1. Eric Woods

2. TEAMSTERSUPS  In 1991, the union held their first elections, electing Ron Carey, a former UPS worker, over two ‘old guard’ candidates  Teamsters went on strike  The workers still would not come back to work  In 1994, UPS raised the weight limit workers were required to lift from 70 lb. to 150 lb., without negotiating with the Teamsters union  UPS won an injunction in the courts, ruling the workers back to work  UPS forced to sign an agreement retracting the weight limit increase

3.  In 1996, UPS approached contract negotiations expecting all their demands to be met  Teamsters wanted more full time jobs, & wage increases  UPS countered by basically saying, ‘accept our first offer, and you will get a bonus’  The Teamsters then called the strike

4.  Number of Full time Jobs  Wages of workers  Pensions  Subcontracting jobs  Benefits  Weight limit change guidelines  Contract length

5. UPS-20 POINTSTEAMSTERS- 30 POINTS  UPS wanted more part time workers to save on health benefits  UPS also paid part time workers less than full time  They were willing to concede here if they could save money elsewhere  The teamsters wanted more full time workers, and less part time  This was the main reason Union members were unhappy  Also, more full time workers=more union members

6. UPS- 15 POINTSTEAMSTERS-20 POINTS  UPS had lower wages compared to other companies at the time  Keeping wages low would help offset more full time jobs being added  Teamster’s members wanted higher wages, but they were more concerned with the increase in full time jobs

7. UPS-10 POINTSTEAMSTERS- 15 POINTS  Pensions only affected full- timers, so UPS wasn’t as concerned with this  UPS was willing to concede an increase in pensions as well  Workers wanted an increase in pension, but this wouldn’t matter without more full time jobs  Pensions was fairly important, as it affected the older workers more and they had more of a say than younger one

8. UPS-20 POINTSTEAMSTERS-10 POINTS  UPS wanted to subcontract jobs away to save money  By subcontracting they wouldn’t have to give workers benefits  Teamsters were against subcontracting, as it reduced full time jobs  However, they were more concerned with improving the jobs their workers already had

9. UPS-5 POINTSTEAMSTERS-10 POINTS  UPS had previously changed the weight limit on the workers without telling them  UPS didn’t really care about this point  Teamsters wanted UPS to not be able to change the weight limit without the Teamster’s approval  This was a disputed point earlier, so the Teamsters wanted to make sure UPS couldn’t change the limit

10. UPS-5 POINTSTEAMSTERS-10 POINTS  UPS wasn’t concerned with benefits, as it only applied to full timers  The Teamsters cared about this a little less than pensions, as pensions affected the older workers more, i.e. those who had more of a say in the union

11. UPS-25 POINTSTEAMSTERS-5 POINTS  UPS wants a longer contract to prevent future strikes  This is very important to them, as they lost a lot of money from the strike  Teamsters want a shorter contract, but they are willing to accept a longer contract if it is favorable

12. ITEMSTeamstersUPS Full Time Jobs (FTJ)3020 Worker’s Wages (WW)2015 Pensions (P)1510 Subcontracting Jobs (SJ)1020 Weight Limit Change Guidelines(WLCG) 105 Benefits (B)105 Contract Length (CL)525

13. ITEMSTeamstersUPS Full Time Jobs (FTJ)3020 Worker’s Wages (WW)2015 Pensions (P)1510 Subcontracting Jobs (SJ)1020 Weight Limit Change Guidelines(WLCG) 105 Benefits (B)105 Contract Length (CL)525

14.  Teamsters get: FTJ (30) + WW (20) + P(15) + WLCG (10) + B (10)=30+20+15+10+10 = 75  UPS gets: SJ (20) + CL (25) = 45  Using AWP: The lowest ratio is WW (20/15)  Thus, we have:  75-20x=45+15x  30=35x -> x=6/7

15.  So at the end, the Teamsters would get FTJ, 1/7 of WW, P, WLCG, and B  UPS would get 6/7 of WW, SJ, and CL  Splitting the wages would mean there would be a slight increase ( perhaps 1/7 of what the Teamsters wanted)

16.  In reality, the Teamsters got almost all of their demands, UPS got almost nothing  Contract signed with UPS increased full time jobs, increased wages, and had increases to pensions and benefits  Signed an agreement with UPS that said UPS couldn’t subcontract jobs or change the weight limit freely  Only thing UPS really got out of the deal was a longer contract, of 5 years

17.  Disparity between parties comes because UPS was at a position of weakness  They were losing millions of dollars per day by not delivering packages  Weren’t prepared for the strike, which allowed the Teamsters to create pressure on UPS to meet their demands  UPS tried to get the courts and government to order their workers back to work, but the government sided with the workers.  So UPS did not really have any bargaining power, and was forced to make a deal that favored the Teamsters.

18.  http://en.wikipedia.org/wiki/United_Parcel_Service_strike_o f_1997 http://en.wikipedia.org/wiki/United_Parcel_Service_strike_o f_1997  http://isreview.org/issues/55/bigbrown.shtml http://isreview.org/issues/55/bigbrown.shtml  http://workerscompass.org/lessons-of-the-1997-teamster- strike-at-ups-part-1/ http://workerscompass.org/lessons-of-the-1997-teamster- strike-at-ups-part-1/  http://www.pbs.org/newshour/bb/business-july-dec97- ups_8-19a/ http://www.pbs.org/newshour/bb/business-july-dec97- ups_8-19a/  http://www.cnn.com/US/9708/20/ups.update.early/ http://www.cnn.com/US/9708/20/ups.update.early/  “Ron Carey’s Weird Strike”, Wall Street Journal, August 1997.  Bob Herbert, “Worker’s Rebellion”, New York Times, August 7, 1997.