UPS braces for impending strike as Teamsters negotiations collapse

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UPS

UPS and the Teamsters Union have failed to reach a contract agreement, raising the possibility of a strike and sparking concerns about the economic impact. 

Both sides accused each other of abandoning the talks after negotiations that continued through the July 4 holiday.

The International Brotherhood of Teamsters said UPS walked away from the table, claiming the firm had “nothing more to give,” while UPS claimed the union stopped negotiating. 

Read More: UPS workers to strike over pay and benefits

The contract expires on July 31, leaving nearly a month to reach an agreement.

This potential strike adds to recent labor conflicts within the transportation industry, including disputes at West Coast ports and railway workers’ walkout threats. 

UPS and rivals like FedEx, DHL, and the U.S. Postal Service play a vital role in global trade as a major package delivery company. 

Approximately six percent of the country’s GDP passes through UPS each year.

Last month, union members voted overwhelmingly for a strike, and Teamsters leaders have said they won’t work beyond the contract expiration date. 

Read More: Southern California hotel workers strike demanding better pay and benefits

Despite the lack of new talks planned, UPS released a video showing workers participating in “practice picket lines,” indicating that strike preparations are intensifying.

The National Retail Federation, representing retailers, urged both sides to resolve their differences before the holiday shopping season. 

The details of UPS’s latest offer and the specific remaining issues have not been disclosed. 

However, the union has criticized previous pay raises, saying they don’t adequately address the cost of living for part-time workers.

The negotiations occur as UPS faces declining revenue following several years of rapid growth.

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The company reported a six percent decrease in first-quarter revenue compared to the previous year. 

It also faces competition from deep-pocketed rivals investing in expanding their logistics networks. 

A potential disruption in UPS service could present opportunities for non-unionized FedEx to expand its customer base.

A strike, even if brief, would have significant financial implications for UPS. 

The 1997 UPS strike, lasting 15 days and involving 185,000 workers, cost the company hundreds of millions in revenue.

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