It’s two years till the contract between United Parcel Service and its 330,000 unionized drivers and bundle handlers is due for renewal, usually a time when labor-employer relationships are much less contentious.
The Teamsters union is prepared for struggle.
In a sequence of self-produced Teamsters podcasts beginning in mid-July, President Sean O’Brien put UPS (NYSE: UPS) on discover that rank-and-file members will go on strike if the corporate doesn’t acquiesce to calls for for even higher phrases than the wealthy contract at present in place, which he calls “historic” for its pay and advantages.
Amongst points the union is ready to strike over are anticipated makes an attempt to roll again well being and pension advantages, automation and deployment of autonomous vans, and alleged outsourcing of last-mile supply and provide chain features to non-union subsidiaries.
Maybe, essentially the most uncommon strike set off is a brand new demand that each one 4 union areas, that are ruled by dietary supplements to the nationwide grasp settlement, be allowed to go on strike mid-contract if the events stay deadlocked on how you can resolve union grievances.
“It’s going to be a battle and we’re most likely going to strike UPS. I imply, we’ve got to as a result of they don’t respect us. They don’t do what they’re presupposed to do on the duty of the contract. They struggle us on every thing,” O’Brien stated on a latest episode of the “Higher Unhealthy Concepts” podcast.
It’s no secret that the Teamsters and UPS don’t have good relations, however the stage of animosity this far forward of negotiations is putting.
Since union leaders lack their strongest weapon — the strike — in the midst of a contract, tactical posturing and aggressive public rhetoric usually decline. Contracts are supposed to offer a interval of operational stability for the corporate and staff, with union leaders shifting to implementing what was already received reasonably than demanding new concessions. Mid-contract disputes are resolved via extremely structured administrative procedures.
O’Brien additionally continued to disparage CEO Carol Tomé and her administration workforce, saying they’re out of contact with staff’ wants. The feedback match his gruff persona — O’Brien eagerly factors out that his initials are SOB —however increase questions on whether or not any belief shall be left by the beginning of negotiations to achieve an lodging.
“She makes $29 or $30 million per yr and all she cares about is the underside line and the stability sheet and the stockholders. She doesn’t care in regards to the staff who’ve made this firm profitable for 70 years,” the Teamsters chief stated in one other episode. (The CEO’s complete compensation in 2025, largely from the worth of inventory awards, was truly $22.8 million, in accordance with UPS securities filings.)
“This girl is fucking delusional. And I can’t wait to get to the bargaining desk to deal with our members’ considerations, but in addition to carry this firm accountable,” O’Brien stated in taking offense at public statements on earnings calls crediting the corporate’s accomplished transformation plan, which concerned a glide down in Amazon quantity and reconfiguring the community, for enabling a return to revenue development.
“She doesn’t even point out a very powerful those who work for this firm. That’s the rank and file members, the women and men who go there and sacrifice time away from their households, sacrifice their our bodies.” he continued. “That’s the greatest bunch of bullshit that I’ve ever heard in my life. … The corporate’s at all times been worthwhile. She didn’t carry it again. Our members are those that make this worthwhile.”
UPS van and truck drivers, and bundle handlers, ratified a five-year contract in August 2023. The Teamsters estimated the contract’s worth at $30 billion.
The settlement included a $2.75-an-hour wage improve within the first yr for full- and part-time staff, adopted by smaller annual bumps, and 60 non-economic adjustments overlaying work circumstances. By the point the contract ends, senior full-time drivers will earn roughly $170,000 a yr in wages and advantages. Half- and full-time staff will get $7.50 extra in hourly wages over the lifetime of the contract. Present part-time staff noticed their wages instantly raised to $21 an hour, whereas new part-timers begin at $21 an hour and advance to $23 an hour. The contract ended a two-tier driver wage system for doing the identical work, bringing all junior drivers into seniority standing.
The Teamsters plan to launch the following contract marketing campaign within the fall of 2027, however is already drawing battle traces. What follows are in depth podcast excerpts wherein O’Brien lays out how he plans to assault UPS, whereas motivating staff to arrange for a piece stoppage.
The podcasts are vital as a result of they supply a window into the union management’s mindset forward of contract negotiations that may have nationwide financial and political implications. UPS delivers greater than 16 million packages per day, about 17% of complete home quantity, and complete world quantity represents an estimated 5% to six% of U.S. GDP. A strike may disrupt provide chains and operations for about 1.5 million enterprise clients that depend on the corporate for bundle and freight supply, particularly main into the height transport season and the vacations.
