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Purse pirates: UPS ripped off seasonal workers with unfair pay practices, lawsuit alleges

Financial Post
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Purse pirates: UPS ripped off seasonal workers with unfair pay practices, lawsuit alleges

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FILE - This April 25, 2011 file photo shows United Parcel Service driver Albert Palafox in Palo Alto, Calif. Photo by Paul Sakuma /APArticle contentNEW YORK (AP) — UPS stole tens of millions of dollars in pay from seasonal workers who help the shipping giant deliver packages during the busy holiday season, forcing some to clock in well after their shifts started and deducting pay for lunch breaks they never took, New York Attorney General Letitia James alleged in a lawsuit Monday.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentFiled in state court in Manhattan, the lawsuit accuses UPS of “repeatedly and persistently” failing to properly compensate driver helpers, who assist with deliveries, and seasonal support drivers, who use their own vehicles to make deliveries. James estimated that in the last six years, UPS has deprived tens of thousands of seasonal workers of wages totaling about $45 million.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe lawsuit seeks back pay and penalties, plus a court order requiring UPS to end off-the-clock work and change its timekeeping and payroll practices. The company, known for its brown trucks and uniforms, delivered an average of 22.4 million packages a day and brought in $91.1 billion in revenue last year, according to its website.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“We oftentimes don’t think of these workers when we’re opening up our gifts for the holidays,” James said at a news conference announcing the lawsuit. “And these individuals are struggling each and every day to make ends meet.”Article contentIn a statement, Georgia-based UPS said it was aware of the lawsuit, “takes all accusations of wrongdoing seriously and denies the unfounded allegation of intentionally underpaying UPS employees.”Article content“We offer industry-leading pay and benefits to our more than 26,000 employees in New York, and we remain committed to following all applicable laws,” the statement said.Article contentJames, a Democrat, said she started investigating UPS in 2023 after an employee union, Teamsters Local 804, raised concerns about the company’s treatment of seasonal workers. Those workers are employed on a temporary basis from October to January.Article contentJosh Pomeranz, the union’s director of operations, said that while there isn’t evidence that the company’s top management was involved in, aware of or condoning alleged wage theft, “these are just certain practices that you have to actively ignore, not to see it happening.”Article contentTrending Stellantis hires 1,000 workers in Windsor as Brampton dispute continues Autos Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance The Federal Reserve’s rate cut was a clear signal to investors Investor McKinsey plots thousands of layoffs in consulting slowdown Work Posthaste: Canada's provinces face 'deteriorating' outlook, says Fitch Ratings News Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Stellantis hires 1,000 workers in Windsor as Brampton dispute continues Autos Garry Marr: How raiding your TFSA before the end of year could save you thousands Personal Finance The Federal Reserve’s rate cut was a clear signal to investors Investor McKinsey plots thousands of layoffs in consulting slowdown Work Posthaste: Canada's provinces face 'deteriorating' outlook, says Fitch Ratings News

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Source: Financial Post