Cost of a union to the company?

How do the costs of a union run company compare to the costs the same size non union company?

Teamsters Response:

That's a hard question. In general a unionized Canadian worker makes about 30% more then a non-union worker in the same industry.

However, when you look at FedEx who is unionized in most of Europe but not in North America (except the pilots who are unionized), then you look at UPS who is unionized in most of Europe and in North America ,we can use the following data that I got from the internet. Purolator is unionized and operates in Canada with limited U.S. operations.

FedEx - approx. $36 Billion in revenue with approx. profits of $100 million.

UPS- approx.$52 Billion in revenue with approx. $3 billion in profits.

Purolator- approx. $1.3 Billion in revenue with approx. $50 million in profits.

So for some reason UPS seems to make a larger profit in general then FedEx ....and UPS seems to be doing that even while paying it's workers up to $5 more per hour then a FedEx worker in the USA?

I would suggest that a companies profit is based on how well it is managed and very little to do with whether a company is unionized or not.

The Real Story about union dues

  1. The Canada Labour Code says that $5 is required for the sign-up process.
  2. There are no initiation fees when you join Teamsters Canada.
  3. You start paying union dues only when you obtain your first collective agreement.