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UPS may cut 15,000 jobs
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August 12, 1997: 2:59 p.m. ET
AFL-CIO backs Teamsters, pledges $10 million weekly in loans
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NEW YORK (CNNfn) - Striking Teamsters members at United Parcel Service saw the stakes raised Tuesday as UPS laid out the threat of firing more than 15,000 workers.
UPS spokesman Ken Sternad said Tuesday the continued strike is costing the shipper heavily, forcing it to consider job cuts.
"If the strike were to continue to Friday, the impact of the first ten days of the strike is that there would be 15,500 Teamster jobs that would be permanently lost," Sternad said.
"Those are jobs that would no longer be on the payroll if we begin work next Monday and obviously that number would grow as the strike continues."
At a Washington press conference, Teamsters Union President Ron Carey accused UPS of using "intimidation and threats" and doubted that competitors could take the company's place.
"The Post Office and the other companies can't manage the volume," Carey said. "They shouldn't be dictating; they should be negotiating."
The Teamsters got some good news Tuesday when the AFL-CIO said it would lend $10 million per week to the union, strengthening its ability to remain on strike.
"Before the week is out we will have enough loan commitments from other unions, large and small, to finance the worker side of this confrontation for a long strike if that's what it takes," said AFL-CIO President John Sweeney.
Meanwhile, the costs for UPS continued to rise. The shipper, which normally handles 80 percent of the nation's package deliveries, estimates its weekly losses in the hundreds of millions of dollars. Its shipping capacity has fallen to 10 percent of the normal level.
The Teamsters union began the strike nine days ago over issues of full-time jobs, subcontracting and increased wages.
UPS officials say the major sticking point is the union's refusal to accept the company's proposal to create a UPS-only pension fund, removing UPS employees from a multi-employer union pension fund.
Teamsters President Ron Carey has called the proposal a "deal killer."
The union has said that part-time work is the key issue in the strike. More than 60 percent of UPS workers are part-time. The company said Monday it was willing to compromise on that issue but not on the pension fund.
No new talks between the two sides are scheduled for Tuesday, although Labor Secretary Alexis Herman, who has attempted to act as an intermediary, said Tuesday she was hopeful there would be more negotiations soon.
"They both recognize there is much at stake for the workers, for the company and for the American people," she said.
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UPS
Teamsters
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