AmazonScience/document-haystack

152Human Capital3Our success is dependent upon our people, working together with a common purpose. As we seek to capture new 4opportunities and pursue growth, we believe that transforming the UPS employee experience is foundational to our success. 5This requires a thoughtful balance between the culture we have cultivated over the years and the new perspectives we need to 6take the business into the future. 7We believe that UPS employees are among the most motivated and highest performing in the industry and provide us a 8competitive advantage. To assist with employee recruitment and retention, we continue to review the competitiveness of our 9employee value proposition, including benefits and pay, training, talent development and promotion opportunities. For 10additional information on the importance of our human capital efforts, see "Risk Factors - Business and Operating Risks - 11Failure to attract or retain qualified employees could materially adversely affect us" and "- Strikes, work stoppages or 12slowdowns by our employees could materially adversely affect us".13We have approximately 500,000 employees (excluding temporary seasonal employees), of which 414,000 are in the U.S. 14and 86,000 are located internationally. Our global workforce includes approximately 85,000 management employees (42% of 15whom are part-time) and 415,000 hourly employees (48% of whom are part-time). More than 70% of our U.S. employees are 16represented by unions, primarily those employees handling or transporting packages. Many of these employees are employed 17under a national master agreement and various supplemental agreements with local unions affiliated with the International 18Brotherhood of Teamsters ("Teamsters"). In the third quarter of 2023, the Teamsters fully ratified a new national master 19agreement that expires July 31, 2028. In addition, approximately 3,300 of our pilots are represented by the Independent Pilots 20Association ("IPA"). Our agreement with the IPA becomes amendable September 1, 2025. 21Oversight and management22We seek to create an inclusive and equitable environment that brings together a broad spectrum of backgrounds, cultures 23and stakeholders. We believe leveraging diverse perspectives and creating inclusive environments improves our organizational 24effectiveness, cultivates innovation, and drives growth.25Our board, directly and through the Compensation and Human Capital Committee, is responsible for oversight of human 26capital matters. Effective oversight is accomplished through a variety of methods and processes including regular updates and 27discussions around human capital transformation efforts, technology initiatives impacting the workforce, health and safety 28matters, employee survey results related to culture and other matters, hiring and retention, employee demographics, labor 29relations and contract negotiations, compensation and benefits, succession planning and employee training initiatives.30In addition, the Compensation and Human Capital Committee charter has been expanded to include oversight 31responsibility for performance and talent management, diversity, equity and inclusion, work culture and employee development 32and retention. We believe the board’s oversight of these matters helps identify and mitigate exposure to labor and human capital 33management risks and is part of the broader framework that guides how we attract, retain and develop a workforce that aligns 34with our values and strategies.35Additional information on our human capital efforts is contained in our annual sustainability report, which describes our 36activities that support our commitment to acting responsibly and contributing to society. This report is available under the 37heading "Social Impact" at www.about.ups.com.38Collective bargaining39We bargain in good faith with the unions that represent our employees. We frequently engage union leaders at the national 40level and at local chapters throughout the United States. We participate in works councils and associations outside the U.S., 41which allows us to respond to emerging issues abroad. This work helps our operations to build and maintain productive 42relationships with our employees. For additional information regarding employees employed under collective bargaining 43agreements, see note 6 to the audited, consolidated financial statements.