Teamsters Win Major UPS Pay Dispute

Teamsters Win Major UPS Pay Dispute

Company Will Pay Workers Shift Differentials That They Never Received

December 18, 2001

(Washington, D.C.) – An arbitrator has ruled that United Parcel Service needs to pay San Jose, Calif.-area Teamsters more money for working late-night or early-morning shifts. Following the ruling, the International Brotherhood of Teamsters negotiated with UPS, and the company agreed to pay employees throughout the United States who are affected by the ruling.

“This is a major victory for Teamsters at UPS,” said James P. Hoffa, Teamsters General President. “The ruling affects thousands of Teamsters nationwide who deserved to be paid a shift differential for working difficult hours.”

“Three years after the grievance was filed, the hardworking men and women at UPS will finally get the wage they were supposed to receive,” Hoffa said.

The case involved an interpretation of Article 40 of the National Master United Parcel Service Agreement between the Teamsters and UPS, and whether the Preamble to Article 40 prohibits the payment of shift differential in UPS’ air facilities. An arbitrator ruled that the employees were entitled to the shift differential provided for in a supplemental agreement covering employees in Northern California.

Because there are other supplemental agreements in regions throughout the United States, including New England, New Jersey and southern New York, the arbitrator’s ruling affects thousands of workers.

The shift differentials are typically 15 to 35 cents per hour, but the exact number of employees involved and the amount to be paid by UPS will be negotiated. Local 287 filed the grievance in November 1998, but how far back UPS is responsible for paying shift differentials still needs to be worked out. Both sides will discuss the case in the coming days.

Founded in 1903, the International Brotherhood of Teamsters represents more than 1.4 million hardworking men and women throughout the United States and Canada.