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American workers have won a decisive victory in a coast-to coast struggle against the huge UPS concern, which dominates the small package freight industry. After a 15-day strike, the workers, members of the International Brotherhood of Teamsters (IBT), were able to move the company on every item in its 'last and best final offer.' For the labour movement as a whole, the victory demonstrates that unions can organise a national strike and win -- even against a very wealthy and 'politically connected' corporation. Although the company's 'final offer' included 1,000 new full time jobs, and a separate UPS pension, the workers were not impressed. They fought on and won their demand of 10,000 new full-time jobs, and retained UPS in the multi-employer pension fund. Additionally, the union won limits on subcontracting, and took a step towards closing the wage differential between part-time and full-time, with wage gains over for years of $ 4.10 an hour for part-time employees, and $ 3.10 an hour for full-time employees. These gains were particularly important because over 60% of the company's workforce is part-time.
UPS is a highly profitable firm within a growing industry which it dominates, racking up US$22bn in sales and $ 1bn in profits last year. It has over 300,000 employees, of whom 185,000 (mostly delivery and warehouse workers) were in the Teamsters. The company has had a long bargaining relationship with the IBT extending back to 1916. However, for much of that period the union was controlled by corrupt mobsters under Jimmy Hoffa and his successors.
UPS workers have historically had a strong identification with the company and the company clearly thought they could play on their loyalty to 'Big Brown' to nobble the dispute.
In addition, the union has been in disarray. International union President Carey was under fire after a narrow re-election victory margin last autumn (see postscript) and allegations of 'illegal' contributions to his re-election fund.
There were also sharp divisions between Carey supporters and Old Guard types who supported Jimmy Hoffa in times past. These divisions had contributed to the defeat of strike action back in 1994 when UPS had unilaterally increased the 70 pound package limit to 150 pounds.
Carey called for a one-day protest strike, but Hoffa supporters undermined the action, telling workers that they might be fired if they took strike action and that the strike was illegal.
The Teamsters had been depleted before Carey's election. The Old Guard voted to raise contributions from $55 per week to $200, but at the same time rejected any dues increase or reallocation of funds from local unions to the international to help build the fund.
The company felt that it was a good time to continue to restructure the workforce to suit its needs -- in particular, to reduce labour costs by greater use of part-time employees, and continuing to eliminate full-time employment through attrition.
UPS further wanted to reduce costs (and commitment to a permanent, unionised workforce) by introducing contracting out of some work. They wanted to maintain a large wage differential between full-time and part-time work ($20 and $11 an hour respectively).
The company also wanted to get out of the teamsters' 'multi-employer' pension, and create a separate UPS pension with greater company control. Finally, they wanted a long term agreement, beyond three years, to lock in current conditions.
UPS is now the largest employer of IBT members in America. Like his father before him, Union President Ron Carey was once a driver with the firm and president of a UPS local. UPS issues had propelled him into the national leadership of the union. The old guard leadership had introduced 'concession agreements' during the 1980s, including two tier wage scales and unlimited part-time work. These sellouts inspired Carey to run for national union President.
Carey was particularly alert to the tactics that the old guard' international leadership had used to force the concession agreement on the UPS workers. They went over the head of Teamster/UPS bargaining committee and forced a total membership vote on the company's 'last best offer', which was narrowly endorsed by the membership.
The union was forewarned by their 1994 experience that it would have to make an effort to get everyone out on strike -- and unlike the one day strike, which was during the life of agreement, with no time for a strike vote, and only a short period to organising action, and totally dependent on existing communications network within Teamsters during the lead up to a leadership election challenge -- the UPS strike, if it came to such an action, would need to be well organised and prepared in advance.
The union reached out to membership and to the wider community, including the rest of the labour movement. Before the strike was even called, the union had done much to set the terms of the dispute.
The union allowed rank and file members to be the spokespersons and had daily, and even hourly contact with UPS locals around the country, updating them on negotiations and strike strategy. As a result, the union successfully shut down the company from the very beginning of the strike. Company threats to take on scabs came to nothing.
The Teamsters also successfully countered the 'mobster' image, by featuring UPS employees as spokespersons. Carey also was particularly effective in the media in this dispute, because of his passion and depth of knowledge of UPS issues.
For workers as a whole, the UPS struggle has shown how united action can achieve victories even against very powerful corporations.
*Harvard Trade Union Program
htup@harvarda.harvard.edu
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The Elections Officer for the IBT has just brought down her decision re the election for International officers last autumn. She has refused to certify the elections and has ordered fresh elections. Most positions will be contested, including those of President and Secretary Treasurer. However, the Central Region Vice Presidents (elected on the Hoffa slate) and the President of Teamsters Canada (elected unopposed in the 1996 elections) will not be contested.
The Elections Officer found that contributions to 'Teamsters for a Corruption Free Union', a fundraising committee of the Ron Carey Campaign, funnelled employer and Teamster funds into the Carey Campaign --violating the Election Rules' prohibition against employer and Teamster contributions.
However, the Elections Officer found that 'there is not evidence that Carey or any member of his slate knew of or participated in the various improper fundraising schemes' and that 'the investigation did not uncover any misconduct by Carey or his slate members.'
The corrupt Old Guard have long had a stranglehold on the union, and it is to be hoped that the fresh elections will see them removed once and for all from office. Three of the last five Teamsters International Presidents have gone to jail for various crimes and a fourth died during an appeal.