Subject: Labor Relations INK July 2023

July 28, 2023

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O’Brien’s Yellow Legacy

Labor Relations Insight by Nancy Jowske

 

From Teamsters.org


July 24, 2023 (WASHINGTON) – The Central States Health and Welfare Fund agreed Sunday to extend health care benefits for workers at Yellow Corp. operating companies YRC Freight and Holland, under intense pressure from Teamsters General President Sean M. O’Brien and General Secretary-Treasurer Fred Zuckerman.


The extension of health care benefits for Teamsters and their families averts a strike at the freight companies, which could have begun on Monday after Yellow failed to make contractually obligated benefit payments of $50 million to the Central States on July 15. 


Industry experts continue to speculate on why Sean O’Brien seems so determined to see Yellow sink on his watch. Given the “intense pressure” O’Brien placed on his Central States golf buddies on Sunday, Yellow is still doomed unless the company can show some hope of a deal with the IBT on consolidating parts of the cobbled-together Yellow network. For eight months now, O’Brien has refused to consider the company’s “One Yellow” plan, eliminating many network redundancies while directly impacting the job descriptions of just 3% of Yellow’s represented drivers. And to be clear, while Hoffa made hefty concessions on pay and benefits to Yellow for two decades, he only allowed the consolidation of Roadway in 2009 under duress. He was otherwise just as resistant as O’Brien to the full integration of other Yellow acquisitions. We’ll never know if full consolidation could have saved the troubled company, but it would undoubtedly have made it more competitive. (For a thoughtful examination of the Teamsters role in killing Yellow, see this piece in FreightWaves.)


For the past eight months, while current Yellow executives publicly scrambled to prevent the biggest bankruptcy in American trucking, O’Brien has not said or done much to reassure Yellow drivers that their livelihoods matter to their union. In a June 12 video, he said as much: “Sometimes a bad job isn’t worth it anymore.” (Worth it to whom, one might ask.) Even as he asserts “the members have spoken,” O’Brien wasn’t quoting Yellow drivers about the worth of their jobs; he was telling them what he had decided for them. (And for those new to the labor movement and still unfamiliar with how unions work… that’s how unions work.) Two weeks later, on his Twitter feed, O’Brien posted a headstone showing Yellow’s death in 2023, which must have been hilarious to those 22,000 Teamsters whose jobs will soon be buried with it. For his part, O’Brien has stated that from now on, any company that hires a Teamster driver is going to have to pay heartily for that privilege, or else.


The company has repeatedly called on the IBT to let drivers vote on the “One Yellow” plan, and the IBT has said no for good reason; historically, rank-and-file voting has been somewhat problematic for IBT leaders. And right now, the IBT needs a united front behind O’Brien and what matters most to him – ratification of the new UPS tentative agreement, flicking spitballs at Amazon, and the O’Brien Legacy. If message boards are any indication, Yellow drivers are split down the middle on whom to despise more – O’Brien or Yellow executives. However, they seem universally peeved about being left out of the “One Yellow” discussion and none too happy about losing their jobs.


IBT faithful are quick to say there are plenty of union truck driving jobs out there right now for these drivers, and with better pay and benefits than Yellow. However, industry experts clap back that the three unionized shops most likely to hire these drivers – ArcBest, TForce, and UPS – won’t be hiring that many drivers anytime soon and may soon slow their hiring indefinitely. And if there are so many great union driving opportunities out there, why did these 22,000 skilled, experienced drivers chooseto keep driving for Yellow? Is it possible that some work rule concessions might be palatable to most of them to save a job they seem to value?

Most of these Yellow drivers will end up in non-union shops like Walmart where (gasp!) they won’t have “a voice,” “a seat at the table,” “a binding contract,” “respect,” or a fist-pumping, fast-cussing, corporate-busting, self-proclaimed SOB like Sean O’Brien intensely pressuring his cronies on their behalf. The good news is those union-free shops will likely pay Yellow drivers “union wages” anyway, unlike their prior Teamster job at Yellow, and they will be saving well over a thousand dollars annually in dues.


Yellow may find some path forward with O’Brien’s help. It’s more likely he’ll spend the next month basking in the glory of his “game-changing” UPS agreement while Yellow goes under. The Central States payment on Sunday happened as it did, so the loss of 22,000 Teamster jobs wouldn’t cloud the UPS announcement on Tuesday. Going into his showdown with UPS, O’Brien needed to look like he’d kill the hostages. He couldn’t appear to go soft on Yellow or, more importantly, show any compassion for Yellow drivers. Consider them collateral damage in O’Brien’s war on corporate America. Let’s see if he steps up for them now.

Down To The Wire: The Teamsters And A Crucial Week Of Negotiations

by Kimberly Ricci

UPDATEAfter we posted our original article on this subject, the union and UPS reached a tentative deal on July 25.  More details are at the bottom of the page.


The Teamsters threatened a conflict-filled summer, and so far, they are delivering.


