. ÿTo date we have not seen any signs of a significant diversion of business. The concern obviously is the closer you get to Aug. 1, the bigger the risk that will happen.ÿþþThe two sides are scheduled to negotiate for four days this week in Chicago and for four days next week in Washington.þþSome labor experts predict that a strike is unlikely because the 1997 strike hurt many union members. A loss of business then led U.P.S. to lay off several thousand Teamsters for months. The company did not reach its prestrike business levels until 18 months after the August 1997 walkout.þþMany labor experts say that Ron Carey, then the Teamsters' president, was eager to call a strike because that would rally union members behind him when he faced a tough re-election battle. Federal overseers ousted Mr. Carey for not stopping aides from using union funds to help his campaign.þþSome union strategists say the company's eagerness to avoid a strike might give the Teamsters extra bargaining leverage. But Mr. Hall, who was the union's chief negotiator in the 1997 talks, said he did not want to push so hard that it would cause a strike.þþMr. Hall said, ÿIt's fair to say the company wants to avoid a strike, and, frankly, so does the Teamsters.ÿþþNonetheless, to improve the union's ability to withstand a strike, Mr. Hoffa has obtained a $100 million line of credit and has pushed through the union's first significant dues increase in 20 years.þþThe bargaining could go far to establish the national reputation of Mr. Hoffa, whose father ran the union four decades ago. Since being elected president in 1999, Mr. Hoffa has become best known for improving the union's ties with Republicans.þþÿHoffa's national image is based more on his name than on anything in particular that he's accomplished,ÿ said Richard Hurd, a Cornell University professor of labor relations. ÿIf, in these negotiations, he has a major accomplishment that's noticed by the public, that can certainly be important for him.ÿþþþþþ

Source: NY Times