Post-Patco Era Vs. Ups And The Teamsters? Labor Movement Essay, Research Paper
Runing caput: POST-PATCO ERA VS. UPS AND THE TEAMSTERS
Post-PATCO epoch vs. UPS and The Teamsters? Labor Movement
Tonya D. Moore
University of Sarasota
Professional Air Traffic Controller Organization ( PATCO ) captivated Americans
in its unsuccessful battle to win the labour motion. The exposure during that
period left a diminution in any type of brotherhood battle. In 1997, United Parcel Service,
Inc. ( UPS ) went on a similar motion that took a different bend for American
labourers. The consequences of this motion non merely contributed to success for UPS
employees, but it besides reversed the Teamsters? representation image among
labourers. Related history of the post-PATCO epoch and the Teamsters, contribute to
an consciousness of the past and present results of the joint venture between UPS
and the Teamsters. Political influences, results, and statistics are related in the
present paper. Besides, informations from the Bureau of Labor Statistics ( BLS ) are examined
as relates to brotherhood engagement in both state of affairss. Decisions sing stairss that
direction can take to avoid work stoppages are besides offered, along with future research
Post-PATCO epoch vs. UPS and The Teamsters? Labor Movement
The present position of the labour motion caused many to lose their
assurance in attempts to protect working Americans. Whether the brotherhood
representation involves the AFL-CIO, the Teamsters, national mugwumps and
independent local brotherhoods the motion is worsening.
Many events alter the manner labourers? think and companies? respond. Whether
the response entailed a work stoppage or an association to a brotherhood, the picks to labourers
were non clear. Directors and politicians took the easy path go forthing labourers
keeping the bad terminal of the stick, by coercing them back to work without a contract.
The replies are non clear and the jobs are non solved for the American
Fichtenbaum and Traynor ( 1997 ) noted that, the attempts of the labour
motion are steadily worsening and companies are trusting more on politicians to
work out their issues. The clip has come for companies and politicians to be held
accountable for their actions and allow labourers command their? rights. ? A recent event
( UPS and the Teamsters? labour motion ) has taken topographic point to assist companies to
understand the jobs of non following with labour motions? petitions and the
loss to companies as a whole. Clearly, future diplomatic schemes need to be
implemented to forestall work stoppages, along with more concerted relationships, because
the cost can go long-run disbursals.
Before the 1980s, the mean brotherhood engagement? s totaled 1,306,300
workers with an norm of 275 work stoppages ( Grimes, 1995 ) . This sum fell after the
post- Professional Air Traffic Controllers Organization ( PATCO ) epoch to an
norm of 407,180 workers involved and 56 work stoppages. Grimes ( 1995 ) , utilizing a
arrested development theoretical account attempted to find if the PATCO work stoppage has significantly
contributed to the worsening figure of major work stoppages, but the empirical grounds
does non bespeak that it has had a important independent consequence. The Reagan
Administration was one factor in the displacement in labour jurisprudence, back uping employers and
non organized labour in 1981. Reagan fired the employees of PATCO for illicitly
contact and he decertified the Professional Air Traffic Controllers Association.
After the largest labour mass meeting in American history, American labourers? hope was
easy disappearing. The PATCO members risked their occupations, pensions, hereafter rights
of employment with the US Government, possible terrible person and group
civil punishments and the heavy load of condemnable countenances. All this with the thought
that they would do the hereafter better for other workers.
The Clinton Administration besides keyed in on issues related to workers?
rights. ? For 20 old ages the rewards of working people have been dead or
worsening? . For excessively many households, even when both parents were working, the
American dream has been stealing off. In the 1992 the American people
demanded that we change, ? ( Clinton declared in his State of the Union reference ) . In
1993, rewards declined an norm of 1.5 per centum for hourly employees and college-
educated workers. The remainder of the universe suffered excessively with impermanent occupations or merely
program lay offs. The consequence of the post-PATCO epoch took? hope? out of the labour
motion. Meyer ( 1994, p.116 ) stated that, ? the pick to stop in 1981 is due to
the to a great extent increased opposition to brotherhoods following the disintegration of PATCO, the
increased legal force per unit area on the Teamsters during the 1980s ( taking to their
reaffiliations with the AFL-CIO in 1987 ) , and the practical death of the
independent national brotherhood by the 1990s. ? The? hope? for labour motions
declined after this event.
