Negotiation Analysis Essay

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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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Union opened with demands that it claimed to be essential for its members. These demand included fair wages and decent pensions plan. At the time full time UPS employees earned $19.50 per hour and also 410 to $11 per hour in fringes. According to the union management their members deserved to be able to live a decent life. Next union concern was about its part time employees. As more than half of the employee working at UPS was part timers, their voice was also strong in the negotiation demands. Union demanded to make these part timers full timers and provide them same wage rate and full timers. Job security was also an issue that union wanted to be addressed in the negotiation (Bradford, 1997). UPS believed in subcontracted to make company more profitable and union was well aware of this fact. In the previous negotiations UPS had won subcontracting provisions and management wanted to keep this benefit in their plate in this negotiation as well. But, union did not like the way things went in the last negotiation, and this time they wanted to make sure that they do not let management take advantage of subcontracting. Union was very strong on the belief that its members deserved the job security which is only possible by getting rid of the subcontracting. Job safety and health improvements were also great concerns to the union in this negotiation. Union believed
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