Thousands of part-time workers at the United Parcel Service (UPS) around the US were recently informed that their hourly wages would be cut, eliminating raises implemented in 2021 at some hubs as a means to attract and retain workers in the tighter labor market.
Alex Sanchez, a part-time UPS worker in Ontario, California, for one year, said part-time workers at his hub had their base rate increased in 2021 from $15.33 an hour to $18 an hour.
“We were told that the raise was permanent,” said Sanchez.
At the end of January, Sanchez said he was informed that his hourly wage and those of every other part-time employee at UPS would revert back to $15.33 an hour. He claimed the wage cut resulted in many workers quitting.
“Part-time workers are the backbone of the UPS operation. With inflation, $15.33 an hour is tough for workers and their families,” said Sanchez. “I work two jobs in order to make ends meet. I’m a married father of three. The $3 cut really takes a toll on our family’s budget.”
UPS reported record profits in 2021 as it increased shipping prices; its profits grew nearly tenfold in 2021 to $12.89bn from $1.34bn in 2020. Its stock price hit a record high in February 2022. UPS is projecting more growth in 2022, with the expectation to hit 2023 financial goals a year early. The company approved a $5bn stock buyback program in August 2021.
Teamsters local unions at UPS have been holding protests against the pay cuts for part-timers, which have been up to $6 an hour in cuts for some workers.
Peter Nuñez, the UPS NorCal committee chairman and president of Teamsters Local 431 in Fresno, California, explained UPS used market rate adjustment wage increases outside contractually negotiated wages to help attract and retain workers
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