Vote
“NO” and Strike for $25 – Plus AC – NOW!
Next Up: Organize Amazon!
Teamster-UPS Deal:
No End to Poverty Pay
UPS Teamsters demonstrate their power, July 6, at Foster
Ave., Brooklyn, New York City.
(Brittainy Newman / AP)
AUGUST 6 – On July 25, a week before
a strike deadline for which the union had been preparing
with a lot of fanfare for more than a year, the
International Brotherhood of Teamsters (IBT),
representing 340,000 United Parcel Service (UPS) drivers
and warehouse workers, suddenly announced that it had
reached a tentative agreement with the company, averting
a strike. IBT general president Sean O’Brien proclaimed
the deal “the most historic tentative agreement for
workers in the history of UPS.” He added, “We’ve changed
the game.” But the members still get to vote on it.
Last fall, O’Brien declared, “This UPS agreement is
going to be the defining moment in organized labor.”
Immediately after the tentative agreement (TA) was
announced, various Democratic Party politicians (Bernie
Sanders, Nancy Pelosi, Alexandria Ocasio-Cortez, of
course), labor liberals (Labor Notes) and
reformist leftists rushed to congratulate the Teamsters
for their negotiating “victory.” Interestingly, the big
business press also hailed the outcome. So after all the
hype, what did this defining, game-changing,
most-historic-ever TA actually win?
Under the agreement, all current Teamsters would get
raises of at least $7.50 per hour, by 2028. For drivers
earning top rate, currently $42 an hour, that would just
be an 18% increase. Spread over five years, at the rate
prices have been rising lately, that would almost all be
eaten up by inflation. Some 7,500 new full-time
positions will be opened up, but even for full-time
drivers, starting pay will be a miserly $23/hour,
achieving full pay only after a four-year “progression.”
And many part-time workers who believed O’Brien when he
said the union would fight for $25 an hour minimum were
disappointed to learn that starting pay for part-time
new hires would only be $21, later increasing to $23.
Wrestling boxes, large
and small, is a backbreaking job. UPS warehouse worker
loading a truck in 2019. At the time she was earning the
contractual rate of $13 per hour! UPS makes millions off
of low-paid part-time labor. Teamsters must demand equal
pay for equal work.
(YouTube)
The fact that for many low-wage part-timers, $21-$23
represents a significant raise from the current starting
pay of $16.20 an hour is an outrage in itself. UPS is
squeezing fabulous profits from such sweatshop wages,
yet this is the fault of the Teamster leadership
which for over four decades has agreed to such
miserable pay. (Actually, starting pay in the
current contract is $15.50, up from the ridiculous $13
in 2018! The increase to $16.20 was due to a mandate for
companies that contract with the federal government.)
But $21/hr. is still poverty pay. You can’t live
on that. And with a guaranteed minimum shift
of only 3½ hours, part-time workers can only, barely,
make ends meet with a second and even a third job.
Union officials are pushing the line that part-time pay
will eventually rise to $25.75 (by 2028, and not for new
hires). But already in a number of areas, UPS uses
“market rate adjustments” to raise part-time pay
($24-25/hr. in the Boston area, $20.50 in areas of
southern California) because they can’t get enough
workers at their miserable contractual rate. In New
York, with huge numbers of working people desperate to
pay the rent and food, the pay is still rock bottom.
This is doubly and triply important because at $21 an
hour, UPS wages will only be slightly above Amazon’s,
which is now paying $19, undercutting the IBT’s talk of
unionizing the e-retail giant, and therefore the drive
to organize the whole of the package delivery industry.
Another “hot” issue at UPS has been air conditioning,
particularly after the heat wave last year. Now we are
in what could be the hottest year on record. In June,
the union and company announced a preliminary agreement.
“Air conditioning is coming to UPS,” said O’Brien. So
what was in the TA on this? It turns out package cars
will get two fans in the cab, while “newer non-electric”
delivery vehicles would be gradually retrofitted with
induction vents, and starting next January, newly
purchased package cars will have in-cab air
conditioning. That is supposed to be heat safety?! At
UPS, famous for keeping its vans on the road for up to
30 years, it could be 2053 before all its delivery
vehicles have AC. As for the warehouses, nothing. Keep
on sweating.
Internationalist supporters in the Teamster-UPS
division have called for at least $30 an hour
starting wage, to break the cycle of poverty
pay and give a push to the Teamsters’ campaign –
launched two years ago but so far going nowhere – to
unionize the more than 800,000 production workers at
Amazon. As rumors circulated that IBT negotiators were
backtracking on the $25/hr. demand, at Teamster contract
rallies and “practice pickets” in June and July,
Internationalist signs declared: “Teamsters
One-Two Punch: 1) $25+/hr. Minimum for UPS Part-Time
Workers, 2) Organize Amazon!”
Now, in the face of an utterly inadequate Tentative
Agreement, we urge UPS Teamsters to: Vote “NO”
and Strike for $25 – Plus AC – NOW! To
actually wage and win a strike, particularly after the
union leadership agreed to a deal that would preserve
poverty pay for part-timers, who are the absolute
majority of UPS workers, Teamster militants should
demand that there be an elected strike committee,
with hundreds of delegates who can be recalled at any
time, representing every local with UPS workers, to
organize and decide on the course of the strike.