In 1907, UPS began supplying private courier and bringing services in
the Seattle, Washington country. Now, UPS is the universe? s largest express bearer, the
universe? s largest bundle bringing company, and a taking planetary supplier of
specialised transit and logistics services. UPS delivers over 12 1000000s
bundles and paperss for 1.7 million transportation clients per twenty-four hours throughout the
United States and in over 200 states. In 1998, the company reported a record of
330,000 employees that delivered more than three billion bundles and paperss
worldwide, bring forthing grosss of 24.8 billion and net income of 1.7 billion.
Despite these fantastic statistics, two old ages ago many employees felt that occupation
security was an issue with a company that consumes one million millions of dollars off of their
perspiration. Today, there are 202,000 ( 62 % ) of UPS employees that are represented by
one of the most powerful brotherhoods, the International Brotherhood of Teamsters
( IBT ) .
Before the1997 success, the Teamsters were non the pick of the working
people. The repute of the Teamsters was less desirable following to the AFL-CIO
due to the higher degree of expertness and resources in the AFL-CIO and the AFL-
CIO success in bettering employee? s working conditions. Cooke ( 1983 ) found
that the Teamsters were besides less likely to win in elections than other brotherhoods
representatives. Many people were reaffiliated with the AFL-CIO during the post-
PATCO epoch. ? Before General President Ron Carey took office in 1992, the brotherhood
lost an norm of 40,000 members for each twelvemonth since 1979? ( The Teamster,
March/April 1997 ) .
Today, the Teamsters are one of the most good known brotherhood representations
following to the AFL-CIO. The Union is made up of working work forces and adult females who
comprise 1.4 million throughout the United States, Canada and Puerto Rico.
Jimmy R. Hoffa, the leader of the Teamsters in 1957-1967, generated a end
before his sudden disappearing, of taking over all transit brotherhoods. In 1964,
the National Master Freight Agreement, heralded his attempts as one of the greatest
achievements in U.S. labour history. Hoffa, Sr. brought attending to the
Teamsters, but he was besides the individual who set the tone for the hereafter UPS
work stoppage. Wilson and Witt ( 1999 ) noted that, in 1962 Hoffa, Sr. started the displacement for
lower-wage and part-time occupations for UPS. Then, in 1982, Hoffa? s old-colleagues
agreed to stop dead the get downing parttime pay at $ 8 per hr ( The Teamster,
November/December 1996 ) . Now, Jimmy P. Hoffa, the General President of the
Teamsters and the boy of the Teamster? s fable, is now undoing his male parent? s epoch
and go oning to followup on the issues that won the UPS work stoppage.
August 4,1997 at 12:01 a.m. was the period when the Teamsters announced
the work stoppage against UPS. This work stoppage changed the? religion? in the labour motion
( Wilson and Witt, 1999 ) . The alteration non merely affected UPS but besides it affected the
assurance in the Teamsters over the AFL-CIO. The Teamsters choice in the
UPS labourers? representation was an first-class pick, despite the factors that set
the tone in 1962 ( lower rewards and parttime work ) . Wilson and Witt ( 1999, p.58 )
noted that, ? at a clip when the American labour motion is fighting to change by reversal
its diminution in rank and strength, the Teamsters? nine-month contract
run at UPS in 1997 demonstrated that the labour can reconstruct its power by
affecting its members, making out for public support, and disputing corporate
power on behalf of all working people. ? This run non merely empowered the
UPS labourers, but besides other labourers from different companies who had an involvement
in these issues. The no fear syndrome was contagious, so, to labourers because the
motion gave? hope? once more to Americans and what they believed to be? justness. ?
Further informations will be provided here to back up the theory that the UPS and
Teamsters? joint venture encouraged the labour motion to go stronger. In
analyzing farther studies and information it will be shown that the attempt did in
fact do a difference and that history ( as relates to the PATCO work stoppage ) does non
ever reiterate itself. It is besides noted here, that directors and politicians need to pay
attending to labourers and the influences that affect them. Political influences,
results, variables and statistics on the attempt will be examined in order to assist
directors deal with future labour motions.
Materials from the United Parcel Service, Inc. 1999 Prospectus was used
here to compare fiscal studies. Information was besides obtained from The
Teamster? s magazine ( 1996 and 1997 ) . Other information was gather from the BLS ( 1999 )
to set up whether the UPS motion changed the degree of brotherhood engagement.
After the two hebdomad s
tricycle, the 185,000 members ( includes 115,000 part-
timers ) won all major issues. The issues included: 20,000 full-time occupation
chances for part-timers, including 10,000 new full-time occupations created from
bing parttime places ; new bounds on subcontracting ; the largest-ever rewards
rises and major additions in pensions under the bing Teamster programs ; and new
occupation safety protections ( The Teamster, October 1997 ) .
