|
Tentative agreement reached to end UPS strike
August 19, 1997
Web posted at: 1:34 a.m. EDT (0534 GMT)WASHINGTON (CNN) -- The Teamsters union reached a tentative agreement with United Parcel Service, ending a 15-day strike that virtually paralyzed the nation's package-delivery giant, Labor Secretary Alexis Herman announced early Tuesday.
"Today, my faith in the collective bargaining process has been reaffirmed," Herman said at a 12:30 a.m. EDT news conference.
Herman had coaxed the two sides back to the negotiating table Thursday and sat in on several meetings. Using direct pressure and some prodding from President Clinton, the agreement was hashed out during five days of virtually nonstop talks.
David Murray, chief negotiator for UPS, said both sides compromised to reach the deal. "To our employees, we hope to welcome you back very soon," he said.
Teamsters members still must vote on the tentative agreement before it takes effect but, once approved, employees could be back to work in a matter of days, sources told CNN.
Both sides declined to provide details of the agreement, but sources familiar with the details said it was for a five-year contract that increased the base wage for part-time workers and did not include a contentious pension proposal made by the company.
It also would convert thousands of part-time jobs into full- time positions.
Clinton pleased with deal
President Clinton, vacationing on Martha's Vineyard, praised both sides for their "hard work and determination" in reaching an agreement.
"The issues that were at the heart of their negotiations are important to our nation's economic strength and to all Americans," he said in a statement.
The main sticking points had centered around the company's use of part-time, instead of full-time, workers; a UPS proposal to pull out of the Teamsters' multi-employer pension fund; and subcontracting. More than half of the 185,000 striking Teamsters are part-time workers.
Talks repeatedly broke down before a settlement was reached, with each side accusing the other of being inflexible. The walkout began August 4 after no agreement was reached on a new contract to replace one that expired June 30.
Several sticking points
Teamsters President Ron Carey demanded that UPS create more full-time positions. Nearly 60 percent of its employees work part time, earning an average of $11 an hour. Full-time employees earn nearly $20 an hour and can take home $50,000 a year, with overtime.
For its part, the company had proposed moving 10,000 part- time employees to full-time positions and adding another 1,000 full-time jobs.
The strike snarled package delivery and impacted thousands of businesses, large and small. Some companies were forced to lay off workers as the economic impact rippled across the nation.
The Clinton administration ruled out direct intervention to end the strike, saying it did not threaten the nation's economic health or safety. Under the federal Taft-Hartley Act, which governs labor disputes, the president can issue a back-to-work order if those standards are met.
A boon for the U.S. post office
UPS said it lost $200 million to $300 million a week during the strike; the union forked out about $10 million a week in strike benefits.
As the strike dragged on, UPS officials worried that some of the company's customers would never return, after relying on the U.S. Postal Service, Federal Express and Airborne Express for their deliveries.
The strike was an early Christmas present for the Postal Service, which geared up to handle up to 2.4 million extra items per day -- similar to what it handles during the busy holiday season.
The post office's national command center operated 24 hours, seven days a week, shifting airplanes and trucks nationwide to cope with the volume.
The Associated Press contributed to this report.
- Message Board: Can UPS and Teamsters reach an agreement?
- Newsmaker Profile: Ron Carey -- Union Leader, Teamsters
- Newsmaker Profile: James P. Kelly -- CEO, UPS
Related stories:
- Tentative agreement reached to end UPS strike - August 18, 1997
- UPS, Teamsters resume negotiations - August 18, 1997
- UPS overseas: business as usual - August 18, 1997
- Movement, but no agreement, in UPS talks - August 17, 1997
- Big Brown grounded as Teamsters strike UPS - August 3, 1997
Related sites:
Note: Pages will open in a new browser windowExternal sites are not endorsed by CNN Interactive.
|
Sound off on our message boards You said it... |
|
© 1997 Cable News Network, Inc.
All Rights Reserved.