Despite the push for a “yes” vote coming from Teamster
headquarters in Washington about the “historic”
contract, it can be voted down. The 2018 UPS contract
was defeated, but then imposed by Teamsters president
James Hoffa Jr., using a provision of the IBT
constitution going back to 1940 requiring a two-thirds
majority to defeat a contract agreed to by the
leadership.1 That clause was
overturned at the 2021 Teamster convention. The previous
(2013) contract barely passed, with only a 53% majority
voting for it. In both cases, less than half the
membership voted, and a much smaller percentage of
part-time workers. Turnout is key. Voting on the
contract is from August 3 to August 22.
If the TA is voted down, the logical next step would be
an all-out strike. That would be a battle royal between
labor and capital, the likes of which the U.S. hasn’t
seen for years. To carry out and win the kind of
struggle that workers at UPS – and elsewhere – need,
that battle has to be waged politically. Labor's power
must be unchained from the bosses’ parties. Joe Biden
has declared himself to be the most pro-labor president
ever, but it was the Democrats – Biden, Pelosi, Sanders
and AOC’s “Squad” – who (with lots of Republican
support) carried out blatant strikebreaking against the
railway workers last December. As union leaders provide
cover for Biden & Co., this highlights why workers
need to break completely with all capitalist
parties.
It also underlines the need to build a
class-struggle leadership of the unions, and
to forge a workers party to lead a
struggle of all the oppressed to replace the
brutal rule of capital – UPS, Amazon, the
banks, real estate and the rest – with the
liberating rule of a workers government. For
them, we’re just a source of profit: they figure they
can work us to death in the stifling heat while tossing
us a few crumbs to keep us quiet. Their system runs on
exploitation, racism and war, but the working class has
the power not just to win a strike but to put the wealth
we have created in the service of human needs. Only a
leadership committed to such a workers revolution
will be up to the job of decisively defeating UPS and
the others who live off our labor.
Bosses’ Press Praises
Teamster-UPS Agreement
IBT general president Sean O'Brien joins UPS Teamsters
and supporters on “practice picket” line at Foster Ave.,
Brooklyn, July 14. Teamster tops vowed to fight for $25
part-time wage, delivered poverty pay.
(Teamsters / Twitter)
Over the last few years, working people in the United
States and internationally have gone through rough
times. The COVID-19 pandemic officially killed well over
a million people in the U.S. and 7 million worldwide (in
reality, much more), while millions lost their jobs and
many their homes. This was followed by galloping
inflation – driven by rampant profiteering by giant
corporations and intensified by U.S. sanctions against
Russia – reaching the highest level in 40 years in
mid-2022. And as the cost of living shot up, workers’
real wages (after subtracting for increased prices)
plunged by over 8% last year, the most severe drop in a
quarter century. So as 2023 began, many were fed up and
ready to fight.
By spring, as Hollywood screen writers walked out on
May 2, followed by actors in early July, there was wide
anticipation of a “Strike Summer,” which could extend
into “Strike Fall.” In particular, after contracts of
powerful rail and dock unions, whose members labored in
dangerous conditions through the pandemic, expired last
year, the August 1 deadline for the Teamsters’ UPS
contract looked like it might be the big one. After all,
IBT president O’Brien had been talking strike since
before he took office in 2021. Some pro-labor media said
a UPS walkout “could be the biggest strike in U.S.
history” (More Perfect Union, 31 May).
Expectations were sky-high.
On July 5 – after O’Brien had set a deadline to reach a
settlement by that date – bargaining broke down. The
union said on Facebook that the company “shamelessly”
presented an “unofficial offer” that would force
“part-time workers at UPS to be left behind.” Stressing
that part-time employees earn “near-minimum wage” in
much of the country, the IBT leader declared, “part-time
poverty isn’t working for America.” Already in mid-June,
the UPS members had voted by 97% to authorize a strike,
and over the next two weeks, UPS locals around the
country held “practice pickets.” So, many were surprised
when three weeks later, company and union negotiators,
after a brief meeting, issued statements that a deal had
been reached.
Significantly, the bosses’ press praised the UPS
settlement. The Wall Street Journal (25 July),
the voice of high finance, opined in an editorial (“UPS
and the Art of the Teamster Deal”) that “the UPS wage
hikes are catching up with recent inflation more than
they are driving more price increases,” that “the
public” (meaning the money men) “wins when a strike is
averted,” and that the deal will allow UPS “greater
flexibility” in scheduling weekend shifts. The industry
publication Freight Waves (25 July) was more
specific, quoting an analyst who said the agreement
could open the door for the UPS and IBT to “negotiate 7
day a week service mid-contract without opening up the
entire contract to do so,” including working on Sundays.
A perceptive labor reporter, Norm Scheiber, writing in
the New York Times (26 July), that house organ
of the capitalist/imperialist establishment, quoted UPS
chief executive Carole Tomé saying on an earnings call
with investors last spring that they should not be
distracted by the “great deal of noise during the
negotiation” on the way to a “win-win-win contract” by
the end of July. A few days prior (22 July), Schreiber
noted, which many on the left were blind to, that “for
all his pugilistic statements, Mr. O’Brien remains an
establishment figure who appears to prefer reaching a
deal to going on strike, and he has subtly acted to make
one less likely.” Which is exactly what happened.
First Rail, Now UPS: Teamster
Leader O’Brien Averts a Strike, Again
Solidarity with railroad workers demo against government
strikebreaking, at New York City's Grand Central
Station, 8 December 2022.
