Title: UPS to Return to Bargaining Table in Efforts to Avoid Potentially Devastating Strike
Date: July 19, 2023
In a move to prevent a potentially damaging strike on August 1, United Parcel Service (UPS) announced on Wednesday that it would return to the bargaining table with an improved offer for their approximately 340,000 Teamsters-represented workers in the United States.
“We are prepared to increase our industry-leading pay and benefits, but need to work quickly to finalize a fair deal that provides certainty for our customers, our employees, and businesses across the country,” UPS stated in a press release.
The International Brotherhood of Teamsters confirmed that the world’s largest delivery company contacted them with an offer to resume negotiations next week. Talks between the two sides had broken down on July 5, with both parties blaming each other.
One of the key points of contention in the negotiations is the issue of pay increases for experienced part-time workers. Due to the labor shortage in recent years, new hires have seen their starting wages rise, sometimes surpassing the wages of more experienced part-time workers.
The potential disruption caused by a strike would have far-reaching implications, as UPS handles approximately 20 million packages per day, accounting for about a quarter of all parcel shipments in the United States. These shipments include deliveries for online retail giant Amazon.com, high-value prescription drugs for medical professionals and hospitals, as well as inventory for countless other small and large businesses.
According to estimates from a think tank, a 10-day strike could result in losses exceeding $7 billion, making it one of the costliest strikes in at least a century.
In solidarity with the striking workers, UPS pilots, who belong to a different union, have pledged to cease flying operations. The Teamsters have also been organizing “practice pickets” in major cities across the country to maintain pressure on the company.
Despite the tensions and uncertainty surrounding the negotiations, many transportation executives and analysts believe that both sides will reach a deal before the August 1 deadline. Each side has a vested interest in avoiding a strike, as UPS heavily relies on its skilled and loyal Teamster employees, while the company is the largest employer of Teamsters at a time when unions are striving to grow.
Teamsters leader Sean O’Brien has explicitly requested that President Joe Biden refrain from intervening in the talks, even as various retail groups and interested parties advocate for the administration’s involvement.
As the negotiations are set to resume next week after a 2.5-week break, industry analysts suggest that the possibility of a strike on August 1 remains possible but not yet probable. The news of renewed negotiations provides hope for a resolution to be reached before the deadline.
Reporting by Lisa Baertlein in Los Angeles, Priyamvada C in Bengaluru, and David Shepardson in Washington; Editing by Chris Reese and Josie Kao
[1/4] Article by Lisa Baertlein