Over the past month, the union authorized strikes at TForce Freight, Yellow, and UPS. For the former two companies, strikes have been averted in different ways. TForce and the union reached a new 5-year contract, and Yellow pledged to pay an overdue $50 million payment to cover workers’ health and pension benefits.


For UPS, negotiations remain unresolved, with conflict running high on both sides. The stakes are huge, too, not only for UPS but for consumers and the economy.


The breakdown: Talks between the Teamsters and UPS began in April and reached a standstill on July 5, with both sides pointing fingers at the other. The union vowed to strike on Aug. 1 if a deal isn’t reached, and the two sides will resume talks on July 25. 


The fallout: A strike by 340,000 Teamsters members would cause substantial financial strife for the company, which suffered a $600 million loss during the 15-day 1997 strike. 


Fast forward to 2023, and UPS handles 6-7% of the daily U.S. GDP, which is at least 24 million packages daily. No competitor is capable of absorbing that load.


Teamsters President Sean O'Brien darn well knows this, and he believes that a UPS strike could tip the U.S. economy into recession. This past weekend, Mr. Militant further declared, "[N]ow it's time to pulverize." 


According to O’Brien, "95% of the contract" has been settled. This includes agreement on55+ non-economic details such as mandatory overtime, worker holidays, and the elimination of two-tier wages. UPS detailed plans for improved truck cooling systems.


A crucial sticking point: Money, of course. The union demands a $25 per hour minimum wage for part-timers, who currently begin at $16.20 per hour but average around $20, which O’Brien labels as “part-time poverty.”


Butt out, Biden: The Teamsters claim to have straight-up asked President Biden "on numerous occasions" to keep his nose out of UPS bargaining and not intervene. That shouldn’t be too surprising, considering Biden’s role in averting a nationwide railway strike byforcing a deal that was opposed by unions and didn’t satisfy a core demand of workers, who walked away without sick pay.


What of non-union UPS Workers? In the event of a strike, 160,000 non-union workers of UPS will unavoidably pick up overtime shifts. UPS reportedly beefed up the training for these workers, who can only fill part of the service gap.


On the horizon: Amazon isn't expected to be severely affected by a UPS strike since the online retailer delivers at least 2/3 of its own daily haul. Still, O'Brien warns that the Teamsters will soon intensify their attempts to unionize the online mega-retailer.


The Teamsters also want the eventual UPS outcome to influence the Big Three renewal negotiations that began on July 14. It’s no wonder, then, that UAW President Shawn Fain recently swooped into a Teamsters rally. The back-scratching has begun.


UPDATEOn July 25th, the Teamsters and UPS reached a tentative deal to avoid a strike. O’Brien was quick to claim victory by cheering that UPS will pony up “$30 billion in new money” for the new agreement, which O’Brien argues has “changed the game” for the entire labor movement.


The details, however, might tell a different story, and the true cost of the agreement won’t be reported by UPS until August 8 when the company reveals its second-quarter earnings. Here are details unveiled thus far:


  • UPS committed to adding 30,000 union jobs in the next five years. That will include 7,500 full-timers, yes, but consider that UPS has already reportedly added 100,000union jobs over the past five years, which is a 7% increase as opposed to the 2% coming for the new contract. So, it’s not exactly something to brag about, but that’s nonetheless what O’Brien is doing, no doubt to pump up union PR for other upcoming battles.

  • The union claims wage boosts of up to $49 per hour for top full-time drivers and increases from $15 to $21 per hour for new part-time drivers. Notably, however, those wage boosts for full-timers will be spread over five years, and this might not be as good of a deal as the Teamsters claim. In other words, these might only be raises that will end up covering inflation, but again, we’ll have to wait until the final numbers roll out before all is clear.

  • The tentative contract appears to stipulate that a key demand – air-conditioning in vehicles – will only be met for vans and package cars that will be “purchased after Jan. 1, 2024.” The older vehicles, which seem to remain the vast majority of them, will only receive “two fans and air induction vents in the cargo compartments.”


Will this tentative deal be ratified by a Teamsters vote, considering that the details could very well disappoint union members? Stay tuned.

Balancing Act: Meeting Business Needs Amid Increasing Union Organizing

by Michael VanDervort

In the dynamic world of labor relations, recent events have underscored the importance of strategic management and proactive engagement. With union activity on the rise, managers must stay informed and prepared.


The Teamsters Union has expanded its “strike” against Amazon, highlighting the importance of maintaining a positive work environment and addressing employee concerns effectively. This is a reminder for managers to foster open lines of communication with their teams.


Amazon is also navigating a labor complaint regarding its bargaining process with the ALU. This situation underscores the value of engaging in constructive dialogue with unions. Managers should view these interactions as opportunities to build stronger relationships and foster a harmonious workplace.


On the political front, young organizers have been discussing unions with President Biden and Senator Bernie Sanders. This development highlights the need for managers to stay abreast of political trends that could impact labor relations and to be prepared to adapt to potential policy changes.


