If your packages are frequently delivered by postal service workers, this may change in the near future. UPS (United Parcel Service) and the International Brotherhood of Teamsters have recently reached a preliminary agreement to adjust size limits for SurePost service packages. This agreement signals that more packages may be delivered by UPS union drivers rather than the United States Postal Service (USPS).
Agreement Focus: Reducing SurePost Package Size Limits
According to Teamsters spokesperson Kara Deniz, the core of this agreement involves reducing the size limits for packages eligible for SurePost service. SurePost is a UPS service primarily designed for non-urgent, lightweight residential packages that utilize USPS for final-mile delivery. While Deniz did not disclose specific size adjustments, she emphasized that if ultimately approved, this agreement would gradually redirect more SurePost packages to be delivered by union-represented drivers.
UPS declined to comment on the matter, noting that the agreement still requires approval in the upcoming national contract negotiations. Currently, UPS and the Teamsters are negotiating a new national contract, as the existing one is set to expire on July 31.
Current SurePost Rules Under Existing Contract
Under the current contract, packages eligible for USPS delivery typically weigh less than 10 pounds and have a volume smaller than 3 cubic feet. The contract also stipulates that if employees identify SurePost packages significantly exceeding these limits, such packages can be removed from the system and delivered by UPS drivers instead—unless the designated address cannot be serviced.
Union Stance: Advocating for More Delivery Rights
In a recent negotiation update, the Teamsters stated that their representatives have resisted UPS attempts to maintain the status quo or weaken protections for SurePost workers. The union reported that after multiple rounds of proposal exchanges, they successfully pushed UPS to transfer more packages back to union drivers' vehicles and secured commitments for regular testing of technology used to redistribute package volumes.
SurePost Service: Balancing Cost Control and Efficiency
For years, UPS's national contract with the Teamsters has imposed limits on the volume of SurePost packages delivered by USPS. As early as 2015, the union noted that during July and August of that year, 28% of SurePost volume (equivalent to 385,000 daily packages) was redirected back to UPS for delivery.
According to UPS's annual financial reports, SurePost volume in 2022 remained essentially flat compared to the previous year. However, during Q1 2023, volume increased as large shippers moved packages from UPS's air network to ground services for cost savings.
Negotiation Progress: Moving Toward National Contract
This preliminary agreement on SurePost marks another step forward in UPS and Teamsters' progress toward a national contract. UPS indicated that negotiators would focus this week on two remaining supplemental agreements covering workers in Kentucky and Northern California. National contract discussions are scheduled to resume on June 5.
Potential Impacts: UPS, Teamsters, and Consumers
While full details of the preliminary agreement remain undisclosed, its potential impacts warrant analysis across multiple dimensions:
- UPS Operational Costs: Shifting more SurePost packages to union drivers will likely increase labor costs but may allow network optimization.
- Union Members: More delivery opportunities for Teamsters drivers could mean increased earnings and strengthened bargaining power.
- Consumers: Delivery speed and quality may improve, though potential cost increases could eventually affect service pricing.
- USPS: Reduced reliance on postal service for final-mile delivery might impact USPS revenue streams.
Future Outlook: Automation and Labor Relations
Beyond immediate effects, this agreement raises broader questions about automation's role in logistics and the future of labor-management relations. As technology advances, automation is transforming warehouse operations, package sorting, and last-mile delivery. Both UPS and the Teamsters will need to address:
- UPS efficiency gains versus potential workforce reductions
- Union strategies to protect jobs while adapting to technological changes
- Collaborative approaches to retraining and workforce transition
The outcome of these negotiations—and how both parties navigate automation challenges—will significantly influence the logistics industry's evolution in coming years.