UPS and Teamsters Discuss Two-Tier Wages, Sunday Deliveries

From the Wall Street Journal:

Weekend package delivery is throwing a wrench in United Parcel Service Inc.’s labor negotiations.

The parcel carrier and the Teamsters union are discussing a two-tier wage system that could have lower-paid workers deliver on weekends. The WSJ’s Paul Ziobro reports the strategy is part of the delivery giant’s hunt for ways to cope with surging e-commerce volumes while keeping costs under control. The majority of UPS packages in the U.S. now go to consumers rather than businesses, which makes delivery more expensive—especially on weekends, when unionized package-truck drivers can earn premium overtime pay. The hybrid driver proposal has caused a rift between some factions within the union, and comes as UPS is trying to finalize one of the largest collective bargaining agreements in the U.S. before it expires this summer.

Source: Logistics Report: UPS’s Sunday Delivery