UPS Strike

In August 1997, 185,000 workers organized in the Teamsters labor union went on strike against United Parcel Service (UPS). The strike, which began on August 4 and ended on August 18, made headline and front page news and dominated national politics for 2 weeks. It marked a significant victory for labor in the United States. While the Teamsters made some concessions, on the key questions of wages, pensions, and part-time work they made major gains. In addition, the public sided 2–1 with the workers over the company; and for the first time in decades, inequality and class polarization became prominent issues of public discussion.

This was the first national strike at UPS since the founding of the company in 1907. UPS was founded as American Messenger Service in Seattle, Washington, by Jim Casey, a 19-year-old messenger boy. To grow from a bicycle delivery service to the digitally coordinated, land- and air-based multinational corporation that it is today, the company adopted several strategies, such as keeping operating costs low while ensuring maximum flexibility. These strategies are expedient for management, but they created difficult and stressful work conditions for the workers. There was for long little resistance to the working conditions because the corrupt leadership of the Teamsters union showed no interest in the welfare of its members.

The change occurred when a reform slate headed by Ron Carey won the union elections in 1991. As the 1997 contract approached, UPS workers found themselves pitted against a corporation that had made [Page 1419]about $1 billion in profits in 1996 by squeezing its workers. The key issues that led to the strike were

• A decrease in job security through the creation of more part-time jobs and a tiered workforce. Since part-time jobs were first implemented at UPS in 1962, the composition of the workforce had changed to 60% part-time and 40% full-time. Wages for part-time employees started at $8 and increased to $10, whereas for full-timers it was around $11 and in 2 years reached more than $19. Needless to say, converting full-time to part-time jobs saved UPS a lot of money.
• An increase in subcontracting. Outside contractors were more and more often performing the jobs normally carried out by union members. It relieved the company of paying union wages and benefits and, in some cases, of using company equipment.
• Speed-ups and Fordist/Taylorist methods to maximize worker efficiency. UPS workers are instructed on every aspect of the job, including how to hold the truck keys, which foot to use when exiting the truck, and more.
• A decrease in workplace safety. While UPS offers medical benefits, it had done little to address the injury rate at its facilities. On the contrary, it worked hard to undo Occupational Safety and Health Administration (OSHA) regulations.
• A pension grab. UPS wanted to pull out of the union's multipayer pension plan and replace it with a company plan.

During negotiations, UPS was unwilling to give ground to the Teamsters. As the strike progressed, it became clear that UPS was losing ground economically (the strike cost them about $40 million a day), as well as ideologically (in addition to the public, sections of the media and the business elite also sided with the union). Ultimately, the contract was settled on terms favorable to the union, giving the labor movement its first real victory in decades.

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