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Running head: POST-PATCO ERA VS. UPS AND THE TEAMSTER Post-PATCO era vs. UPS and The Teamsters? Labor Movement Tonya D. Moore University of Sarasota Abstract Professional Air Traffic Controller Organization (PATCO) captivated Americans in its unsuccessful struggle to win the labor movement. The exposure during that period left a decline in any type of union struggle.
In 1997, United Parcel Service, Inc. (UPS) went on a similar movement that took a different turn for American laborers. The results of this movement not only contributed to success for UPS employees, but it also reversed the Teamsters? representation image among laborers. Related history of the post-PATCO era and the Teamsters, contribute to an awareness of the past and present outcomes of the joint venture between UPS and the Teamsters. Political influences, outcomes, and statistics are related in the present paper. Also, data from the Bureau of Labor Statistics (BLS) are examined as relates to union involvement in both situations.
Conclusions regarding steps that management can take to avoid strikes are also offered, along with future research recommendations Post-PATCO era vs. UPS and The Teamsters? Labor Movement Introduction The present status of the labor movement caused many to lose their confidence in efforts to protect working Americans. Whether the union representation involves the AFL-CIO, the Teamsters, national independents and independent local unions the movement is declining. Many events alter the way laborers? think and companies?
respond. Whether the response entailed a strike or an affiliation to a union, the choices to laborers were not clear. Managers and politicians took the easy route leaving laborers holding the bad end of the stick, by forcing them back to work without a contract. The answers are not clear and the problems are not solved for the American laborers.
Fichtenbaum and Traynor (1997) noted that, the efforts of the labor movement are steadily declining and companies are relying more on politicians to solve their issues. The time has come for companies and politicians to be held accountable for their actions and let laborers control their? rights. ? A recent event (UPS and the Teamsters? labor movement) has taken place to help companies to understand the problems of not complying with labor movements? requests and the loss to companies as a whole.
Clearly, future diplomatic strategies need to be implemented to prevent strikes, along with more cooperative relationships, because the cost can become long-term expenses. Literature Review Before the 1980 s, the average union involvement? s totaled 1, 306, 300 workers with an average of 275 strikes (Grimes, 1995). This total fell after the post- Professional Air Traffic Controllers Organization (PATCO) era to an average of 407, 180 workers involved and 56 strikes.
Grimes (1995), using a regression model attempted to determine if the PATCO strike has significantly contributed to the declining number of major strikes, but the empirical evidence does not indicate that it has had a significant independent effect. The Reagan Administration was one factor in the shift in labor law, supporting employers and not organized labor in 1981. Reagan fired the employees of PATCO for illegally striking and he de certified the Professional Air Traffic Controllers Association. After the largest labor rally in American history, American laborers? hope was slowly vanishing. The PATCO members risked their jobs, pensions, future rights of employment with the US Government, possible severe individual and group civil penalties and the heavy burden of criminal sanctions.
All this with the idea that they would make the future better for other workers. The Clinton Administration also keyed in on issues related to workers? rights. ? For twenty years the wages of working people have been stagnant or declining? . For too many families, even when both parents were working, the American dream has been slipping away. In the 1992 the American people demanded that we change, ? (Clinton declared in his State of the Union address).
In 1993, wages declined an average of 1. 5 percent for hourly employees and college- educated workers. The rest of the world suffered too with temporary jobs or just plan lay offs. The effect of the post-PATCO era took? hope? out of the labor movement.
Meyer (1994, p. 116) stated that, ? the choice to end in 1981 is due to the heavily increased resistance to unions following the dissolution of PATCO, the increased legal pressure on the Teamsters during the 1980 s (leading to their re affiliations with the AFL-CIO in 1987), and the virtual demise of the independent national union by the 1990 s. ? The? hope? for labor movements declined after this event. In 1907, UPS began providing private messenger and delivery services in the Seattle, Washington area.
Now, UPS is the world? s largest express carrier, the world? s largest package delivery company, and a leading global provider of specialized transportation and logistics services. UPS delivers over 12 millions packages and documents for 1. 7 million shipping customers per day throughout the United States and in over 200 countries. In 1998, the company reported a record of 330, 000 employees that delivered more than three billion packages and documents worldwide, generating revenues of 24. 8 billion and net income of 1. 7 billion. Despite these wonderful statistics, two years ago many employees felt that job security was an issue with a company that consumes billions of dollars off of their sweat.
Today, there are 202, 000 (62 %) of UPS employees that are represented by one of the most powerful unions, the International Brotherhood of Teamsters (IBT). Before the 1997 success, the Teamsters were not the choice of the working people. The reputation of the Teamsters was less desirable next to the AFL-CIO due to the higher level of expertise and resources in the AFL-CIO and the AFL- CIO success in improving employee? s working conditions. Cooke (1983) found that the Teamsters were also less likely to win in elections than other unions representatives.
