UPS IS Striking: Takeaways From The Potential UPS Strike

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A strike by UPS workers could be happening as negotiations have collapsed, and there are five things for the public to be aware of as the deadline approaches.

Last week, negotiations between the International Brotherhood of Teamsters and United Parcel Service (UPS) broke down. The situation means that when the workers’ current contract winds up at the end of this month, chances are high that the 340,000 represented workers could walk out and strike. Their union authorized the move in a vote last month. 

For many who rely on the global company for shipping needs in today’s enlarged market including e-commerce giants like Amazon, a strike could be highly damaging. The last time UPS workers went on strike was in 1997, lasting 15 days and costing the brand $850 million at the time. But there are five things to understand as the situation develops.

First, the divide between the union and UPS lies in wages and benefits. The two sides had agreed on ending the dual-wage system and “forced overtime on drivers’ days off,” as well as giving employees Martin Luther King Jr. Day off permanently as a holiday. Another major victory for workers came when the shipping company agreed to equip all its delivery vehicles with cooling gear and training for heat safety.

Second, representatives for the workers said that they will keep working until the 31st. “Our administration has made it clear. We will not be working beyond the expiration date without the contract our members have demanded” Teamsters president Sean O’Brien said in a statement. If no deal is fully agreed upon, August 1st would be the beginning of the strike.

UPS has publicly said they’ve begun putting “contingency plans” and schedules in place for products to be delivered and to account for those on strike, noting that they’re responsible for six percent of the nation’s gross domestic product (GDP). They have also made repeated requests to the union to return to the negotiating table since the talks collapsed.

Lastly, competitors are lining up to take advantage. The United States Postal Service on Monday (July 10th) said it was “ready to compete for an increased share of the growing package business,” offering a new coast-to-coast shipping option called Ground Advantage. FedEx released a statement as well touting their services after news of the breakdown in talks. “In the spirit of business and service continuity, we encourage them to take action now,” it said.

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