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The Teamsters have voted against the UPS contract agreement for the Small Package division, but the union says the contract is ratified anyway.

That appeared to be news to UPS.

While that fate of that larger contract may be somewhat in question, one thing that is clear is that the tentative contract agreement covering the UPS Freight division, much smaller than the Small Package sector, was defeated by the Teamsters.

According to a statement issued by the Teamsters, the contract–agreed to in July to replace the five-year agreement that expired July 31–was rejected 50,248-42,356. That seems like a clear defeat.

Disruptive technologies such as artificial intelligence (AI), blockchain and drones have been helping United Parcel Service, Inc. (UPS) in how it operates in the logistics industry, which itself is prone to disruptions.

UPS has relied on technology to stay ahead, the logistics company said on Tuesday during the inaugural Innovation Series, a platform organized by the US-ASEAN Business Council, the Makati Business Club and Manila House.

Chris Buono, managing director of UPS Philippines, said as a high-asset, fragmented and competitive industry, logistics has a great potential for disruption.

• With low turnout, 54% ‘no’ vote wasn’t enough, Teamsters say
• Contract approval raises turmoil risk for Hoffa and courier

United Parcel Service Inc.’s union ratified a five-year labor agreement for employees — even though a majority of members who voted turned it down.

The 54 percent “no” vote wasn’t enough to block the deal under union rules since less than half the membership turned out to cast ballots, the International Brotherhood of Teamsters said in an emailed statement. With such low participation, two thirds of workers would have had to oppose the deal for the rejection to be valid, the union said.

“Thus, the National Master Agreement has been ratified,” the Teamsters said.

Union says 54.3% of votes cast opposed the five-year deal

Teamsters members voted down a new contract with United Parcel Service Inc., sending both sides back to the negotiating table ahead of the holiday season.

Preliminary voting results showed that 54.3% of votes cast opposed the five-year deal, the International Brotherhood of Teamsters disclosed Friday evening.

Union leaders said they would reopen talks with the company. “We will be going back to the company to talk to them about some additional changes,” said Denis Taylor, co-chair of the Teamsters negotiating committee.