Democrats: strikebreakers,
war-makers – build a workers party! (Internationalist photo)
In 2021, the election of the Teamsters United slate,
led by Sean O’Brien and Fred Zuckerman and backed by
Teamsters for Democratic Union (TDU), replaced the
regime of James Hoffa, Jr., which had led the Teamsters
for 24 years. O’Brien was a long-time Hoffa lieutenant
at the head of IBT Local 25 in the Boston area.
Zuckerman is the former president of Local 89 in
Louisville who was narrowly defeated by Hoffa Jr. in the
2016 IBT election. And the TDU is a reputedly left
caucus in the IBT going back to the 1970s, when it was
started by sellout social democrats who made their mark
by appealing to the federal government and suing the
union in the courts. This violates the basic labor
principle of independence from the bosses’ state.
Hoffa Jr. replaced the TDU-backed regime of Ron Carey,
which led a national strike at UPS in 1997. That
two-week strike, very popular throughout the country,
won modest gains in pay and pledges to convert some
10,000 part-time workers, then two-thirds of the
workforce, into full-timers. But that conversion created
a tier of “22.3” workers who are paid $6.00 less than
other full-time employees. That tier has continued
through all the UPS contracts since then, including the
new TA. (This is distinct from the 22.4 tier created
under the 2018 contract who get paid even less, which
O’Brien/Zuckerman vowed in their election campaign to
get rid of, allowing them to pose as “militants.”)
Carey had come to office through government-run
elections that resulted from a 1989 Justice Department
consent decree which the union-suers of the TDU pushed
for in the name of “union democracy.” Beholden to the
bosses’ government, in 1994 Carey caved in to federal
“mediation” under Democrat Bill Clinton in the Master
Freight Agreement with trucking companies, costing
40,000 Teamster jobs. Also in ’94, he called off a
strike at UPS after one day. When Carey was forced into
a serious strike at UPS in 1997, immediately afterwards
the chickens came home to roost as the feds brought
charges against him, ordering new elections in which he
could not run. Hoffa Jr., representing the old guard of
the bureaucracy, became general president in 1998.
The conclusion, as we have written elsewhere, is: “Bring
in the feds and they own you” (“Unionize
Amazon
with Class Struggle,” in The Internationalist
No. 65, October-December 2021). For our special
supplement on the 1997 UPS strike, see “Teamsters
Strike Against UPS: All Out to Win This Fight!” (4
August 1997) in The Internationalist No. 2,
September-October 1997. For more on how government
intervention, aided and abetted by the TDU, wrecked IBT
pension funds, see “How Feds Destroyed Teamster
Pensions,” on page 8.
When O’Brien and Zuckerman were elected in 2021, this
was hailed by Labor Notes (which came out of the
late-’70s upsurge of the TDU and similar caucuses in
steel and auto) and various reformist leftists.
Teamsters for a Democratic Union declared a “new era,”
and effectively became part of the O’Brien-Zuckerman
(“OZ-TDU”) administration. O’Brien, who was IBT eastern
region vice president under Hoffa, Jr., talked tough
against UPS – vowing at the October 2022 TDU convention
to “pulverize” Big Brown. But it was a different story
with the rail unions, where two Teamsters affiliates,
BLET (engineers and train workers) and BMWED
(maintenance of way workers) represent three-quarters of
all unionized railroad workers.
As railroad bargaining revved up in mid-2022, O’Brien
got his pal Marty Walsh – a former construction union
leader who became mayor of Boston and then President
Biden’s secretary of labor – to get a Presidential
Emergency Board (PEB) appointed under the 1926 Railway
Labor Act, which lets the federal government ban rail
strikes. On the PEB’s orders, the IBT and other rail
union tops agreed to a contract without the sick days
that the ranks had insisted on. And the OZ-TDU Teamsters
leadership went along when Biden and the Democratic
Congress – including AOC and the other DSA (Democratic
Socialists of America) Democrats – rammed through a bill
banning a strike and imposing contract on rail workers
that a majority voted against.2
“Throughout negotiations,” said an IBT release,
“O’Brien worked closely” with Biden and Walsh “to reach
an agreement that kept Teamsters working and America’s
rails running” – that is, to prevent a strike. On the
UPS contract, O’Brien said he wanted Biden to stay out.
This shows how unpopular the rail contract fiasco was
with the membership. A strike at UPS, which moves 6% of
all domestic production, would be a huge disruption to
the economy, and when O’Brien settled, he was thanked by
Biden for averting a strike, again.
Fight for a Program That Points
the Way to Workers Rule
Amazon delivery drivers affiliated with Teamsters Local
396 picketed outside ONT1 sort center, Mira Loma,
CA.
(Photo:
Teamsters Local 396)
Among the gains highlighted by the Teamster bureaucracy
as it tries to sell the UPS tentative agreement is the
elimination of the “22.4” tier. This was originally
billed as being for “flexible,” “hybrid” indoor-outdoor
workers, but in reality, it was just another tier of
lower-paid drivers. The fact that those workers will now
be regular package car drivers is a step forward, but
under UPS’ “progression” rules, they will only reach
full rate in four years, with puny raises in the first
three years. Moreover, a new de facto tier of future
part-time hires will only get a $2 raise over the course
of the contract, while existing part-timers get another
$2.75. These tiers are used to divide workers. We say: To
hell with “progression” – abolish the tiers – full
pay for all, now!
