UPS, Teamsters Break Off Strike Talks

The Teamsters and United Parcel Service broke off federal mediation Saturday, and both sides indicated a 6-day-old strike that disrupted deliveries nationwide will become a protracted fight.

“At this point, it appears it’s just useless to continue any discussions,” Teamsters President Ron Carey said. “It’s time for us to start digging in.”

James P. Kelly, United Parcel Service’s CEO, first to leave the Federal Mediation and Conciliation Service headquarters with his delegation, said they will return to Atlanta to “make the difficult decisions.”

Kelly said a decision is pending on whether to hire replacement workers.

“We’re willing to do whatever it takes to keep our business strong and provide security for our people,” Kelly said. “But we can’t do any more than that. It would only destroy our business.”

Entering the session, Carey said he would not remain long at the table if the company stuck to its “last, best and final” offer, which the Teamsters have rejected. The union says the company’s proposal doesn’t address the issues of part-time work, subcontracting, wages and benefits.

About two hours later, the parties left the meeting agreeing to maintain contact with federal mediator John Calhoun Wells but with no firm plans to renew talks.

Wells suggested that resolution could be some time in coming: “It ain’t going to happen overnight.”

Labor Secretary Alexis M. Herman was among a number of administration officials who met with Wells at the White House, after talks broke off, to assess the state of negotiations.

“We’re disappointed the parties were unable to resolve their differences,” she said in a written statement. “We continue to urge both parties to show flexibility and a willingness to compromise to end this strike.”

UPS normally handles 12 million parcels and letters daily. The work stoppage’s effect on small businesses has governors and business leaders clamoring for White House intervention.

President Clinton has refused on the ground that the strike has not imperiled the nation’s safety and health--the standard for government intervention under the Taft-Hartley Act.

UPS’ final five-year offer included annual 1.5% wage increases for full-time workers as well as a $3,060 bonus. It also proposed withdrawing from Teamster multi-employer funds and increasing health and pension benefits.

The union, which relies on UPS to help fund the health and pension programs for its members regardless of their employers, rejected out of hand the proposal to set up a separate fund for UPS workers.

“Our plans are fine now, they don’t have a problem with the plans,” Carey said. “What they want to get their hands on is the investment income.”

The union’s main issue is full-time jobs. Fifty-eight percent of UPS employees work part time; their base wage of $8 an hour has not increased since 1982.

“This is an important issue not just for Teamsters or their family, but for every American family,” said Carey, whose mantra throughout the standoff has been “part-time America won’t work.”