Many people were re affiliated with the AFL-CIO during the post- PATCO era. ? Before General President Ron Carey took office in 1992, the union lost an average of 40, 000 members for each year since 1979? (The Teamster, March/April 1997). Today, the Teamsters are one of the most well known union representations next to the AFL-CIO. The Union is made up of working men and women 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 goal before his sudden disappearance, of taking over all transportation unions. In 1964, the National Master Freight Agreement, heralded his efforts as one of the greatest accomplishments in U. S. labor history. Hoffa, Sr.
brought attention to the Teamsters, but he was also the person who set the tone for the future UPS strike. Wilson and Witt (1999) noted that, in 1962 Hoffa, Sr. started the shift for lower-wage and part-time jobs for UPS. Then, in 1982, Hoffa? s old-colleagues agreed to freeze the starting part-time wage at $ 8 per hour (The Teamster, November/December 1996). Now, Jimmy P.
Hoffa, the General President of the Teamsters and the son of the Teamster? s legend, is now undoing his father? s era and continuing to follow-up on the issues that won the UPS strike. August 4, 1997 at 12: 01 a. m.
was the period when the Teamsters announced the strike against UPS. This strike changed the? faith? in the labor movement (Wilson and Witt, 1999). The change not only affected UPS but also it affected the confidence in the Teamsters over the AFL-CIO. The Teamsters selection in the UPS laborers?
representation was an excellent choice, despite the factors that set the tone in 1962 (lower wages and part-time work). Wilson and Witt (1999, p. 58) noted that, ? at a time when the American labor movement is struggling to reverse its decline in membership and strength, the Teamsters? nine-month contract campaign at UPS in 1997 demonstrated that the labor can rebuild its power by involving its members, reaching out for public support, and challenging corporate power on behalf of all working people. ?
This campaign not only empowered the UPS laborers, but also other laborers from different companies who had an interest in these issues. The no fear syndrome was contagious, then, to laborers because the movement gave? hope? again to Americans and what they believed to be? justice. ? Further data will be provided here to support the theory that the UPS and Teamsters?
joint venture encouraged the labor movement to become stronger. In examining further reports and information it will be shown that the effort did in fact make a difference and that history (as relates to the PATCO strike) does not always repeat itself. It is also noted here, that managers and politicians need to pay attention to laborers and the influences that affect them. Political influences, outcomes, variables and statistics on the effort will be examined in order to help managers deal with future labor movements.
Materials from the United Parcel Service, Inc. 1999 Prospectus was used here to compare financial reports. Information was also obtained from The Teamster? s magazine (1996 and 1997). Other data was gather from the BLS (1999) to establish whether the UPS movement changed the level of union involvement.
After the two week strike, the 185, 000 members (includes 115, 000 part- timers) won all major issues. The issues included: 20, 000 full-time job opportunities for part-timers, including 10, 000 new full-time jobs created from existing part-time positions; new limits on subcontracting; the largest-ever wages raises and major increases in pensions under the existing Teamster plans; and new job safety protections (The Teamster, October 1997). At the time of the strike, House Speaker Newt Gingrich attempted to use tactics similar to those applied by Ronald Reagan during the PATCO labor movement. The Teamster (October 1997) reported that Gingrich and other Republican leaders wanted to retaliate against the labor movement.
Some of the attacks consisted of eliminating the 40 -hour work week and letting companies work employees without overtime pay; permitting corporations to dip into workers? pension funds; interfering in Teamster contract negotiations; attacking members? rights to vote for top union officers; and attacking Teamsters? right to be heard (The Teamster, October 1997). At the time, President Clinton did not let history repeat itself but instead ignored the demands of Gingrich by letting the movement proceed.
Ron Carey, the 1997 General President of the Teamsters, stated that, ? We have to hold politicians accountable to working people, and not just big corporations? (The Teamster, October 1997). The outcome of the movement gave other laborers the will to fight with management for their rights and define the effort as an American labor movement. Witt and Wilson (1999, p. 58) reported that, ? Twelve days into the two-week, nationwide United Parcel Service strike in August 1997, fifty workers at the RDS package delivery company in Cincinnati voted to join the Teamsters Union. ? Witt and Wilson also note that, ?
In Washington State, 4, 000 corrections officers who had an ineffective, unaffiliated association voted to become Teamsters. ? The movement encouraged many others to either join the Teamsters or fight on behalf of the workers at UPS. In 1997, Ron Carey emphasized that, ? All American workers owe their thanks to the thousands of Teamsters, retirees, and family members who made our UPS victory possible? (The Teamster, October 1997). The issues at UPS were not different from the issues of other laborers like the PATCO members. Since the UPS strike, other union affiliations have fought for similar terms.