It’s additionally attainable that UPS executives would welcome a strike as a chance to halt the upward spiral in labor prices, additional elevating prospects for a dangerous transport disruption.
“We’re targeted on operating a protected, dependable and profitable enterprise that gives industry-leading service for our clients, creates alternatives for our folks and positions UPS for long-term development. The present settlement stays in place via July 31, 2028, and we stay dedicated to working with the Teamsters as we’ve got for greater than a century,” spokeswoman Gennevieve Bowman stated in a press release to BigRig.
UPS says {industry} main pay and advantages, together with annual wage will increase and cost-of-living changes, prime driver pay of $45.75 an hour and part-time staff receiving healthcare protection that prices them subsequent to nothing — no premiums and low/no co-pays — show that the contract is nice for workers.
Some {industry} observers say UPS must take a robust stand in opposition to the union if it needs to carry prices nearer to {industry} norms and nonetheless be related within the parcel supply {industry}. Satish Jindel, the president of parcel analytics supplier ShipMatrix, stated throughout a latest presentation {that a} strike would enable UPS to interrupt the union by hiring exterior drivers at a lot decrease value, giving it an opportunity to regain dominance in last-mile supply.
Whereas streamlining the home parcel community has improved productiveness, leading to decrease value per piece, UPS is concurrently relegating the parcel enterprise to secondary significance by leaning into market segments that worth the corporate’s end-to-end capabilities like advanced healthcare, small-and-medium companies, industrial and automotive, and B2B supply. UPS has been selling its strategic give attention to premium segments for practically two years, however the Aug. 31 announcement about reorganizing its working mannequin round full-service, world logistics options underscored that native, e-commerce parcel supply was not a precedence.
If that’s the case, will UPS care if frontline staff go on strike?
“That is crunch time for UPS and Teamsters. Their value to serve stays extraordinarily excessive. It’s an albatross for them. That is actually going to be a seminal second for UPS to attempt to change their enterprise technique,” stated a former UPS govt who spent greater than 20 years in a senior administration function, on situation of anonymity to guard in opposition to potential backlash whereas nonetheless working within the freight {industry}.
“Do you proceed to slog together with the same excessive value construction, the place you’re the outlier, or do you actually go to the mat, which might imply some type of a piece stoppage? I’m assured these forms of conversations are happening internally. What I don’t know is the extent of willingness to tackle that ache,” he stated. “I can assure you they’re enthusiastic about it. What’s the breaking level?. How a lot can we tolerate?”
The final nationwide strike at UPS was in 1997. The walkout shut down UPS for 15 days and price the corporate greater than $600 million in misplaced enterprise, in accordance with a New York Occasions story then.
“There was an amazing hangover, each culturally and on the enterprise facet,” the BigRig supply stated. “The calculations on how shortly the enterprise would come again after the strike have been too formidable. It took a very long time for folks to return again. And it led many shippers to resolve by no means to single supply once more. They break up their quantity to keep away from getting caught with out choices.”
UPS had $88.7 billion in income final yr and the Teamsters insists it could actually afford to higher compensate its staff. The corporate spent $1 billion on inventory buybacks in 2025.
“The irony of the 2023 Teamsters victory is that whereas it secured $65/hour complete compensation, it pressured UPS to aggressively shrink its community, automate hubs and minimize 1000’s of positions to protect margins on light-weight B2C freight. They obtained their pound of flesh, however the Teamsters might have additionally mortgaged future union job development within the course of,” commented Richard Metzler, a well-known logistics veteran with govt stints at FedEx, DHL, XPO and uShip.com, in response to the BigRig article about Jindel’s prediction.
In an interview final week, Jindel stated UPS state of affairs is totally different than 30 years in the past, when a strike could be practically inconceivable to handle. Right this moment, UPS would simply be capable to use Roadie and recruit alternative drivers from FedEx and a mass of low-cost different carriers which have sprouted in recent times.
A strike “shall be painful for 3 months, however that not less than will right the sickness. It’s important to amputate the leg to avoid wasting the physique. You already compromised the physique with the final contract and this one will kill it. If they offer in to the union they should take away their center title. They received’t be a parcel provider,” Jindel stated.
Listed below are Sean O’Brien’s views in his personal phrases on the “Higher Unhealthy Concepts” podcast, edited for size and circulate:
Unhealthy blood between UPS administration and staff
— “You possibly can by no means underestimate their trickery or foolery throughout these negotiations. We’re going to should struggle laborious to get what our members demand.”
