UPS, Union Weighing Addition of Sunday Delivery

UPS is considering the possibility of a two-tier wage structure that would allow lower-paid drivers to make Sunday deliveries, which the U.S. Post Office has been doing primarily for Amazon since November 2013, according to the Wall Street Journal.

The proposal is being discussed in contract negotiations with the Teamsters Union, which represents 280,000 UPS employees including most of its drivers and material handlers. It has caused contention among squabbling factions within the powerful union, including the removal of leaders who disagree with the proposal, the WSJ reports.

So-called “hybrid drivers” would work part time – including Sundays – and start out at the low end of the union pay scale. Some elements of the Teamsters complain that cuts out full-time driver who could make up to $74 an hour by earning double time.

UPS would not comment on the proposal for Sunday delivery as it involves ongoing labor negotiations. It began offering Saturday delivery in 2017 to 50% of the U.S. population in 4,700 cities and towns in order to meet demand and better compete with both the USPS and FedEx, which both offer the service.

By the end of 2018, UPS’s Saturday operations will cover 60% of the U.S. population in more than 5,800 cities and towns, a spokesman said.

As the USPS has been making Sunday deliveries for three and a half years, consumers by now are used to the idea of packages being dropped off on what had been a day of rest. And if UPS and the union come to terms on adding it to the new contract, FedEx surely won’t be far behind.

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