The terrible situation of part-time workers is key to
the condition of all UPS workers, and to the company’s
profits. Some 55% of the UPS workforce in the U.S. is
part-time. In New York, under the current contract most
part-time workers make a little over one-third
the rate of full-time drivers. Lower pay for part-time
workers was originally imposed in a contract in 1982,
during a deep economic recession with 11% unemployment
and the bosses on a rampage after busting the PATCO air
controllers union. Part-time starting pay was reduced by
25%, to $8 an hour – and it stayed close to that for
three decades! With inflation, $8 would today be
$25, so under the new TA, part-timers
would still make far less than the cut-rate pay of
40 years ago!
The reduced part-time wage led to a massive expansion
of part-time workers and huge profits for UPS in the
following decades. In 2018, a Teamster negotiator said
union leaders had gone along with “artificially low”
starting pay for part-timers for 36 years with the
justification that it allowed for higher pay for
full-timers and for senior workers – as if the top rate
for drivers were something to brag about. Even the 1997
strike, under the slogan “Part-Time America Won’t Work,”
left the huge pay gap. And today the creation of 7,500
full-time (22.3!) jobs is a drop in the bucket when
there are 180,000 UPS workers stuck in the part-time
trap. UPS workers should demand: Equal pay for
equal work – and full-time jobs for all who want
them.
Then there are the brutal split shifts. The
“22.3” full-time positions coming out of the 1997 were
created by combining part-time shifts, but many of these
shifts are not continuous. A large number resulted in
split shifts, separated by several hours, so that a
warehouse worker on a 4-9 a.m. preload shift might also
have a 6-10 p.m. twilight shift. Some sleep at work
between shifts and may go home only once a week. Now
there are rumors that even more 22.3 workers will be put
on split shifts. These conditions are intolerable, a
throwback to non-union days. The 8-hour day, 40-hour
workweek were supposedly won almost a century ago. UPS
workers should demand: end split shifts!
UPS raked in record profits of $26 billion in 2021-22.
Its adjusted operating profit last year was 66% above
its pre-pandemic level. Its profit rate (return on
invested capital) was 31%. Plus last year it handed out
$8.6 billion to shareowners (led by the Wall Street
behemoth BlackRock) in the form of dividends and share
buybacks. In short, United Parcel Service is rolling in
dough. The Teamsters are in an extraordinarily strong
position to strike, and would enjoy huge popular support
as workers earning as little as $16.20/hr. take on a
company whose CEO makes more in a day ($19,000,000 ÷ 365
= $52,000) than most UPS workers earn in a year. It
would not be hard to explain, and for millions to
understand, that UPS Teamsters are striking for
all of us!
Even in less favorable conditions, with a leadership
fighting on a program of militant class struggle the
Teamsters could sock it to UPS. But that can’t be done
with a “business union” leadership that the OZ-TDU
“team” represent no less than Hoffa Jr., all of whom
recognize the bosses’ “right” to exploit workers. Rather
than accepting the “logic” of capitalism, union
militants should raise a series of “transitional
demands” pointing to a struggle for workers rule. Take forced
overtime. The new TA says no one will be required
to work six days a week. This is just going back to the
past. UPS workers should not have to put in long hours
at all. They should demand a shorter workweek
with no loss in pay (“30 for 40”),
creating a lot of new jobs.
This demand for a sliding scale of working hours
should go hand in hand with a fight for a sliding
scale of wages, automatically raising wages
to make up for the rising cost of consumer goods. UPS
Teamsters have a “cost-of-living” adjustment (COLA),
which is rare enough these days, but it only provides
piddling compensation. The way it works today, it only
kicks in when the increase in the Consumer Price Index
is over 3% a year. So if the official annual inflation
is 4.9% (as it was in April), then the COLA would be all
of 28 cents. As they said ironically in the ’30s
Depression, “don’t spend it all in one place.” UPS
Teamsters should demand a full COLA,
based on union calculation of the actual inflation
rate.
UPS drivers share
thermometer readings of near 120° (and over) heat in
their trucks, with surface temperatures of 150°, August
2022. Demand UPS install air conditioning
now.
(Photo: TDU / Twitter)
Or take air conditioning. This has become an
urgent issue as killer heat waves roll across the U.S.
In June 2022, Esteban Chavez Jr. died of an apparent
heat stroke in his truck in Pasadena, California, and in
October 2021 23-year-old warehouse worker Jose Cruz died
of heat exhaustion on the job in Waco, Texas. Videos
have gone viral of UPS drivers collapsing as they
deliver packages, and of workers documenting 120° heat
(and 150° surface temperatures) in cargo areas of vans
and package cars. Last month, Phoenix, Arizona set a
record of 31 straight days of over 110°. But all that
the new TA promises is a couple of fans and to start
purchasing delivery vehicles with air conditioned cabs
next January.
That is no answer at all to the heat crisis. There is
no reason for such a delay except one: money, and not a
lot of that. Workers should demand that UPS put
roof-mounted units on its delivery vehicles,
starting now! At $750 to $3,000 (for
top-of-the-line models) apiece, to a company of UPS’
size, that is chicken-feed. (No doubt UPS bosses would
object to the fuel costs of keeping the engines running.
That’s their problem: if they want packages delivered,
they’ll eat it.) And demand that when
temperatures in UPS warehouses go over 90°,
production stops. To enforce this, there
should be union safety committees
empowered to shut down operations in unsafe conditions.
As Leon Trotsky, co-leader together with Lenin of the
Russian October Revolution of 1917, wrote in the Transitional
Program, the founding document of the Fourth
International, such measures, and others such as to open
the books for workers inspection and workers
control of industry, point to the need for a
planned economy based on production for
human needs rather than the tyranny of the market based
on production for profit. To accomplish that requires expropriation
of the capitalist class by a workers
government. To be sure, we have a ways to go
to get there, but a solid strike can be an excellent
school for socialism. And that poses point-blank the
crisis of working-class leadership.
