UPS 1997 Strike: Negotiation Strategies and BATNA Analysis
This paper examines the 1997 United Parcel Service (UPS) strike led by the Teamster Union as a case study in labor negotiation. It explores the core issues and underlying interests of both parties, particularly the inequities facing part-time UPS employees. The paper analyzes the ethical tactics used by the union, identifies the Best and Worst Alternatives to a Negotiated Agreement (BATNA and WATNA) for each side, and proposes both distributive and integrative negotiation strategies applicable to the dispute. The analysis demonstrates how strategic preparation, public support, and solidarity shaped the outcome of one of the most significant labor actions in modern American history.
- Overview of the 1997 UPS Strike: Background on UPS and the 1997 strike
- Issues Versus Interests of the Parties: Part-time worker inequities and union response
- Ethical Behavior and Negotiation Tactics: Union campaign strategy and public support efforts
- BATNA and WATNA for Each Side: Best and worst alternatives for UPS and workers
- Distributive Negotiation Strategy: Win-lose outcome proposal for the dispute
- Integrative Negotiation Strategy: Win-win resolution proposal for both parties
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What makes this paper effective
- It grounds abstract negotiation concepts — BATNA, WATNA, distributive and integrative bargaining — in a well-documented real-world labor dispute, making the analysis concrete and accessible.
- The paper maintains a balanced perspective, presenting the interests and risks faced by both UPS management and the Teamster Union without obvious bias.
- Each section builds logically on the previous one, moving from context to tactics, then to alternatives, and finally to proposed strategies — demonstrating a coherent analytical framework.
Key academic technique demonstrated
The paper effectively applies negotiation theory to a historical case study. By distinguishing between issues (the stated positions, such as part-time pay rates) and interests (the underlying concerns, such as financial security and cost control), the author demonstrates a foundational skill in principled negotiation analysis. This distinction is then used to evaluate which strategy — distributive or integrative — would better serve each party's long-term interests.
Structure breakdown
The paper follows a structured question-and-answer format across six sections: (1) an overview of the negotiation context, (2) analysis of issues versus interests, (3) examination of ethical tactics, (4) identification of BATNA and WATNA for each party, (5) a distributive negotiation proposal, and (6) an integrative negotiation proposal. This scaffolded structure mirrors common applied negotiation frameworks used at the undergraduate business level.
Overview of the 1997 UPS Strike
The selected negotiation is the United Parcel Service (UPS) strike of 1997. UPS was established in 1907 and has since grown into the world's largest provider of package delivery and logistics services.
Issues Versus Interests of the Parties
At the time, one of UPS's key business strategies was to employ a large share of part-time personnel, which was particularly appealing to young workers. These employees were assigned work during off-peak periods and shifts, and they earned wages and benefits negotiated by the workers' union. Nonetheless, part-time employment at the company offered very limited prospects for advancement, regardless of how long an individual had worked as an interim contract employee.
By 1997, the UPS workforce consisted of approximately 182,000 part-time employees, who worked an average of 26 to 28 hours per week (Richter, 2011). This arrangement could persist for as long as five years at part-time compensation rates — a situation widely regarded as unfair to those workers. As a result, the Teamster Union, which was responsible for managing wage bargaining at UPS, undertook a comprehensive examination of the issue and decided to initiate a major strike against the company (Zerega, 1997). The union also relied heavily on support from the general public to strengthen its position (Worcester, 1997).
References
Moberg, D. (1997). The UPS strike: Lessons for labor; the teamsters' clear victory could spur more militancy at the bargaining table. Working USA, 1(3), 11.
Richter, L. (2011). Negotiation tips for project managers: Learning from historic cases. Bright Hub Project Management.
Spangler, B. (2003). Distributive bargaining. Beyond Intractability.
Spangler, B. (2003). Integrative or interest-based bargaining. Beyond Intractability.
Worcester, M. (1997). Teamsters walk off jobs at UPS; strike threatens widespread disruption of service. Telegram & Gazette.
Zerega, B. (1997). UPS strike continues to drive traffic to web. Infoworld, 19(44), 113.
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