Teamsters: UPS strike will cost them $10 million a week

Other unions asked to contribute to 'defense fund'

August 12, 1997
Web posted at: 2:52 p.m. EDT (1852 GMT)

Latest developments:

'We are making this strike our strike'
UPS warns it will lay off workers
Two strikers tell their stories
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WASHINGTON (CNN) -- Facing the possibility of a long strike against United Parcel Service and a threat of layoffs, the financially strapped Teamsters asked other labor unions Tuesday to help them set up a $10 million-per-week "defense fund."

A resolution approved by Teamsters leaders "supports the arrangements between the Teamsters union, the AFL-CIO and other unions to establish a defense fund for this battle," Teamsters President Ron Carey told a Washington news conference. His comments came on the ninth day of the walkout against the nation's largest package-delivery company.

Teamsters Press Conference

The AFL-CIO is a confederation of 78 labor unions.

"The defense fund will cover strike benefits for a long strike, if necessary," Carey said. "We estimate the strike benefits will cost about $10 million a week."

Joining Carey was John Sweeney, president of the AFL-CIO, who called UPS a "greedy, ugly and profitable company."

"We are making this strike our strike," Sweeney said, adding that he had contacted other union presidents to line up financial support.

Beginning Thursday, the Teamsters will pay about 185,000 strikers $55 each in weekly strike benefits or more than $10 million a week.

UPS warns it will lay off workers

In other developments Tuesday:

Labor Secretary Alexis Herman briefed President Clinton on the strike, telling reporters afterward that she was somewhat encouraged about prospects for resolving the dispute. Clinton has so far refused to intervene, saying the strike has not yet reached the required standard of imperiling the national health or economy.

No new talks have been scheduled, but Herman said she expected to hear from both UPS and Teamsters representatives either late Tuesday or early Wednesday. Federally mediated talks broke off Saturday.
UPS Chief Executive James Kelly warned that 15,000 Teamsters would lose their jobs if the strike lasts two weeks.

"This is business that is permanently lost. This is business that has gone to competitors, that has gone elsewhere and through the signing of contracts and other deals that our customers and former customers have established with competitors," added UPS spokesman Ken Sternad.

Carey disputed the claim. "I don't think it's accurate (that they are losing business permanently). The post office and the other companies can't manage the volume."

"They shouldn't be dictating; they should be negotiating," he said.

The company took out full-page ads in 44 newspapers, telling its side of the story and accusing the Teamsters of prolonging the strike.

Strike Reaction

Dave Murray - UPS Chief Negotiator
256 K/10 sec. AIFF or WAV sound

Gaye Williams - Teamsters Union
416 K/19 sec. AIFF or WAV sound

Hank Marinelli - Striking UPS employee
512 K/22 sec. AIFF or WAV sound

Two strikers tell their stories

To bolster the Teamsters position, two striking workers from Maryland spoke at the Washington news conference.

"When I started with the company, management promised me a full-time job within two years. I am now in my eighth year," said Rachel Howard, a part-time UPS deliverer and mother of a 15-year-old son.

"This strike is for him and American families everywhere," Howard said, her voice sometimes cracking with emotion. "I am willing to sacrifice for as long as it takes to make sure Americans know we cannot have a part-time America."

Ezekiel Wineglass, who has been a full-time driver for 33 years, said he was nearing retirement but was scared by the UPS proposal to take over the employee pension fund.

UPS has said it wants to create a single pension plan for all UPS workers and withdraw from the multi-employer Teamsters pension plans to which the company contributes.

UPS officials say they want to stop subsidizing the pensions of thousands of retirees whose companies have gone bankrupt.

"Our proposal makes the workers' pensions more secure," said Lea Soupata, UPS vice president of human resources.

Message Board: Can UPS and Teamsters reach an agreement?

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