UPS to Pay Teamsters Following Arbitrator's Ruling

UPS to Pay Teamsters Following Arbitrator's Ruling

Case Will Affect Thousands of Workers Nationwide

December 18, 2001

An arbitrator has ruled that United Parcel Service needs to pay San Jose, California 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 grievance involved more than 100 part-time employees who work at the hub and gateway at San Jose International Airport.

“This is a landmark decision,” agreed Douglas O’Neal, Secretary-Treasurer of Local 287 in San Jose, which filed the grievance on behalf of the employees.

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.