Build a Class-Struggle Opposition
in the Teamsters
At the July 31 meeting in Washington of leaders of
Teamster UPS locals, the vote was 161 to 1 to endorse
the TA (only Local 89, Zuckerman’s home local, voted
against). There have been reports of considerable
discontent, particularly (but not only) among part-time
workers, many of whom believed that O’Brien was
hard-lining it for a minimum $25 an hour wage. One
group, Teamsters Mobilize, has called to “Vote NO” on
the deal, demanding (in addition to the $25 base
part-timer pay) that all market rate adjustments be
permanent, full-time wages for all 22.3 workers, getting
rid of surveillance cameras and some other correct
demands. The freeze of pension contributions other than
for the IBT-UPS and New England plans is another sore
point.
Since the 2016 upsurge in votes for the populist
Democrat presidential primary contender Bernie Sanders,
which led to a huge influx into the Democratic (Party)
Socialists of America, a significant number of young
DSAers found their way into UPS. Many have since become
active parts of the OZ-TDU regime. Moreover, although
the DSA professes to have a “rank-and-file strategy” in
the unions, it has been actively recruiting officials at
different levels of Teamster officialdom. As a result,
many of those who are today singing the praises of the
UPS deal are these professed “socialists” ensconced in
the union bureaucracy and the capitalist party of
warmongers and strikebreakers Biden, Sanders and AOC’s
“squad.”
When the TA was announced, the DSA quickly issued a
statement hailing the Teamsters’ “historic contract
campaign,” vowing “unflinching solidarity” with the
ranks “as they vote to accept or reject the TA.” Very
helpful. Other groupings in and around the DSA have
called to vote “no,” including Workers Strike Back, an
outfit spawned by Socialist Alternative (SAlt).3
The most that the Tempest Collective,4
another tendency in the DSA, could do (so far) was to
reprint an article by Joe Allen, a former UPS worker and
author of The Package King: A Rank and File History
of UPS (2020), lamenting that “it feels like a
moment has been missed for real historic victories.”5
Left Voice (LV, U.S. affiliate of the Trotskyist
Fraction current) calls to vote “no” while holding a
joint forum with Tempest. The professional tailists of
LV are so intent on chasing after one and another
current in this “left” wing of the capitalist Democrats
that they actually called on the DSA to lead a fight for
a “no” vote: “The DSA, which has been organizing
thousands of people to join practice picket lines and
support UPS workers, should put all their strength
behind supporting the workers who are fighting against
the TA and for a better contract” (Left Voice, 28
July)! But the DSA is hardly an opposition in the
Teamsters.
For its part, Cosmonaut, which leads the Marxist Unity
Group inside the DSA, has published several
well-informed articles calling to defend part-time
workers and make $25 an hour a bottom-line demand, while
exposing the betrayal of this centerpiece of the
contract campaign by O’Brien and the TDU.6
But a group which is part of an organization (the DSA)
that counts rail strikebreaker/Ukraine war budget
supporter AOC and the host of DSA Democrat elected
officials at local, state and federal levels as
“comrades” cannot give revolutionary leadership
to UPS workers. Why not? Because breaking with the
Democrats and all capitalist parties and
politicians is fundamental to any serious
struggle against capital.
From the
picket line to a workers party, the class line is
fundamental.
To order buttons, click on image.
(Internationalist photo)
All the groups in and around the DSA fail to (1) state
clearly that overturning the IBT-UPS tentative agreement
will require an all-out strike; (2) oppose TDU on
principle for appealing to the capitalist state
(Labor Department, courts, etc.) against the union; and
(3) insist on opposition to the Democrats, and all the
bosses’ parties. Whether they call to vote “no,”
equivocate or remain silent on the contract, it is
impossible to lead UPS Teamsters’ struggle forward to
victory without taking a clear and emphatic position on
these key questions. The duty of Marxist revolutionaries
is to tell the truth to the masses, and the truth is
that in order to prevail, the union must prepare its
forces politically to take on a frontal assault
by capital.
Outside the social-democratic constellation, the Party
for Socialism and Liberation (PSL) published a
full-throated endorsement of the UPS deal, declaring
“UPS Teamsters’ victory shows how workers can fight and
win!” (Liberation, 25 July). According to the
PSL, “For organized labor to have real power, the most
essential thing is to be prepared to strike” – not to
wage a victorious class battle but only to “be prepared”
to walk out. Like the DSA Democrats, these Stalinoid
reformists orient to the union bureaucracy. Then there
is the WSWS, which we have dubbed the World Scab
Website, because while posing as leftists it actually
sides with the bosses in opposing unions.7
They have no business being present at any labor
struggle.
The various “critical” currents active around the
Teamsters struggle at UPS basically have a program of
(more or less) militant trade unionism. Some talk of a
“rank-and-file strategy” while others espouse “social
justice unionism,” but it’s all within the capitalist
framework. The Trotskyists of the Internationalist Group
call instead for class-struggle unionism, on the
basis of a program calling to overthrow the system of
exploitation and oppression of the “wage slaves” of
capital. We say that there can be no “fair wage” or
“fair contract” under the dictatorship of capital – it
is necessary to break the chains that bind workers to
the bosses. That requires that workers champion the
cause of all the oppressed.