At the clip of the work stoppage, House Speaker Newt Gingrich attempted to utilize
tactics similar to those applied by Ronald Reagan during the PATCO labour
motion. The Teamster ( October 1997 ) reported that Gingrich and other
Republican leaders wanted to revenge against the labour motion. Some of the
onslaughts consisted of extinguishing the 40-hour work hebdomad and lease companies
work employees without overtime wage ; allowing corporations to dunk into
workers? pension financess ; interfering in Teamster contract dialogues ; assailing
members? rights to vote for top brotherhood officers ; and assailing Teamsters? right to be
heard ( The Teamster, October 1997 ) . At the clip, President Clinton did non allow
history repetition itself but alternatively ignored the demands of Gingrich by allowing the
motion proceed. Ron Carey, the 1997 General President of the Teamsters,
stated that, ? We have to keep politicians accountable to working people, and non
merely large corporations? ( The Teamster, October 1997 ) .
The result of the motion gave other labourers the will to contend with
direction for their rights and specify the attempt as an American labour motion.
Witt and Wilson ( 1999, p.58 ) reported that, ? Twelve yearss into the two-week,
nationally United Parcel Service work stoppage in August 1997, 50 workers at the RDS
bundle bringing company in Cincinnati voted to fall in the Teamsters Union. ? Witt
and Wilson besides note that, ? In Washington State, 4,000 corrections officers who
had an uneffective, unaffiliated association voted to go Teamsters. ? The
motion encouraged many others to either fall in the Teamsters or contend on behalf
of the workers at UPS. In 1997, Ron Carey emphasized that, ? All American
workers owe their thanks to the 1000s of Teamsters, retired persons, and household
members who made our UPS triumph possible? ( The Teamster, October 1997 ) .
The issues at UPS were non different from the issues of other labourers like
the PATCO members. Since the UPS work stoppage, other brotherhood associations have fought
for similar footings. In 1998 there was the UAW 651 810-742-864-2010 work stoppage
against GM, Delphi E for wellness, safety and subcontracts ; in 1999, the SEIU 535
work stoppage against the American Red Cross for brotherhood busting ; besides in 1999, the
AFSCME 31 618-462-1896 work stoppage against Beverly Farm for $ 5.35/hr wage rate
( LaborNet, 1999 ) . The above work stoppages are a little sample of other brotherhood associations.
As a consequence, so, the Teamsters are non the lone brotherhood representatives doing a
difference when directors and politicians continue to disregard these important homo
The triumph of UPS increased the consciousness of other labourers, but the consequence
on brotherhood rank was surprising. In 1998, BLS ( 1999 ) reported that
brotherhood members in 1997 were at 14.1 per centum and in 1998 lessening to 13.9 % . Besides
BLS ( 1999 ) reported that in 1983 brotherhood rank was at 20.1 % diminishing an
norm of 6.2 % in a 15-year period in 1983. The statistics suggests that a diminution,
but the causes of the diminution are unclear at the present clip.
Summary and Future Research Recommendation
Companies are frequently non cognizant of the branchings of non turn toing to
labourers? issues, alternatively they frequently choose to endure the long term reverberation, as a
consequence, in the market environment and employees? spirit. Companies, such as UPS,
hold learned that non seeking to run into employees? demands can hold negative effects on
the consequences of their operations. UPS depended to a important grade on the
inability to avoid work stoppages and other work arrests by their employees. As their
rivals had grown in size and strength, UPS faced lasting loss of
clients if they were unable to supply continued service. Due to non being able
to run into client demands, their rivals became stronger and their market
portion declined during that period. Consequently, the Teamsters work stoppage resulted in a
lessening in the company? s fiscal and operational position. The work stoppage resulted in a
net loss of $ 211 million and an operating loss of $ 349 million for the month of
August 1997, compared to net income of $ 113 million and an operating net income of
$ 187 million for August 1996 ( Prospectus, 1999 ) . These consequences suggest that
work outing employees? issues in a timely-manner can hold a positive consequence on
employees and clients as opposed to diminishing the spirit of employees and
spliting the market with rivals.
