Negotiation Analysis

3544 words 15 pages
May 2, 2010

UPS/Teamsters negotiation in 1997

Introduction In 1997 united parcel service and the Teamsters were on table again after 1993’s contract negotiation. It was common since 1980’s that union sent signals to management about large concessions before every negotiation. Union made it clear before the 1997 negotiations started that "These negotiations are about only one thing and that is making improvements that will give our members the security, opportunities, safety, and standard of living that they deserve" (Witt, Wilson, 1999). In 1996 UPS reported $22.4 billion of sales. 80 percent of the ground package delivery business was under control of united parcel service. UPS had 185,000 Teamsters
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An improvement was definitely needed in this area as well (Schulz, 1997).

UPS strategies To prepare for the 1997 negotiation, Teamster started analyzing management previous and up to date negotiation tactics. Management strategies included shift of more workload to lower wage part timers and also expand subcontracting. Even though company was making profit at the moment, company wanted to save money to increase its total profit (Witt, Wilson, 1999). Management proposed little wage increase than in the past negotiations. Starting with lower wage increase could benefit the company in counterbalancing any workers proposal during the negotiations. Division among part timers and full timers could also benefit management as both sides would have different priorities and will benefit management on the negotiations table (Witt, Wilson, 1999). In 1994, when UPS raise the package weight, many reformers wanted to walk out but many old-guard local leaders urged them not to work out. Management believed that same will happen if the members wanted to strike in this negotiation. Management was under impression that if the top union leadership will want to have a strike the old-guard locals will not support it (Witt, Wilson, 1999) & (Bradford, 1997).

Union strategies Union was well aware of the fact that membership unity was the key for the success of the negotiation. To build membership unity union wanted to make sure they everyone is


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