UPS had a mainly white workforce into the 1970s, but
especially with the massive expansion of part-time work,
it became a major employer of African American and
Latino workers. UPS management has a long, dirty record
of racist discrimination and harassment against black
employees, going back decades and continuing today. In
2019, 19 black workers at a UPS warehouse in Maumee,
Ohio, sued UPS over racist abuse, including nooses being
hung at the workstation of a black worker. The union
needs to mobilize to fight every instance of racist
discrimination and abuse. Connected to this, fighting
for the cause of part-timers is tied in with the
struggle against UPS racism. So is the struggle to
unionize Amazon.
Unionize Amazon with Class
Struggle!
At UPS Teamster
practice picket in NYC, July 14
(Internationalist photo)
Organizing Amazon was an issue in the national
Teamsters election in 2021. O’Brien and the TDU said
that their strategy was to show Amazon workers the
benefits of a union by fighting for “strong contracts”
when the DHL and UPS contracts expired in 2022 and 2023.
We said at the time: “Winning major gains from the
shipping bosses won’t come easy – it will take an
all-out nationwide strike” (“Unionize
Amazon
with Class Struggle,” The Internationalist No.
65, October-December 2021). Instead, Teamster tops
settled for utterly insufficient contracts and refused
to strike when the membership was ready. It still is,
but it needs leadership with the determination and
program to fight to win.
That was what was key in the Trotskyist-led Minneapolis
Teamster strikes of 1934. The flying pickets, mass,
militant picket lines and policy of not relying on the
capitalist state were able to defeat massive repression.
That won the strikes, laid the basis for the workers
defense guards that defeated fascist stormtroopers and
later led to the organizing of over-the-road drivers. It
went together with the struggle against the imperialist
war drive, which is why IBT leader Tobin and the feds
joined to jail the Minneapolis Teamster and Trotskyist
leaders as the U.S. prepared to enter World War II. This
struggle is detailed in the book Revolutionary
Teamsters (2013) by Bryan D. Palmer, which we
highly recommend for all labor militants today.
Trotskyist-led Minneapolis Teamsters disperse cops and
scabs in “Battle of Deputies Run,” 21 May 1934. They
weren’t practicing.
Picket lines mean don’t
cross! (Photo:
Minnesota Historical Society)
In 1940, as WWII was underway, Trotsky wrote that in
this epoch of decaying capitalism, trade unions “cannot
any longer remain politically neutral…. They can no
longer be reformist, because the objective conditions
leave no room for any serious and lasting reforms. The
trade unions of our time can either serve as secondary
instruments of imperialist capitalism for the
subordination and disciplining of workers and for
obstructing the revolution, or, on the contrary, the
trade unions can become the instruments of the
revolutionary movement of the proletariat.” Trotsky’s
words are just as true today, as the capitalist world
hurtles toward a third, devastating imperialist world
war.
In his unfinished essay, which was on his desk as he
was assassinated by a Stalinist agent, Trotsky added
that the suppression of workers democracy in the unions
was a function of “their drawing closely to and growing
together with the state power.” This common feature of
the trade unions was characteristic of both fascist and
“democratic” imperialist countries as well as in the
colonies and semi-colonies. Almost as if he were
denouncing in advance the latter-day union-suers of TDU,
who make a mockery of union democracy by appealing to
the capitalist state, the Bolshevik leader wrote:
“The primary slogan for this struggle is:
complete and unconditional independence of the trade
unions in relation to the capitalist state. This means a
struggle to turn the trade unions into the organs of the
broad exploited masses and not the organs of a labor
aristocracy.
“The second slogan is: trade union
democracy. This second slogan flows directly from
the first and presupposes for its realization the
complete freedom of the trade unions from the
imperialist or colonial state.”
–L.D. Trotsky, “Trade Unions in the Epoch of
Imperialist Decay” (August 1940)
Carrying forward this program, Class Struggle Workers –
Portland (CSWP) put forward and won resolutions in 2016
to break with the Democrats and all capitalist parties
to form a class-struggle workers party, and then,
following the victory of xenophobic, misogynist Donald
Trump, to mobilize union power to smash racist forces.
The next year (2017) this was carried out as hundreds of
Portland-area unionists and supporters came out to stop
a fascist provocation. Today, as in past years, the CSWP
has won the support of unions to defend immigrants and
the rights of transgender people against reactionary
attacks. Not narrow trade-unionism but intransigent
class struggle in defense of all the oppressed is what
it will take to defeat UPS.
June 28 picket in Palmdale, CA, where Amazon drivers
joined Teamsters. Unionizing Amazon will take a massive
labor revolt, championing the cause of black workers and
immigrant workers, including in the warehouse and
transportation hub of Southern California's Inland
Empire.
(Internationalist
photo)
It also key to unionizing Amazon. This will not be
achieved on a warehouse-by-warehouse basis, handing in
cards to the federal government so that the National
Labor Relations Board can hold a representation
election. This momentous struggle, which will transform
the industry and shake the country, will be done the way
the industrial unions were built in the 1930s: through a
massive labor revolt. To succeed, such a struggle must
champion the cause of black workers, notably in the
anti-union bastions of the South, and of immigrant
workers, including in the vast network of warehouse and
transportation hubs in the Inland Empire in southern
California.
