United Parcel Service will pay more for labor after replacing a union contract that expires in July. The main question is whether it’s enough to avoid a strike that would throw package delivery into chaos.
A group of Amazon workers in California have withdrawn a petition to hold a union election, but it’s a temporary setback, the workers say.
Besides undoing the two-tier driver scale, O’Brien wants to boost the starting wage for part-time workers to more than $20 an hour from $15.50 now. His argument is bolstered by UPS’ need to pay above $20 an hour to attract part-time workers during the pandemic in what are called “market rate adjustments.”, and intends to showcase the UPS contract as an example of organized labor’s newfound leverage over employers.
Negotiations on the union’s master contract will start much later than usual, as union locals bargain their supplemental contracts first, O’Brien said. This is a reversal of order, and gives more leverage to locals and reduces traditional pressure on them to settle so the national agreement can take effect. It will also give the union some sense of UPS’ negotiating tactic. Those local talks should all be under way by Feb. 1, he said.
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