In 1998 there was the UAW 651 810 - 742 - 864 - 2010 strike against GM, Delphi E for health, safety and subcontracts; in 1999, the SEIU 535 strike against the American Red Cross for union busting; also in 1999, the AFSCME 31 618 - 462 - 1896 strike against Beverly Farm for $ 5. 35 /hr pay rate (LaborNet, 1999). The above strikes are a small sample of other union affiliations. As a result, then, the Teamsters are not the only union representatives making a difference when managers and politicians continue to ignore these crucial human issues. The victory of UPS increased the awareness of other laborers, but the effect on union membership was surprising. In 1998, BLS (1999) reported that union members in 1997 were at 14. 1 percent and in 1998 decrease to 13. 9 %. Also BLS (1999) reported that in 1983 union membership was at 20. 1 % decreasing an average of 6. 2 % in a 15 -year period in 1983.
The statistics suggests that a decline, but the causes of the decline are ill-defined at the present time. Summary and Future Research Recommendation Companies are often not aware of the ramifications of not addressing to laborers? issues, instead they often choose to suffer the long term repercussion, as a result, in the market environment and employees? spirit. Companies, such as UPS, have learned that not trying to meet employees? needs can have negative effects on the results of their operations.
UPS depended to a significant degree on the inability to avoid strikes and other work stoppages by their employees. As their competitors had grown in size and strength, UPS faced permanent loss of customers if they were unable to provide continued service. Due to not being able to meet customer demands, their competitors became stronger and their market share declined during that period. Consequently, the Teamsters strike resulted in a decrease in the company? s financial and operational status. The strike 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 profit of $ 187 million for August 1996 (Prospectus, 1999).
These results suggest that solving employees? issues in a timely-manner can have a positive effect on employees and customers as opposed to decreasing the spirit of employees and dividing the market with competitors. As a manager of United Parcel Service, Inc and a past UPS striker in 1997, it is thought that the following points are in order to maintain effective management / employee relations. &# 61553; Publicize all events to employees, including financial reports, make job posting available, and publicize the benefits that the company offers to their employees, &# 61553; Cross train employees (especially if in union guidelines), &# 61553; Implement surveys and focus attention on union members? opinions, &# 61553; Work towards incorporating wage / benefit status to all workers and publicize how increases are tabulated (according to seniority date and / or other variables that may affect wages), &# 61553; DON? T let information become a mystery for employees and, provide the necessary resources to help solve problems, &# 61553; Let employees know the BIG PICTURE regarding why a company does things a particular way and be HONEST about problems, suggestions and issues.
The above outline may or may not help to contribute to a union free environment. But, they may also help to avoid future strikes if the company is already operating in a union setting. Unlike the PATCO situation, the UPS members did have an impact on the labor movement and opened the doors to future efforts? all of which centered on employees? needs and consideration of these needs early on. With respect to future research efforts, the following points seem to be in order?
which of the above ideas might have the biggest impact in satisfying employee needs, and when, in particular, should they be delivered in order to maximize their effects. The desired outcome, of course, should be a harmonious employee / management relationship, where trust and dialogue can be used to avoid such things as strikes and animosity. Bureau of Labor Statistics. (1999). Union Members in 1998. Washington, DC: Author. 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. , &# 038; Traynor, T. L. (Winter 1997). The impact of post-patch labor relations on U. S.
union wages. Eastern Economic Journal, 23 (1), 61 - 73. Grimes, P. W. , (June 1995).
The decline of strike activity and the post-PATCO era. Atlantic Economic Journal, 23 (2), 155. Hatfield, D. E. , &# 038; 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 wages keep falling. New Republic, 210 (7) 26 - 29. LaborNet Steering Committee (1999).
LaborNet [On-Line]. Available: web Meyer, D. (Summer 1994). The effect of environmental economic factors on the choice of union. Journal of Applied Business Research, 10 (3), 113 - 125. Partridge, D. M. , &# 038; Townsend, A.
M. (Fall 1999). Revisiting Multi-Tier Wages 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 Deliver. United Parcel Service, Inc. (1999, October). Prospectus.
Atlanta, GA: Author. Wilson, R. , &# 038; Witt M. (Spring 1999). The Teamsters? UPS Strike of 1997: Building a New Labor Movement. Labor Studies Journal, 24 (1) 58 - 7 Appendix 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 &# 038; Helpers, International Brotherhood of (IBT Author Note The recent paper utilized the contents and the data drawn together to form conclusions about the post-actions of the UPS events. I am associated with UPS and the conclusions and steps that are suggested do not necessarily reflect the companies?
opinion. I thank Geraldine Miller for her insights on labor unions and the political events, which assisted me in organizing my paper. I also thank Gerald Vaughn and Sonya McElveen for gathering the materials on the Teamsters. Correspondence concerning this article should be addressed to Tonya D. Moore, Department of Business Administration, University of Sarasota, 5250 17 th Street, Sarasota, Florida 34235. Electronic mail may be sent via Embanet to Tonya Moore.
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