As a director of United Parcel Service, Inc and a past UPS striker in 1997,
it is thought that the undermentioned points are in order to keep effectual
Qs Publicize all events to employees, including fiscal studies, make
occupation posting available, and publicise the benefits that the company offers
to their employees,
Q Cross train employees ( particularly if in brotherhood guidelines ) ,
q Implement studies and concentrate attending on brotherhood members? sentiments,
q Work towards integrating wage/benefit position to all workers and
publicise how additions are tabulated ( harmonizing to senior status day of the month and/or
other variables that may impact rewards ) ,
Q DON? T Lashkar-e-Taiba information go a enigma for employees and, supply the
necessary resources to assist work out jobs,
q Let employees know the BIG PICTURE sing why a company does
things a peculiar manner and be HONEST about jobs, suggestions and
The above lineation may or may non assist to lend to a brotherhood free
environment. But, they may besides assist to avoid future work stoppages if the company is
already runing in a brotherhood scene. Unlike the PATCO state of affairs, the UPS
members did hold an impact on the labour motion and opened the doors to
hereafter attempts? all of which centered on employees? demands and consideration of
these demands early on. With regard to future research attempts, the undermentioned points
look to be in order? which of the above thoughts might hold the biggest impact in
fulfilling employee demands, and when, in peculiar, should they be delivered in
order to maximise their effects. The coveted result, of class, should be a
harmonious employee/management relationship, where trust and duologue can be
used to avoid such things as work stoppages and animus.
Bureau of Labor Statistics. ( 1999 ) . Union Members in 1998. Washington, DC:
Cooke, W.N. ( January 1983 ) . Determinants of the Outcomes of Certification
Elections. Industrial and Labor Relation Review, 36 402-414.
Chezum, B. , ( Winter 1997 ) . Market Power and Price: Theory and Evidence on
Labor Unions. Eastern Economic Journal, 23 ( 1 ) 73-88.
Fichtenbaum, R. H. , & A ; Traynor, T. L. ( Winter 1997 ) . The impact of post-patco
labour dealingss on U.S. brotherhood rewards. Eastern Economic Journal, 23 ( 1 ) , 61-73.
Dirts, P.W. , ( June 1995 ) . The diminution of work stoppage activity and the post-PATCO epoch.
Atlantic Economic Journal, 23 ( 2 ) , 155.
Hatifield, D.E. , & A ; Murrmann, K.F. ( Fall 1999 ) . Diversification and Win Rate in
NLRB Certification Elections. Journal of Labor Research, 20 ( 4 ) , 539-556.
Judis, J.B. , ( 1994 ) . Why your rewards maintain falling. New Republic, 210 ( 7 ) 26-29.
LaborNet Steering Committee ( 1999 ) . LaborNet [ On-line ] . Available:
Meyer, D. ( Summer 1994 ) . The consequence of environmental economic factors on
the pick of brotherhood. Journal of Applied Business Research, 10 ( 3 ) , 113-125.
Partridge, D.M. , & A ; Townsend, A.M. ( Fall 1999 ) . Revisiting Multi-Tier Wagess
Structures: Equity, Employment Mobility, and Tier Effects. Journal of Labor
Research, 20 ( 4 ) , 605-620.
The Teamsters. ( 1997, October ) . Gingrich Gang Retaliates Against Labor.
The Teamsters. ( 1997, October ) . Help Build on The UPS Victory.
The Teamster. ( 1997, March/April ) . Part Time, Full Time, Union Time.
The Teamster. ( 1997, October ) . Teamster Unity Wins UPS VICTORY.
The Teamster. ( 1996, November/December ) . Teamsters Uniting to Make UPS
United Parcel Service, Inc. ( 1999, October ) . Prospectus. Atlanta, GA: Writer.
Wilson, R. , & A ; Witt M. ( Spring 1999 ) . The Teamsters? UPS Strike of 1997:
Constructing a New Labor Movement. Labor Studies Journal, 24 ( 1 ) 58-73.
Union Names and Acronyms
Automobile, Aerospace, and Agricultural Implement Workers of America, United
( UAW )
Service Employees International Union ( SEIU )
State, County and Municipal Employees, American Federation of ( AFSCME )
Teamsters, Chauffeurs and Warehousemen & A ; Helpers, International Brotherhood
of ( IBT )
The recent paper utilized the contents and the informations drawn together to organize
decisions about the post-actions of the UPS events. I am associated with UPS
and the decisions and stairss that are suggested do non needfully reflect the
I thank Geraldine Miller for her penetrations on labour brotherhoods and the
political events, which assisted me in forming my paper. I besides thank Gerald
Vaughn and Sonya McElveen for garnering the stuffs on the Teamsters.
Correspondence refering this article should be addressed to Tonya D.
Moore, Department of Business Administration, University of Sarasota, 5250 17th
Street, Sarasota, Florida 34235. Electronic mail may be sent via Embanet to Tonya