—“We’re gonna go into this contract negotiations from a place of energy like we at all times do. However the one factor we’re gonna do otherwise will not be take UPS at their phrase anymore as a result of their phrase isn’t any good. “We wish to work collectively. However with UPS, you understand, they’re affected by a pandemic generally known as lie-abetes. What they are saying and what they do are two various things. And on the finish of the day, after they get caught and so they should pay up, you understand, it’s a distinct tune. So I can’t look ahead to 2028.”
—“UPS known as me up not too long ago and so they stated, ‘Hey, is there any manner that you may assist us arrange FedEx or, you understand, assist us get some enterprise?’ I’m like, perhaps 10 or 12 years in the past once you have been rising, once you have been hiring folks, once you weren’t attempting to eradicate jobs, once you weren’t subcontracting out of labor. And it’s simply humorous. There’s no disgrace of their sport.”
—“When she [Carol Tomé] not too long ago was posed the query about what’s your emotions about 2028 and the negotiations with the Teamsters union, I felt her response was hilarious.
“Her response was, properly, we’ve been companions for a very long time, and I’m certain we’ll determine it out. Now, I don’t learn about you, however in case you’re a associate with somebody, you’re employed collectively and also you discuss relationships, You discuss your husband, your spouse. That’s your associate, your girlfriend, your fiance. These are your companions. And you’re employed collectively to achieve success. You’re employed collectively to resolve issues. You’re employed collectively to create alternatives. Now she thinks that that is really a partnership. She’s sadly mistaken. If you end up opening up companies, shopping for companies [Roadie, Happy Returns] to attempt to compete with the core enterprise that has made you the success you will have been for many years upon many years upon many years, that’s not a real partnership.
“We’ve got partnerships with quite a lot of good employers all through this nation. We’ve got partnerships the place employers truly worth the labor that their staff, our members present to them…. There are quite a lot of good employers that we work with that cherish and worth these relationships. UPS will not be certainly one of them.”
—“There was a time at UPS the place they have been truly [urging] our members to usher in what they known as gross sales leads, the place they have been hungry to get new enterprise, the place they really cared in regards to the buyer, the place they really cared about service. And I’ve obtained to let you know, it’s horrifying to see the course this firm goes in. It’s horrifying to see the dearth of empathy from the CEO within the c-suite of UPS. And, you understand, they’ve the balls to ask us, can we work collectively to attempt to stage the taking part in subject with our competitors?
“Like, are you shitting me? You’ve executed a very good job of dismantling the connection between the Teamsters, dismantling the morale at UPS. However but you wish to discuss partnerships? You wanna discuss working collectively? Look, 2028 is gonna be a really, very tough yr for UPS.
“Have a look at who’s operating an organization. Have a look at how a lot cash they’re making. Have a look at how a lot they’re not investing of their enterprise. Have a look at the dearth of urgency to seize new enterprise and take a step again and notice that 2028 is gonna be the hardest yr for UPS.”
—“They’ve launched a PR marketing campaign during the last two weeks. And also you’ve seen it in BigRig (a reference to the Aug. 11 story about Jindel’s 2028 contract prediction), the place they’re on the market pleading their case saying that the Teamsters are too inflexible. The Teamsters ought to acquiesce as a result of they will destroy the bundle supply enterprise. We’re not destroying the bundle supply enterprise. She’s destroying the bundle supply enterprise.”
—“I wish to be clear. We don’t have one fucking partnership with UPS. None in any respect. They’ve requested us to assist them with laws. They’ve been even deceitful in attempting to offer us data on FedEx to go arrange a contest. Properly, we don’t have the time and alternative to try this as a result of we’re so busy taking part in protection in opposition to an organization that hasn’t lived as much as their obligation of the contract. So far as we’re involved, we’re not gonna enable anyone to barter jobs away from us.”
The probability of a strike
—“We’ve not been shy in telling UPS and the general public that we are going to strike to get the most effective contract. We set the bar greater in 2023 and we’ve got to realize extra in 2028.”
—“We’re going to should strike. We’ve got a really wealthy strike and protection fund. However what I’d counsel to all people who’s at UPS proper now’s be part of your native credit score union or financial institution and have a devoted quantity every week taken out as a result of we’re going to pay an enhanced strike profit if and after we do strike UPS. However you will have loads of time proper now to place apart extra funding so that you’re not compromised financially.”
