UPS open door for union at truck unit seen smart

Package delivery company United Parcel Service Inc.'s recent decision not to block union attempts to organize its nonunion trucking unit is a gamble analysts said may improve its position in labor contract talks due to start soon.

Analysts said the decision could lead to unionization of less-than truckload (LTL) unit UPS Freight with its 17,000 employees, but added that might not be a bad thing.

Although unionized trucking LTL companies are seen as less flexible and less profitable than their nonunion counterparts, analysts note that UPS faces talks with 230,000 unionized employees represented by the International Brotherhood of Teamsters and may need to show the union it is willing to compromise.


"It seems they are trying to garner good will for the larger contract negotiations that lie ahead," said Peter Smith, an analyst at Morningstar. "If the union feels they are getting a good reception from UPS, it may make them more open to talk."

LTL companies consolidate small loads into a single truck.

Atlanta-based UPS agreed last week to a Teamsters request to move forward talks on the current contract, which is due to expire August 1 2008, and the talks should begin within 40 days.

The world's largest package delivery company also gave the Teamsters a "card check" agreement, under which the union could try to organize a UPS Freight truck terminal and UPS would not block it. If they succeeded, the Teamsters would target other terminals.

"This is a historic victory," said Teamsters spokeswoman Leigh Strope. "Overnite was extremely anti-union, but we have a good relationship with UPS." Continued...