Mass Paycheck Shortages
Hundreds of Teamster-represented UPS employees in the Metro-Philadelphia District received short paychecks this past week. Members of management acknowledged that up to 900 hub employees at the Willow Grove facility have yet to receive pay for the Christmas holiday.
No other details or reasoning were given, and employees were told that corrections would be made in the following week’s pay — despite contract language requiring shortages of this size be paid within two business days following the company’s awareness of such shortages.
One cannot help but wonder how such a “mistake” could have been made, especially considering rumblings earlier in December of alleged management intent at UPS Freight to deprive employees of holiday pay due to a layoff day. That plan was reportedly averted, though with a similar layoff day imposed on workers at UPS, the possibility of company payroll misinterpreting the company’s obligations and voiding holiday pay does exist.
Though no express contract language provides for an automatic penalty for such a widespread shortage, an investigation into the company’s failure to meet payroll obligations may be in order.
UPDATE: Most Christmas payroll shortages were corrected a week after the shortage, though some employees (mostly Article 22 full-time workers) had to wait an additional week for their money. A small number of employees (those who filed grievances for late payment penalties) should be getting penalty payments the week ending January 31.
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Filed under: 2008 contract, UPS, rights
