Teamsters Tell UPS: No Drones or Driverless Trucks
January 24 2018 - 7:29AM
Dow Jones News
By Paul Ziobro
The Teamsters union wants to prohibit United Parcel Service Inc.
from using drones or driverless vehicles to deliver packages.
That was one of the labor union's initial demands as it kicked
off high-stakes contract talks with UPS this week. The Teamsters
also want the parcel giant to eliminate late-night deliveries and
add another 10,000 workers to the ranks, among other things.
The two sides are starting to negotiate one of the largest
collective bargaining agreements in the U.S., which covers around
260,000 UPS employees and expires in July. The International
Brotherhood of Teamsters' National Negotiating Committee this week
submitted to UPS an 83-page document updating the prior
agreement.
Both sides declined to comment on the specifics of the
proposal.
UPS spokesman Steve Gaut said the company is focused on
negotiating a contract that provides the company the flexibility
required "to remain a highly competitive provider of reliable
service," especially as smaller and new delivery companies encroach
on its turf.
The talks are starting amid a changed landscape in the delivery
world since the two sides last hammered out an agreement. Over the
past five years, online sales have surged, adding extra business
for parcel-delivery companies like UPS, FedEx Corp. and the U.S.
Postal Service as they deliver billions of packages to homes.
The surge has also been expensive for the companies, as they
have spent billions of dollars to add warehouses, "sortation
centers" and technology to handle the increasing volume. At the
same time, the labor market for warehouse and delivery workers has
tightened, forcing wages higher in many cases.
The Teamsters document addresses a number of work rules and
conditions. For instance, it wants to ban deliveries after 9 p.m.,
including during the peak delivery months of November and December
when drivers were sometimes delivering packages later into the
night. It wants to prohibit UPS from using drones, driverless
vehicles and other new technology to transport, deliver or pick up
packages.
UPS, like Amazon.com Inc. and others, has been testing drone
deliveries and said there are opportunities for new technologies to
help reduce costs. In February 2017, the company conducted a test
in rural Florida with a drone that delivered a package from the
roof of a truck while the driver continued along a route for a
separate delivery.
The Teamsters document also pushes for safeguards that allow
workers to refuse to work in unsafe conditions and overloaded
trucks. "It is the company's responsibility to hire and maintain a
sufficient workforce to service its customers without unreasonably
burdening its employees," the document notes. "Management has
consistently failed to fulfill its obligation."
The proposals represent the starting point for the Teamsters,
cobbled together after months of discussions among local unions.
The language will be negotiated over the coming months.
"UPS will negotiate in an environment of mutual respect and
looks forward to rewarding employees for their contribution to our
success," Mr. Gaut said.
The Teamsters' opening salvo omits the thornier topics of wages
and benefits, which are typically negotiated during the latter
stages of the discussions. The union, whose president is James P.
Hoffa, replaced its lead UPS negotiator last fall.
Write to Paul Ziobro at Paul.Ziobro@wsj.com
(END) Dow Jones Newswires
January 24, 2018 07:14 ET (12:14 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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