AP / Mark Lennihan
A United Parcel Service driver unloads packages from a truck and arranges them for delivery in New York.
Published Wednesday, July 12, 2023 | 12:39 p.m.
Updated Wednesday, July 12, 2023 | 2:07 p.m.
Nevada Treasurer Zach Conine signed a letter to the head of United Parcel Service urging the shipping giant to end an ongoing labor dispute.
The dispute could lead to a strike and “massive supply chain disruptions,” according the letter dated today to UPS Chief Executive Officer Carol Tomé.
Conine, along with treasurers and comptrollers from 10 other states, said a walkout would pose a “significant threat” to the company. They urged UPS to consider pay increases for the more than 340,000 union workers whose contract expires July 31.
“Failure to reach a fair resolution could also impede UPS’ ability to compete in the labor market,” the letter said. “Nearly one-third delivery drivers throughout the United States reported that they were willing to choose a new place to work based on a company’s reputation as an employer.”
In Las Vegas, Teamsters Local 631 represents about 1,800 UPS workers, while Teamsters Local 533 in Reno represents about 1,200 UPS employees.
A strike would have a devastating effect on the supply chain and could impact customers who rely on UPS to deliver medications, groceries and other goods in a timely fashion, Conine said in a statement.
“Throughout the pandemic, UPS workers kept our economy moving while putting themselves and their families at risk,” Conine said. “Now, the company needs to do the right thing and come to a reasonable agreement to compensate its full-time and part-time workers fairly.”
When asked for comment, UPS issued a one-line statement: "We look forward to coming back to the table and finalizing a deal."
Teamsters Local 631 did not respond to requests for comment.
On July 9, Teamsters Local 631 posted a graphic on Twitter that said, “Hey Carol do you remember when you said all UPS employees are essential. WE DO!”
Conine was joined in signing the letter by officials from Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Minnesota, Oregon, Rhode Island, and Vermont — all Democrats. No Republican officials signed the letter.
Negotiations between workers and UPS broke down last week, with each side blaming each other for walking away from the bargaining table.
Teamsters said the parcel service presented “an unacceptable offer” while the company blamed the union for walking away “despite UPS’s historic offer that builds on our industry-leading pay.”
Teamsters say any tentative agreement would need the OK of its national committee before being considered by local membership. The union said it will not negotiate past the expiration of its current contract.
The Teamsters represent more than half of UPS’s workforce under the largest collective-bargaining agreement in North America. A strike would mark the first since 185,000 employees staged a 15-day walkout about 25 years ago.
UPS has boasted it delivers the equivalent of about 6% of the U.S. gross domestic product, meaning a work stoppage could have potentially far-reaching implications for supply chains.
Despite the stall in negotiations, the sides have agreed to do away with a two-tiered wage system for drivers who work on weekends and earn less money, which was a major sticking point.
The union also said it reached a tentative agreement to establish Martin Luther King Jr. Day as a company holiday and also ends overtime on drivers’ day off.
Last month, the union and the company reached another tentative agreement to equip more trucks with air conditioning equipment.
Under that agreement, UPS said it would add air conditioning to U.S. small delivery vehicles purchased after January 1, 2024. Existing vehicles wouldn’t be upgraded, but the union said they will have other additions like two fans and air vents.
Annual profits at UPS in the past two years are close to three times what they were pre-pandemic. The company returned about $8.6 billion to shareholders in the form of dividends and stock buybacks in 2022, and forecasts another $8.4 billion for shareholders this year.
