The company approached contract negotiations in 1996 brimming with confidence. It had grown accustomed to dealing with cooperative union officials, and even though the recently reelected Teamster President, Ron Carey, was a known labor militant, UPS knew that it had allies on the local level among the “Old Guard.” Also, UPS was aware that the Teamster treasury was down, in part because Carey had already led several strikes and in part because the expenses involving the Consent Decree, allowing the U.S. government oversight over the union, was financed out of the Teamster treasury. UPS believed the Teamsters could very well encounter difficulties trying to pay strike benefits of $55 per week to striking UPS workers.
With these factors taken into consideration, UPS representatives entered contract negotiations prepared to play hardball. They demanded a 7-year contract and “general flexibility,” a euphemism for never-ending concessions regarding work rules. They wanted to convert more full-time positions into part-time work, reduce vacation days, holidays and personal days, and eliminate union jobs by making highway drivers self-employed