This paper presents a brief study on UPS, a unionized company. Its history as well as some legal issues and hurdles they have encountered, how the laws at different levels could be compromised because of those issues. As a part of the analysis, the paper also touches on the unionization process, how unions conduct bargaining, and the impact of union bargaining on the company as a whole.
From a humble start as a company selling its service in delivering message in 1907, UPS has become a multibillion dollar corporation (UPS, 2011). It is considered the largest company specializing in package delivery and a leader in specialized transportation and logistics services provider in the world (UPS, 2001). Recognized by the National Labor Relations Act (NLRA), commonly known as the Wagner act (Thomas, 2001), UPS commands a sizeable workforce consisting of over 180,000 union members and about 80,000 non-union members. The majority of members belongs to the International Brotherhood of Teamsters (IBT) that is a part of the (AFO-CIO) (Proyect, 2012).
As successful as it is, UPS does have its share of legal issues. The challenge of its proposals to change employees benefit packages and its support of “The employee Free Choice Act” AKA the Card Check bill, to name a few.
Regarding the employees benefits, UPS management proposed a different pension plan, that would transfer almost 45,000 full-time employees from the State administered plan into the proposed plan (Teamsters for a Democratic Union, 2007). This strategy involved the company putting up over 6 billion dollars to secure its way into paying lower contribution, thus holding down pension growth, reducing its long-term obligation and ultimately weakening the union position (Teamsters for a Democratic Union, 2007). This might be interpreted as an attempt by management to interfere with the Union organization.
The Employee Free Choice Act is another controversial...