—“We’ve got nothing to lose as a union. We’re poised. We’re positioned. We’re gonna do precisely what we did the final time. We’re gonna have a contract marketing campaign.”
—“I’m not optimistic of coming to a tentative settlement with out putting UPS. I hope the stockholders in Wall Avenue hearken to this, as a result of if I’m a stockholder and I’m dependent upon UPS to earn dividends, it’s going to be some powerful instances for you.”
—“We’ve struck the final 5 years as a Teamsters union over 340 employers nationwide. We’ve prolonged choosing traces to assist our brothers and sisters in comparable industries like Cisco, US Meals, and Republic Waste Administration.”
Confrontation or compromise?
Listener’s Query: “Why is hostility the one platform? The Teamsters to start with began with a handshake settlement, however now the Teamsters discuss trash the UPS on a regular basis on any platform obtainable. Clients learn it, then they resolve to bail. Think about that. I ponder if in case you have thought of what number of clients would flock to the UPS if they really acted such as you like working with them underneath the principles they agreed to at negotiations.”
O’Brien: “That query is fucking positively from a disgruntled UPS supervisor. Little question. Completely little question. No union member of their proper fucking thoughts would ask such a query. , if UPS did the appropriate factor by their members, in the event that they solved issues in a well timed method, in the event that they adhered to the contract, then there’d be no complaints.
“It’d be an ideal world. Nevertheless, UPS causes these issues. UPS chooses to not do the appropriate issues by their members. And if there’s penalties on account of UPS’ unhealthy habits in direction of our members, so be it. And I’d encourage all managers to get the fuck off Higher Unhealthy Concepts.”
The correct to strike over deadlocked grievances
The grievance course of underneath the contract has been a serious Teamsters’ software for forcing quicker motion on promised enhancements or blocking UPS actions. However the union claims UPS constantly stonewalls potential resolutions to put on members down into accepting unfair circumstances, akin to alleged time beyond regulation abuses.
The Teamsters efficiently used the principles to hurry up air con retrofits for five,000 supply vans in hot-weather states after two years of restricted progress. In June, UPS met the deadline for upgrading 2,000 automobiles, with the remaining 3,000 scheduled for system installations by subsequent summer time. UPS additionally rescinded its driver buyout program within the Central area in response to sturdy opposition after which capped its nationwide voluntary separation provide at 7,500 drivers after the Teamsters pushed again laborious on the grounds that buyouts improperly undercut the union as the employees’ bargaining consultant.
Coordinated strike threats by UPS Teamsters within the Central Area and Chicago Native 705 final yr led to grievance settlements within the Central Area and a primary contract for UPS directors and specialists in Chicago.
Most union contracts, together with all UPS dietary supplements excluding the Central Area, prohibit strikes through the lifetime of the contract. However the UPS Central Area grasp contract complement permits the union to strike when the edges attain an deadlock. Grievances undergo panels on the native stage. If no settlement is reached, the difficulty will get kicked as much as a nationwide panel if it offers with union-wide points, or it goes to arbitration if it considerations language within the native complement. To set off the appropriate to strike, the deadlocked grievance should be over Central Area language, not nationwide language.
The software had by no means been used till O’Brien pulled the lever in 2025. When the edges couldn’t agree on a sequence of office points, the Teamsters issued 72-hour strike notices on the Worldport air hub in Louisville, Kentucky, and two different places, and ready to increase picket traces to different air terminals. Administration shortly settled the dispute, which centered on security, seniority and subcontracting at a upkeep elements warehouse.
The 2023 collective bargaining settlement between the United Autoworkers and Stellantis included language giving the union the appropriate to strike over product and funding commitments as soon as a grievance has been taken via the grievance process.
O’Brien spoke extensively about strengthening grievance procedures within the upcoming contract:
— “UPS doesn’t reply to time delicate points. And the one factor UPS understands is the specter of a strike.”
“UPS, true to their character, at all times tries to skirt their obligation underneath the contract. . . So, clearly we’ve got a reputable argument to have the appropriate to strike in each single space, each single grievance process for deadlocked circumstances. That may get UPS to cease dragging their toes [on] grievances they know they need to settle.”
—“We’re gonna demand the appropriate to strike over impasse grievances. . . It’s gonna be as much as UPS how they need these negotiations to go. If they need them to go easy, give us every thing we wish — we go away.”
—“We’re going to be seeking to obtain the appropriate to strike in each single grievance process all through this nation to carry UPS accountable and ensure they’ve a way of urgency to resolve our drawback.”