The struggle to organize the unorganized – and win real
victories for the unions – means class war against
capitalism. That requires leadership prepared to take on
and defeat the bosses, their parties and their
government. Vote no on the TA at UPS! Strike for
25, and air conditioning now! Organize Amazon with
class struggle! ■
Courtesy
of Democrats, Republicans, Hoffa Jr. and TDU
Union-Suers
How Feds, Dems and Banks
Whacked Teamster Pensions
One week after Democrats in the White House and
Congress passed strikebreaking legislation imposing
no-sick-days contract on railroad workers
(three-quarters of them Teamsters) who had voted
against it, President Joe Biden announced $36-billion
rescue of Central States Pension Fund. Flanking him
are Teamster general president Sean O'Brien (to his
left) and AFL-CIO president Liz Shuler (right).
(Photo: Susan Walsh / AP)
Last December 8, President Joe Biden announced the
grant of $35.8 billion in federal funds to shore up
the financially troubled Central States Pension Fund
(CSPF), covering 350,000 Teamster workers and
retirees, mostly in the Midwest. The action came
barely a week after the Democratic White House and
Congress imposed a contract on railroad workers that
they had voted against, and which didn’t include the
sick pay they had fought for. The funds came from the
$1.9 trillion American Rescue Plan, the coronavirus
relief package Biden got passed in 2021. It was the
largest pension fund rescue in U.S. history.
Retirees depending on Central States pensions have
been demonstrating for federal aid for years. They
breathed a sigh of relief as they faced the cutoff of
60% in their benefits, which would have thrown tens of
thousands into poverty. The Republicans, of course,
denounced the rescue as a “politically inspired
payoff” (New York Times, 9 December 2022). The
timing was certainly meant to let labor officialdom
try to sell Democrats as “friends of labor” in the
face of worker discontent over the strikebreaking rail
legislation. In making the announcement, Biden was
flanked by Teamsters general president Sean O’Brien
and AFL-CIO chief Liz Schuyler.
It also meant that there was little chance that
O’Brien would cross Biden in a United Parcel Service
(UPS) strike this summer. To be clear: current UPS
employees are not covered by the CSPF. The company
pulled out in 2007, setting up the UPS/IBT Pension
Fund covering about 70,000 current employees; others
are covered by the Western Conference Teamsters
Pension Plan, the New England Teamster Pension Fund
and other smaller plans. In the July 25 IBT-UPS
tentative agreement, the New England and UPS/IBT plans
(which paid lower benefits) will get increased
funding, while other plans are essentially frozen,
saving UPS many millions.
So how did the Central States Pension Fund
come to be so underfunded? Republican spokesman Rep.
Kevin Brady blames “union leaders” and trustees who
promised too-high payments. (The average CSPF monthly
pension is less than $1,200.) The rightist Federalist
Society blames mismanagement by Teamster “union
bosses.” Wrong on both counts. The No. 1 reason for
the tanking of multiemployer Teamster funds was
deregulation of trucking under Democrat Jimmy Carter,
which led to the demise of many Teamster unions, so
today there are five CSPF retirees for every active
worker.
Factor No. 2 was the 1982 consent decree that the
Teamsters were forced into by Carter’s Labor and
Justice departments, with a big assist from Teamsters
for a Democratic Union (TDU). In April 1977,
International Brotherhood of Teamsters (IBT) president
Frank Fitzsimmons was forced by the Carter
administration to step down as trustee of the CSPF. Workers
Vanguard (No. 158, 20 May 1977), then the voice
of revolutionary Trotskyism, ran an article headlined
“Hands Off the Teamsters.” WV detailed shady
practices of the IBT tops, but stressed: “Breaking
union power, not ‘cleaning up the labor movement,’ was
the real aim of government intervention.”
TDU, in contrast, hailed the feds’ action, saying
that removal of Fitzsimmons was a “little step toward
pension reform. So far so good.” Spokesman Pete
Camarata said that TDU was “willing to accept
government intervention,” that “the union’s so corrupt
right now that you need it for a while.” But it’s more
than that. The TDU was an instigator of the government
attack on the Teamsters. At its national convention in
September 1977, it distributed a pamphlet stating:
“TDU is organizing a letter writing campaign
to President Carter and Labor Secretary Ray Marshall
asking them to use their powers under the Pension
Reform Act (ERISA) to remove the current Teamster
trustees on the grounds that they have acted in an
imprudent manner.”
In May 1978 TDU sued Teamster
pensions funds, and in June, when a Congressional
hearing was held on the Central States fund, Camarata
and another TDUer testified against the union.
This was par for the course for the TDU, which
repeatedly ran to the capitalist courts and Labor
Department calling to prosecute the IBT. In April
1987, as the Reagan administration was preparing to
sue the IBT under the draconian Racketeer Influenced
and Corrupt Organizations (RICO) Act, TDU organizer
Ken Paff wrote to Assistant U.S. Attorney General
Stephen Trott saying, “we strongly urge the government
to seek reorganization of the IBT under Section 164(a)
of the RICO Act.” The TDU asked for government ordered
union elections, and it got its wish. In 1989, U.S.
attorney Rudolph Giuliani settled the RICO suit with a
court order for the feds to run Teamster elections in
1991 and 1996, and granting federal officers vast
powers over the IBT.
The result was the government-supervised election of
TDU-backed Ron Carey … and six years later the
government ouster of Carey in the wake of, and as
reprisal for, the 1997 UPS strike (see “Teamster-UPS
Deal: No End to Poverty Wages” on page 1).
Now back to the 1982 consent decree and Central
States Pension Fund. Under its terms, a
government-named “fiduciary” was granted exclusive
power to manage the CSPF plan and invest its assets.
