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The appellants averred they asked certain Teamster members of the Teamsters if their rate of pay would change if they became full-time employees and were told that it would not. Both James and John were hired by UPS as full-time drivers.

However, when the appellants received their first full-time paychecks, they saw their hourly pay had been reduced by nearly half to $13.50 per hour, and their seniority eliminated. Inquiring with UPS to the discrepancy, they were allegedly told their previous wages would not be restored – which led the appellants to contact the National Labor Relations Board and file grievances with the Teamsters.

On June 4, 2014, the appellants and their spouses filed a state court complaint against UPS and the Teamsters, where they alleged breach of contract, violation of Pennsylvania Wage and Payment Collection Law, unjust enrichment, loss of consortium and violation of the Fair Labor Standards Act (FLSA – a claim they ultimately withdrew).

Still, one major headwind continues to be a cause for concern: Amazon. Because of increased costs and package volume, Amazon has been transforming from UPS’s biggest consumer to its biggest competitor. In December, the Wall Street Journal reported that rising costs and package volume have sparked Amazon to develop its own delivery routes, build its own freight operation, and prepare for drone deliveries.

Peretz denied claims of animosity between the two companies, but says he believes that UPS is the clear choice for consumers. “The Amazon relationship is mutually beneficial, and they are a valued customer to UPS,” he says. “The whole space of e-commerce is a great position for UPS because we want to become the shipper of choice. We’re adding things to the market that didn’t exist before.”

UPS CEO David Abney discusses the company’s 2015 holiday shipping strategy. He speaks on “Bloomberg Markets.” (Source: Bloomberg)