Acting Secretary of Labor Julie Su has identified Pittsburgh as a model for investment in physical and workforce infrastructure. This is particularly relevant for managers in areas with a strong union presence, as it indicates potential shifts in labor relations management.


The National Labor Relations Board (NLRB) has reached an interim settlement agreement with Starbucks, requiring the company to reinstate certain employees and cease further firings at two Pittsburgh stores. This development underscores the importance of adhering to labor laws and treating employees fairly.


Amid these developments, we see a case in Chicago where El Milagro, a popular tortilla maker, has settled with its workers after a complaint was filed with the National Labor Relations Board (NLRB) in March. The workers alleged that El Milagro management threatened to close the plant or take away vacation days if they continued organizing. The settlement averts a trial, including El Milagro posting signs in English and Spanish reiterating the workers’ federally protected right to form a union.


El Milagro has maintained its innocence throughout the process, stating, “El Milagro has always complied with the law and will continue to do so. Our company has an open-door policy to address any employee concerns, and we act accordingly. This policy reflects our values and commitment to continuous improvement in the workplace.”


This case serves as a reminder that while businesses must maintain open lines of communication with their employees, ensuring that all actions comply with labor laws is equally important. It's also a testament to the fact that even in the face of allegations, maintaining a stance of cooperation and commitment to employee welfare can lead to resolutions that respect both the rights of workers and the needs of the business.


With these stories in mind, it's clear that the labor relations landscape is ever-evolving. As managers, it's our responsibility to stay informed, act by the law, and strive for a harmonious balance between the needs of our businesses and the rights of our employees. Let's continue to learn from these developments and work towards fostering a positive and respectful work environment for all. Managers should stay informed, adhere to labor laws, engage constructively with unions, and strive to create a positive work environment that respects and values human contribution.

Score Board

Who are the winners (and losers) of the labor movement? Don't guess, just check the LRI Scoreboard

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History Repeats Itself: AI Fueling Labor Dissent Is A Tale As Old As Time

by Kimberly Ricci

Imagine being paid one day’s wages to train AI to do your job for as long as your workplace shall stand and with no further payment to you. It sounds preposterous, yes. Yet the fear that this possibility, which we will discuss in a moment, sparks might be one of the most relatable conundrums to surface from the entertainment industry. 


As our own Michael VanDervort recently wrote of the radio industry, the threat of AI taking over human jobs not only provides fertile ground for union infiltration but also sparks concerns within industries far and wide. Hollywood might seem distant from everyday concerns. Yet the ongoing historic double-strike of writers and actors is worth noting for how workers everywhere might respond to the AI-dominated future.

Naturally, unions are watching and waiting to capitalize upon this unease. Already, the Teamsters expressed "solidarity" for SAG-AFTRA and WGA, as have the IATSE and DGA, along with the UAW, CWA, SEIU, and the largest nurses union in the U.S. 


The results of this battle could portend how Big Labor tackles AI in the workplace for years to come. One can imagine, for example, the UAW following up on Big Three negotiations by taking up concerns of newly unionized professors who are grappling with increased workloads from AI-injected student paper submissions.


Let’s get back to the above twin strike with two dilemmas worth noting:


One day of pay for an “eternity” of ownership? SAG-AFTRA claims that the Alliance of Motion Picture and Television Producers proposed for performers “to be scanned” by studios, and that the resulting images (and a person’s likeness) could be used indefinitely and without further compensation within any future project. 


This is a plight that has been likened to a recent Netflix Black Mirror episode, "Joan is Awful," which sees a woman's likeness replicated for entertainment without her consent. That the issue is breaking grounds on TVs and movie screens may be sheer coincidence but no less relevant to widespread AI-related fears in the workplace.


History repeats itself with new residual payment structures: Technology taking over jobs is, sadly, nothing new. In the 1850s, the now-defunct International Typographical Union began representing the printing trade, which slowly saw workers fall by the wayside due to technological advances. The typographer of yesteryear compares to countless current occupations, and TV happens to be the most visible example at this moment.


One can thank the explosion of streaming services and so-called “cord cutting” by consumers for that visibility. The new residual payments, however, do not bode well for workers. Actors on Netflix’s long-running Orange Is The New Black series recently revealed the reality of digital streaming, which has all but eliminated acting residuals. Some popular Netflix actors have even had to hold onto their day jobs.


It’s no wonder, then, that unions are seizing onto these vulnerabilities. If we’ve learned anything from the past few years, it’s that every industry is vulnerable to union activity, and the challenge of AI will open more new doors for organizing. These effects will last long after the cinematic thrill of watching Oppenheimer and/or Barbie fades.

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About Labor Relations INK


Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


If you use content from this newsletter please attribute it to Labor Relations Institute and include our website: http://www.LRIonline.com 


Contributing editors for this issue: Nancy Jowske, Michael VanDervort and Kimberly Ricci 


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

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