—“We wish the appropriate to strike over deadlocked grievances as a result of proper now there’s such a backlog of grievances as a result of UPS received’t settle something. The one technique to remedy issues in an expedited method is to have enamel within the grievance process that may enable us to strike over deadlocked grievances.”
On outsourcing
In November, the Teamsters stated it could mount a marketing campaign to assemble proof and cease UPS from funneling packages from its conventional supply community to its Roadie subsidiary, which operates like an Uber for packages. Roadie’s digital platform connects impartial drivers, who present their very own automobiles, with native retail shops fulfilling on-line orders for same-day supply. Union officers accused UPS of subcontracting parcel deliveries to gig drivers working for Roadie, a violation of the 2023 collective bargaining settlement, to keep away from paying time beyond regulation and skirt security legal guidelines.
It additionally accused Completely satisfied Returns, one other UPS firm, of utilizing impartial contractors to deal with e-commerce returns that will have gone via UPS Retailer counters and clerks.
Business observers agree with UPS that Roadie handles same-day, store-to-front door cargo that by no means undergo the corporate’s sortation community, in addition to oversize gadgets that don’t match via automated parcel conveyors.
Within the podcasts, O’Brien additionally stated the union wants to arrange UPS Provide Chain Options, the division liable for world logistics and freight distribution. He additionally focused MNX World Logistics, a supplier of time-critical radiopharmaceuticals and temperature-sensitive medical merchandise that UPS Healthcare acquired in 2023.
—“Provide chain is the place they divert all their non-union work. We’re going to demand that they flip them [Supply Chain and Roadie] over via neutrality or we put them into the [national] settlement. . . . In any other case, you’re not going to get a contract.” (A neutrality settlement is a pact the place an employer guarantees to not intervene with, or marketing campaign in opposition to, a union organizing drive, permitting staff to unionize just by signing authorization playing cards.)
“MNX delivers the identical packages that we ship via the UPS system. MNX was caught being contained in the services with a brown uniform masquerading as a UPS worker. We’ve got an arbitration declare happening proper now.”
(UPS addressed the complaints about subcontracting in a earlier assertion: “We’ve got a number of enterprise items with totally different working fashions to satisfy totally different buyer wants. Our contract with the Teamsters requires that UPS drivers deal with all deliveries for our small bundle enterprise unit immediately and we stay in compliance with the phrases of our settlement. We deal with any disputes via our long-established grievance course of.”)
Automation and autonomous vans
—“They will push for automation. They’re going to push for extra work with much less folks. That is going to be most likely the hardest negotiations that the Teamsters has seen.
—“We’re getting into there as a place of energy as a result of they’re not the powerhouse they as soon as have been. And we’re simply gonna should struggle, struggle, struggle. We’re gonna make calls for. I do know for a reality we’re gonna demand no automation.”
—“AI, automation and the creation of recent jobs goes to be paramount in these subsequent negotiations.”
—“We’re gonna be combating autonomous automobiles, the place CEO Carol Tomé has been outspoken about having autonomous feeder vans on our nation’s highways. However I obtained information for Carol Tomé. We’re gonna struggle it legislatively on a state stage, state by state, like we’re doing in California proper now, and different states.
Healthcare and different advantages
—“UPS members, full-time and part-time, have Cadillac well being plans offered by union well being and welfare funds paid for by the employer the place our members pay nothing in direction of the price of the premium. There are not any hidden deductibles or anything like that. We’ve got the cream-of-the-crop medical. So, to guard that’s gonna be paramount. Additionally, our members, each full time and half time, have the most effective pensions within the nation.”
—“We have to proceed to barter the very best paid wages within the {industry}; and shield, protect and enhance on any and all advantages.”
—“It’s not beneath UPS to attempt to assault these well being and welfare, and pension funds. That’s positively a strike concern we’re going to have to guard and enhance.”
On part-time Employees
About 51% of UPS frontline staff work half time.
—“Earlier than, there have been part-timers who have been making $13.50 to $14 per hour. It was ‘embarrassing’ for a Fortune 500 firm with document earnings when their part-time staff have been on government-assistance packages. We made UPS carry the beginning charge of pay to $21/hour, but in addition reward these long-term part-timers so their wages stored rising. “They deserve the very best wages and advantages. The price of dwelling goes up, particularly in huge cities. We’re going to construct on [the last contract] and get essentially the most for our part-time staff.”
—“There isn’t any doubt that we are going to be making a proposal to extend half time pensions at UPS.”
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