UPS Strike Discussions Yield Signs of Progress

Seeking an end to a 12-day strike disrupting deliveries for millions of Americans, the Teamsters and United Parcel Service talked into the early morning hours today amid some signs of progress.

David Helfert of the Federal Mediation and Conciliation Service said early today that the “discussions were substantive and detailed.”

He said the talks were being recessed for a few hours to allow “some number crunching” and that they were to resume 8 a.m. EDT today.

Billed as a discussion rather than negotiations when they resumed Thursday after a four-day hiatus, the talks took on a bargaining tone and lasted more than 16 hours.

“The talks continue,” Susan King, a special assistant to Labor Secretary Alexis M. Herman, told reporters Thursday night. “The parties are working hard on the issues.”

Teamsters spokesman Steve Trossman said it was still premature to expect a settlement. “But we’re certainly glad to see any sign that the company is going to get to the table and actually seriously negotiate,” he said.

Herman, who persuaded the parties to return to the table, said earlier that “their presence here today is a clear signal of their commitment to redouble their efforts to try to reach a settlement.”

With significant differences over pensions and part-time workers dividing the union and the company, it was hoped that the off-the-record discussions with a mediator would lead to common ground.

“During informal discussions, we’ll talk about anything that anyone wants to talk about, and we’ll have the opportunity to talk about anything we want to talk about,” UPS Chief Executive Officer James P. Kelly said in a telephone interview from Atlanta.

Teamsters President Ron Carey canceled an appearance at a rally in Atlanta and Herman settled in at another room in the hotel where the talks were being held, canceling a scheduled trip today to her hometown, Mobile, Ala.

If the informal talks yield progress, Kelly said, the company is willing to consider a deal that could be substantially different from what UPS has insisted was its “last, best and final” offer.

“If those informal discussions lead us to believe that the negotiations could be concluded at some point in time, then the last, best and final offer would cease to exist,” Kelly said.

Later, the company stressed that, although it was exploring all options in the informal talks, there was no change in its formal negotiating position. The company has insisted its last offer should be voted on by its workers.

UPS has invested a lot of energy in promoting its proposal to boost workers’ pensions by withdrawing from the Teamsters multiemployer benefits plans.

Asked if leaving that component out of a final proposal would represent a loss for the company in the standoff, Kelly replied:

“If we get an agreement reached that gets our people back to work and allows us to compete long-term, I consider that a gain for us and a gain for our people.”

The strike by 185,000 Teamsters has crippled the package delivery giant, which normally handles 12 million bundles and letters daily.

Pressure was increasing as the company’s losses climbed into the millions of dollars.

The Clinton administration has urged both parties to settle their differences, insisting it would not be appropriate for the government to end the strike.

Meanwhile, the Independent Pilots Assn. warned UPS customers that even if the Teamsters strike is settled, service could soon be interrupted again. UPS’ 2,000 union pilots have been operating without a contract since December 1995 and the company says it won’t change its offer.

A recess in mediated talks called in June is expected to end by September. Then, after a 30-day cooling-off period, the pilots would be able to strike.

“Since Aug. 4, the Teamsters have been on strike and we have honored their pickets,” IPA President Bob Miller said. “The day may soon come where we go out on strike and they honor ours.”