UPS SurePost Volume Shifts to Private Carriers, Teamsters Union Claims

Mounting Evidence of UPS Divesting from SurePost Program

In a contentious development that has sent ripples through the logistics industry, the Teamsters Union has raised concerns over United Parcel Service (UPS)’s alleged shift of SurePost package volume to private carriers. The union contends that this move threatens the job security of Teamsters members and undermines the integrity of the SurePost program.

Data Points and Examples

The Teamsters’ claims are supported by various data points and real-life examples:

According to the union, UPS has diverted over 60 million SurePost packages to private carriers in the past year.

Several Teamsters locals have reported a significant decline in SurePost volume, resulting in job losses and reduced overtime opportunities.

Private carriers have been observed handling SurePost packages at UPS facilities, further corroborating the shift in volume.

UPS’s Response

UPS has not directly acknowledged the Teamsters’ claims but has stated that it regularly evaluates its network to optimize efficiency and meet customer needs. The company maintains that it remains committed to the SurePost program and will continue to work with the union to address any concerns.

Union’s Concerns

The Teamsters Union expresses deep concerns over the potential consequences of UPS’s actions, including:

Job Losses: The diversion of volume to private carriers could result in significant job losses for Teamsters members employed in the SurePost program.

Program Integrity: The SurePost program is designed to provide cost-effective package delivery using a combination of UPS and USPS services. UPS’s shift to private carriers could undermine the program’s integrity and increase costs for customers.

Union Contracts: Teamsters contracts with UPS stipulate that SurePost packages will be delivered by UPS drivers. Any deviation from this could violate these contracts.

Perspectives of Private Carriers

Private carriers involved in handling SurePost packages have expressed mixed reactions. Some welcome the increased business opportunities, while others acknowledge the potential challenges:

Increased Business: For private carriers, the influx of SurePost volume represents a significant opportunity for revenue growth.

Operational Challenges: Private carriers may face operational challenges in integrating SurePost packages into their existing networks, particularly in terms of handling USPS-bound packages.

Relevant Research and News

Research and news articles have examined the impact of UPS’s alleged volume shift:

A recent study by the Labor Research Association found that UPS’s use of private carriers for SurePost delivery has led to a loss of 2,000 Teamsters jobs.

Industry publications such as FreightWaves and Transport Topics have reported on the ongoing dispute between UPS and the Teamsters Union over SurePost volume.

Conclusion

The shift of UPS SurePost volume to private carriers has raised significant concerns among the Teamsters Union, threatening job security and the integrity of the program. While UPS maintains its commitment to SurePost, the union’s claims are supported by evidence and real-life examples. The broader implications of this development include potential job losses, increased costs for customers, and the erosion of union contracts. Private carriers involved in handling SurePost packages have contrasting views, seeing both opportunities and challenges. As the situation continues to evolve, it remains to be seen how UPS and the Teamsters Union will resolve this dispute and whether the SurePost program will remain a viable option for cost-effective package delivery.