[PEN-L:11801] UPS Strike: Labor's Crossroad

[Michael Eisenscher <meisenscher@xxxxxxxxxxx>]

Dow Jones Newswires -- August 15, 1997
 UPS Strike Puts Organized Labor At A
 Crossroads

 Dow Jones Newswires

 WASHINGTON (AP)--The standoff between United Parcel Service of
 America Inc. (X.UPS) and the Teamsters union is more than a disagreement,
 it's also a pivotal test for the labor movement.

 A victory in the strike would boost the efforts of union leaders to rebuild the
 ranks of organized labor and might embolden other unions to stake out
 tougher positions in future negotiations.

 But if the union is perceived as the loser when the standoff ends, any
 momentum would be gone. Teamsters President Ron Carey, already
 embroiled in an internal political struggle, would probably receive most of the
 blame.

 "It may be a good place for labor to draw the line in the sand because most
 people out there immediately understand the logic," said former Labor
 Secretary Robert Reich. "It strikes people as unfair to set up a two-tiered
 wage structure in which some people are getting half the pay for doing
 essentially the same jobs as other people."

 The new leaders of the AFL-CIO have accused companies of inadequately
 sharing their profits with the workers who help produce them.

 "America needs a raise," has been John Sweeney's mantra since he took the
 helm of the 13-million-member federation nearly two years ago. But Sweeney
 and other labor leaders haven't been talking about wages alone.

 In television commercials during last year's political campaigns and in
countless
 public appearances, they have emphasized the strains that the changing
 economy has placed on American families. They also have underscored
 concerns about pension benefits and the accessibility of health care.

 Labor has seen its clout wane as its membership rolls dwindled. After World
 War II, about 35% of workers belonged to unions. Today, that number is just
 over 14%.

 Part-time workers, as a percentage of the workforce, climbed slowly from
 1968, when they represented 14% of workers, to 18.3% last year.

 UPS is in some ways a strange target for a high-stakes labor fight. The
 employee-owned company has been unionized since 1916 and prides itself on
 the fact that many of its top managers began their careers as sorters and
 drivers.

 The company is considered the best-paying employer in its industry, paying
 full-time drivers about $20 an hour. It also offers some benefits to part-time
 workers.

 But part-time workers comprise nearly 60% of UPS' workforce, and their
 base wage of $8 an hour hasn't increased since 1982. UPS' reliance on
 part-time help has been increasing.

 In the past four years UPS created 46,000 jobs - 38,000 of them part-time.
 About 10,000 UPS part-timers work 35 hours or more weekly.