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  • UPS Freight National Negotiations Update
    Updated On: Aug 08, 2018

    Aug 08, 2018 -

    After reviewing the proposed changes, the Teamsters Local 89 E-Board has unanimously voted to recommend a no vote on the UPS Freight National Master Agreement.

    Below are some of the items we have concerns with. A document with all proposed changes is attached to this article.


    Early in UPS Freight negotiations the IBT put UPS on notice that if subcontracting wasn’t fixed, UPS would not get an agreement. This was a bold and necessary stance to take for our members at UPS Freight, but unfortunately the line was not held. The Tentative Agreement still does not properly address the massive subcontracting issue our members face at UPS Freight, and for this reason alone we must recommend that the contract be rejected.

    General Wages

    Wages at UPS Freight are currently below what drivers at FedEx Freight receive. It is unacceptable for our members to receive less in wages than what their direct non-union competition receives. Further, the contractual raises in the Tentative Agreement total to just $2 dollars over the five-year contract, which doesn’t even keep up with the current rate of inflation. Lastly, the mileage rates only increase 1/4th of a cent in the agreement.

    Two-Tier Wages

    As if the general wage increases were not enough, this Tentative Agreement creates a two-tier wage structure for UPS Freight. If this agreement is ratified, new drivers will top out at $28.65, nearly two dollars below the $30.85 rate drivers today will make. Local 89 strongly opposes the creation of any two-tier wage systems in our contracts.


    The Tentative Agreement fails to address one of our UPS Freight members biggest concerns; cost of healthcare. Our members at UPS Freight pay a monthly premium, while members at UPS do not. As the parent company is the same, there is no reason that UPS Freight members should have to continue paying premiums that regular UPS members do not.


    In the current UPS Freight Contract a member must work 1500 hours per year to receive their pension credit. In the new Tentative Agreement, that number of hours has been increased to 1800. This is a massive concession that will unnecessarily make it more difficult for our members to attain their pension credit each year.


    For these reasons, as well as many others, Teamsters Local 89 recommends a NO VOTE on the UPS Freight National Master Agreement.


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