A strike could break out in August , according to reports, as contract talks between UPS and the Teamsters, an association of truckers representing the company, collapsed. The threat of a serious strike is growing.
Negotiations between UPS and Teamsters aimed to reach an agreement on labor contracts, but it is understood that the two sides could not agree on treatment, wages, working conditions and some other key issues. Although the two sides have been working hard to find a compromise, the negotiations appear to have reached an impasse.
In the latest news, talks between the Truckers Association and the company have broken down, and UPS is one step closer to a driver strike.
The association said earlier in the day that UPS had made a proposal that was unanimously rejected and that the company had “retired from the negotiating table”.
“UPS had to make a choice, and they clearly chose the wrong path,” said Sean O’Brien, general manager of Teamsters, which represents about 340,000 full- and part-time U.S. drivers, package movers and stevedores.
If the negotiations fail and a new labor contract is not reached, there is a possibility of a strike in August. This will seriously affect UPS’s business and logistics transportation, because UPS is one of the largest express and logistics companies in the United States, handling millions of packages and goods every day.
Although there is still time for final negotiations, the two sides appear to be far apart, making a strike more likely. A strike would cause significant disruption to UPS’s operations and customer supply chains, as well as broad economic impacts.
The two sides still have a chance to restart talks and reach an agreement before August to avoid a strike. However, if the differences cannot be resolved, then UPS and Teamsters will need to grapple with the potential impact of the strike on their business and reputation and find other solutions where possible to mitigate these impacts.
The Teamsters union said on Wednesday that United Parcel Service (UPS) had “dropped out” of talks on a new contract, while the shipping giant denied the claims and accused the union of stalling talks.
The two sides blamed each other in early morning statements as they tried to strike a deal to avoid strikes when contracts currently covering some 340,000 workers expire at the end of the month.
UPS workers have been given the authority to strike if talks break down. Such strike action would be the first by UPS workers since 1997, when a 15-day strike cost the company $850 million and caused some customers to switch to rivals.
Both unions and company officials have said they want a final deal to avoid a strike that would put tens of millions of daily deliveries at risk.
In the event of a strike, UPS could struggle to regain lost business as it and rival FedEx face weak e-commerce demand, said Satish Jindel, president of logistics consultancy ShipMatrix.
“UPS currently handles about 20 million packages a day and FedEx handles 12 million. So they have room for 3 to 4 million packages, without breaking a sweat. And they’re happy to keep it there,” Jindel said.