Posted on 07/19/23
| News Source: FOX45
Negotiations between UPS and the International Brotherhood of the Teamsters remain frozen as the July 31st contract deadline looms.
Some 340,000 workers could strike, which could be one of the biggest labor actions in U.S. history. This would mean slower delivery times, supply chain disruptions and higher shipping costs.
UPS workers deliver millions of packages a day, handling about a quarter of total deliveries in the U.S.
Last year, UPS delivered an average of more than 24 million packages each day, totaling over 6 billion in the year.
“We deliver packages each business day for 1.6 million shipping customers to 11.1 million delivery customers in over 220 countries and territories,” the company's website says. “In 2022, we delivered an average of 24.3 million packages per day, totaling 6.2 billion packages during the year.”
In the event of a strike, 30% of packages could be affected and competitors like FedEx, the U.S. Postal Service and DHL would not be able to cover the backlog.
The strike would not just include ground workers, but the company’s pilots as well. UPS has 3,300 pilots who are represented by the Independent Pilots Association, which is separate from the Teamsters.
The pilot’s union said if the Teamsters go on strike, they will honor it and not fly, resulting in the shutdown of the company’s global air operations.
A study by Anderson Economic Group found that a 10-day strike could cost the economy upwards of $7 billion. That includes $4.6 billion in customer losses, $1.1 billion in lost wages and $800 million in company losses for UPS.
UPS said it will start training nonunion workers – or scabs – in efforts to prevent a labor disruption.
Over the coming weeks, many of our U.S. employees will participate in training that would help them safely serve our customers if there is a labor disruption,” the company said in a statement last week.
While it would have significant impacts, this would not be the first UPS strike the U.S. has seen.
In 1997, 187,000 UPS workers went on strike. It was considered one of the most significant labor disputes the U.S. had ever seen.
The strike lasted for 15 days, stopped the delivery of 80% of the company’s shipments and cost the company between $750 and $850 million.