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 in many areas, but the increases were stripped from part-time employees without warning.
According to Nuñez, eight out of 15 locals in northern California were affected by market rate adjustments, affecting about 4,000 employees in the region.
“For them to eliminate that market rate adjustment, with no warning and no care for those employees who have been used to making that $21 an hour, it’s a pretty heavy hit to take if you’re a part-time employee now,” said Nuñez. “We don’t believe it’s just nor do we believe it’s fair and we’re looking to call the company out.”
Other Teamsters members and part-time workers at UPS also criticized the sudden pay cut for part-time employees.
Ross Richardson, a part-time UPS employee in Indianapolis, Indiana, said he has worked 50 to 60 hours a week despite being classified as part-time through the pandemic.
“We were never told it was a market rate adjustment raise and then out of nowhere they handed out a piece of paper on a Wednesday in early January and said effective the following Monday our pay would be reduced to the contracted rate of $15 an hour, after not receiving hazard pay and constantly short-staffed, having to do two and three people’s jobs,” said Richardson.
Evelyn Cotton, who works as a comprehensive health and safety process co-chair at UPS in Goodyear, Arizona, criticized the way part-time employees were informed of the pay cut and claimed many workers quit after being told of it.
“I was extremely ashamed over the handling of pay cuts for employees,” said Cotton. “These people were never told about this cut because most are not union or have no clue about it.”
Alexis Torres, a part-time UPS employee for three years in California and a mother of four, experienced a wage cut of nearly $5 an hour at her hub, which has caused morale at her job to drop.
“It’s difficult to work long hours with a smile on my face knowing I’ll barely make enough to pay my rent while UPS has had some of their highest grossing years recently,” said Torres. “My body takes a beating every day for what? To watch the CEO cut your pay by $5 an hour. I guess us employees only matter during peak – it feels like we don’t matter the rest of the year.”
Torres emphasized she enjoys working at UPS and had started saving up for a house with the wage increase, but that dream was pulled out from under her, as no one said the wage increase was temporary.
“Fast-food chains are starting their employees out a dollar more than I’m making now,” Torres said. “If they could cut pay by $5 an hour without my knowledge what else could they do? This is my life, UPS is my life and I feel betrayed.”
UPS did not comment on how many part-time employees were affected by recent pay cuts, the local protests over the cuts, or on the impression workers were given that the wage increases were permanent.
“UPS part-time Teamsters-represented employees receive $15 per hour plus benefits including paid time off, a pension and healthcare coverage, as established through the collective bargaining process,” said a UPS spokesperson in an email.
They added: “To reflect local market conditions, we sometimes provide temporary hourly rate increases or bonuses that are in addition to our contractually agreed upon compensation. These temporary hourly rate increases are based on the time of year, geographic location and type of job. For some part-time employees, we recently changed to a bonus that rewards dependability, which can result in even higher pay for that employee.”