The Wall Street investment bank appointed as fiduciary
(originally Morgan Stanley) promptly sold off real
estate assets – mostly lucrative investments in Las
Vegas casinos, which were deemed “troubled” not
because they were not profitable, on the contrary, but
because they were loans allegedly made to front men
for the Mafia who were off-limits to regular banks.
Instead, the “professional” money managers invested in
“traditional” stocks and bonds.
From 1993, the plan administrators put a majority of
CSPF investments in “equity securities” whose value
rose and fell with the cycles of the stock market.
This intensified from 2000 on, as the fiduciaries (now
J.P. Morgan and Goldman Sachs) put two-thirds of the
plan’s assets in stocks, a far higher percentage than
the average (48%) for multiemployer union pension
funds. This continued as Morgan was replaced by
Chicago-based Northern Trust. Then came the 2008-09
stock market crash. That led to “Central States’
astonishing 42% drop in assets – and a loss of about
$11.1 billion in seed capital – in just 15 months
during 2008 and early 2009.”8
As MarketWatch noted, the government and
banks “stood watch while the financial markets
accomplished what the mob had failed to: which was to
smash the fund’s long-term solvency with massive
money-losing investments.” Central States never
recovered from this devastating loss, which is why a
federal rescue was needed to prevent the fund from
going under. But so-called “legitimate” investors who
stayed invested in Vegas real estate, having pushed
out the mob, made out like bandits, so to speak,
raking in billions. Even other Teamster pension funds
that escaped the feds’ death grip, like the Western
Conference fund, managed to stay solvent.
The overall problem of underfunded pension funds was
not limited to the CSPF, or the IBT. A 2018 report to
Congress by the U.S. Government Accountability Office
cited reports by a “prominent actuarial firm” that by
2014, 36% of multiemployer pension funds insured by
the Pension Benefit Guarantee Corporation (PBGC) were
classified as “endangered” or in “critical” status.9
Something had to be done. The response of the Obama
administration and Congress was the bipartisan
Multiemployer Pension Reform Act of 2014, whose main
purpose was to “save” pension funds by slashing
retirees’ benefits. Senate Democrats voted by
2-1 for the bill.
Union retirees have protested for years to defend
their pensions.
(Photo:
teamster.org)
IBT president James Hoffa Jr. originally joined with
employers and other union tops in developing a plan to
allow such cuts, pulling out at the last minute.
Teamsters for a Democratic Union played a leading role
in opposing the cuts, but was co-responsible for
the government takeover of CSPF that led to the
crisis. This union “reform” caucus was started
by the International Socialists (I.S.), heirs of the
anti-Trotskyist renegade Max Shachtman. In his book
praising the TDU, Rank and File Rebellion (1990),
fellow Shachtmanite Dan La Botz wrote:
“The TDU pension reform campaign was largely
successful…. [P]artly as a result of TDU’s pressure,
the Carter administration used the power of the
federal government to clean up the Central States
Pension Fund, removing the gangsters and stopping the
poor investment practices of the past.”
The social-democratic TDU appealed
to the capitalist government to “clean up” the IBT. As
a result, the feds whacked the funds and endangered
the livelihoods of Teamster workers.
This is not an apology for the IBT Old Guard, far
from it. Many of them – but not all – were in bed with
the mob. They are the heirs of Teamster chief Dan
Tobin who brought in the government to prosecute and
jail the Trotskyists who led the greatest Teamster
battle in history, the 1934 Minneapolis strikes that
laid the basis for Teamster power. The bedrock of that
power was independence from the bosses, their
politicians, their government and their state power.
Among the thugs Tobin sent to Minneapolis to battle
the militant Teamsters was a young Jimmy Hoffa, who
had been part of the Central States Drivers Council
led by Trotskyist Farrell Dobbs.
The story of the Central States Pension Fund comes
down to basics. The Democrats (and Republicans) are no
“friends of labor” but bosses’ parties. The government
is not neutral, it is the executive committee of the
bourgeoisie whose task is to suppress the exploited
and oppressed. Appealing to the cops, courts and
bourgeois politicians is crossing the class line,
betraying the workers by bringing in the class enemy.
Marxists and class-struggle labor militants oppose
government intervention in union affairs, including
laws claiming to defend union democracy, and we defend
the unions, however corrupt, against the capitalist
state. Bottom line: labor must clean its own
house.
It should be obvious that no private pension funds,
whose income derives from investments, are safe from
destruction by financial pressures under capitalism.
Even supposedly guaranteed Social Security funds can
be gutted, their wholly inadequate benefits slashed,
their coverage limited and their assets raided by
bourgeois politicians out to improve the
“competitiveness” (profitability) of capital. This is
being dramatically demonstrated by the sharp battles
over pensions in France, from 1995 to today.10
Only by mobilizing the power of the workers in all-out
class struggle can we defeat the forces who would
condemn millions to toil until they die.
Social gains of the past – the 8-hour day, 40-hour
workweek, pensions, public health and education – are
being ripped up before our eyes as decaying capitalism
only invests in frenzied speculative bubbles and
job-destroying technology. A secure retirement for the
millions can only be won by building a class-struggle
workers party fighting for international socialist
revolution. Then, instead of condemning those who can
no longer produce profits for the bosses to poverty
and dreary warehouses for the elderly, a society freed
from the deadly profit drive can come up with creative
means to ensure a comfortable and rewarding existence
for all. ■