UPS open door for union at truck unit seen smart
Mon Jul 3, 2006 1:48pm ET163
By Nick Carey
CHICAGO (Reuters) - Package delivery company United Parcel Service Inc.'s (UPS.N: Quote, Profile, Research) recent decision not to block union attempts to organize its nonunion trucking unit is a gamble analysts said may improve its position in labor contract talks due to start soon.
Analysts said the decision could lead to unionization of less-than truckload (LTL) unit UPS Freight with its 17,000 employees, but added that might not be a bad thing.
Although unionized trucking LTL companies are seen as less flexible and less profitable than their nonunion counterparts, analysts note that UPS faces talks with 230,000 unionized employees represented by the International Brotherhood of Teamsters and may need to show the union it is willing to compromise.
INDY,MEMPHIS,Chicago Hard to tell?