Other Labor Matters Face Logistics

Totally unrelated to the UAW negotiations except by coincidence of timing, the International Brotherhood of Teamsters (IBT) said it has finished negotiating many of the contract supplements with UPS. The IBT and UPS continued talks on the remaining supplements over the weekend of September 22nd, resuming national contract talks on Monday the 24th, the day the UAW walked out of GM. "The union remains adamant about reaching a tentative national agreement by October 1," said the IBT. It wants to have a contract it can recommend to members and proceed with ratification before the end of the year. UPS company officials also told Logistics Today they were optimistic they could have an agreement by the October 1st deadline. (The actual contract runs into 2008, so the October deadline is self-imposed, not a contractual deadline.)

In other labor news, FedEx could pay $26 million to $33 million in severance costs to abandon its driver/contractor model in California. California tax authorities, the California Court to Appeals, and the National Labor Relations Board have all said the model is not legal. Some reports attributed to the IBT say FedEx was offering single-route contractors incentives of $25,000 or more to leave their jobs at FedEx.

Also on the management/labor horizon are negotiations for the National Master Freight Agreement covering less-than-truckload carriers YRC and ABF and the port labor contract between the International Longshore Workers Union and US West Coast ports. Both contract expire in 2008.

Pension and Health Benefits Top Teamster Demands

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