Teamsters reject UPS’ first economic counterproposal

Proposal involves minimal raises and effective wage cuts to COLAs, union charges

Teamsters ratify UPS contract. (Photo: Jim Allen/FreightWaves)

Call it a game of contract cat and mouse or not, but the Teamsters union strongly attacked UPS Inc.’s economic counterproposal as negotiations resumed in Washington to hammer out a new master contract.

The company’s counterproposal “included minimal raises and overall wage cuts to workers’ cost-of-living adjustments,” the union said Thursday. The Teamsters National Negotiating Committee unanimously rejected what the union called a “disrespectful” package.

The committee told UPS (NYSE: UPS) it will not meet again until the company makes a “realistic and respectful economic offer.” The union on Wednesday presented its initial economic proposal, which it called the “biggest, most lucrative financial proposal ever presented by a labor union.”

It includes wage increases for each year of the five-year contract, additional holidays and more paid time off, pension increases, and the end of a two-tier wage system that the union says penalizes those who lack seniority even though they are performing the same work as their senior counterparts.

“We are not accepting whatever crumbs these executives might throw our way. UPS has made plenty of money,” said Teamsters General Secretary Fred Zuckerman. “Our members have sacrificed everything to make them rich. We are demanding a real offer right now.”

“If UPS wants to negotiate a contract for 1997 working conditions,” said General President Sean M. O’Brien, referring to the year the Teamsters struck UPS for 15 days. “They’re going to get 1997 consequences.”

In a statement, UPS said that “as in any negotiations, reaching consensus on economic proposals requires serious and detailed discussion, as well as give-and-take from both sides. UPS is proud to provide the best pay and benefits package in the industry, and we plan to keep it that way. Both the Teamsters and UPS have publicly acknowledged the strong progress made to date, including the agreements reached on all non-economic topics. These negotiations affect our people, businesses and consumers across the country, which is a responsibility we take seriously.”

Earlier, the Teamsters had announced that it and UPS had agreed to 55 non-economic contractual issues.

Upcoming FreightWaves Events
Compliance

Brokerage Compliance Symposium

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Awards

F3 Awards Dinner

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

October 26, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
FreightTech

F3: Future of Freight Festival

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

October 27, 2026 – October 28, 2026
The Signal at Chattanooga Choo Choo • Chattanooga, TN
Register Now
Compliance Brokerage Compliance Symposium Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
Awards F3 Awards Dinner Oct 26 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now
FreightTech F3: Future of Freight Festival Oct 27 – Oct 28 • The Signal at Chattanooga Choo Choo • Chattanooga, TN

Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.

The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.