New Talks Try To End Deadlock Ups May Compromise To Settle Crippling Strike

The Teamsters and United Parcel Service resumed informal talks Thursday, and the company suggested room for compromise as the union’s strike reached Day 11.

“Their presence here today is a clear signal of their commitment to redouble their efforts to try to reach a settlement,” said Labor Secretary Alexis Herman, who persuaded the parties to return to the table.

The talks were billed as discussions, not negotiations, indicating significant differences remained, but it was hoped common ground might be found in the off-the-record talks with a mediator.

“During informal discussions, we’ll talk about anything that anyone wants to talk about, and we’ll have the opportunity to talk about anything we want to talk about,” UPS Chief Executive Officer James P. Kelly said in a telephone interview from Atlanta.

Teamsters spokesman Steve Trossman said it was premature to expect a settlement.

“But we’re certainly glad to see any sign that the company is going to get to the table and actually seriously negotiate,” he said.

If the informal talks yield progress, Kelly said, the company is willing to consider a deal that could be substantially different from what UPS has insisted was its “last, best and final” offer.

“If those informal discussions lead us to believe that the negotiations could be concluded at some point in time, then the last, best and final offer would cease to exist,” Kelly said.

Later, the company stressed that while it was exploring all options in the informal talks, there had been no change in its formal negotiating position. The company has insisted its last offer should be voted on by its workers.

The company has invested a lot of energy in promoting its proposal to boost workers’ pensions by withdrawing from the Teamsters multiemployer benefits plans.

Asked if leaving that component out of a final proposal would represent a loss for the company in the standoff, Kelly replied: “If we get an agreement reached that gets our people back to work and allows us to compete long-term, I consider that a gain for us and a gain for our people.”

The strike by 185,000 Teamsters has crippled the package delivery giant, which normally handles 12 million bundles and letters daily.

Pressure was increasing as the company lost $200 million to $300 million in business every week, and the union as of Thursday owed picketers an estimated $10 million in strike benefits.

Other unions have promised to help back the strikers.

But Herman’s stepping in also increased the profile of the talks.

“I think her force of personality and the office she holds was a factor in the parties coming back to talk. She represents the interest the administration has in these talks,” said David Helfert, spokesman for talks mediator John Calhoun Wells. Wells is director of the Federal Mediation and Conciliation Service.

The Clinton administration has urged both parties to settle their differences but insisted it would not be appropriate to end the strike through direct government intervention.

Meanwhile, the Independent Pilots Association warned UPS customers that even if the Teamsters strike is settled, service could soon be interrupted again. UPS’ 2,000 union pilots have been operating without a contract since December 1995.

A recess in mediated talks called in June is expected to end by September. Then, after a 30-day cooling off period, the pilots would be able to strike.