UPS lays off unspecified number of Teamsters union junior drivers
Citing the so-called “22.4 classification” in the UPS-Teamster contract, the company has sent an unspecified number of junior drivers packing. The classification refers to junior drivers that work for the company Tuesday through Saturday, and UPS advised the press that due to “uneven demand”, the drivers needed to be reassigned. The reason that the move may be made is that according to the contract, junior drivers should be laid off because any senior drivers are affected.
The Teamsters union has opposed the "22.4 classification" in the UPS-Teamster contract because it allows UPS to pay lower wages to part-time workers who are hired after August 1, 2018, compared to the wages of full-time workers who perform the same duties. The "22.4 classification" refers to a hybrid position that combines both driving and delivery duties, which was created in the 2018 contract negotiations between UPS and the Teamsters. The union argues that this classification undermines the traditional seniority system and creates a two-tiered wage structure that unfairly disadvantages newer part-time workers. Teamsters has been pushing for UPS to eliminate this classification and provide equal pay and benefits to all workers who perform the same job functions.
United Parcel Service (UPS) reported a disappointing start to the year with first-quarter earnings revealing a 5.3% drop in revenue and a 31.5% plunge in operating profit compared to last year.