Looming UPS Strike Could Disrupt Economy, Experts Warn
UPS‘ unionized workers, represented by the Teamsters, are holding a vote on Monday to authorize a strike against the company, CNN reported. More than 330,000 members are participating in the vote and, if the strike happens, it would be the largest strike of workers from one employer in the country’s history.
The existing contract between workers and UPS expires on August 1, and in a new agreement, workers are demanding better working conditions (including having air conditioning in delivery trucks) and an increase in pay, considering UPS profits have soared over the past five years from a net income of $6.3 billion in 2018 to $11.3 billion in 2022.
“Our members worked really hard over the pandemic,” Teamsters spokesperson Kara Deniz told The AP. “They need to see their fair share.”
According to CNN, the Teamsters and UPS have been negotiating since early May and have already tentatively agreed on 24 issues presented, however, there are still some left to hash out.
“When you get into the meat and potatoes of wages and benefits, things can get very dicey, very controversial,” Teamster president Sean O’Brien told the outlet.
UPS reps told Entrepreneur that an agreement is likely on the horizon.
“We are pleased that we are making steady progress with the Teamsters on a wide array of topics,” a spokesperson said. “UPS is focused on reaching a deal that is a win for our employees, the Teamsters, UPS and our customers – and we’re committed to doing that before the end of July.”
UPS ships nearly 24 million packages daily, which is about a quarter of all U.S. parcel volume and accounts for nearly 6% of the country’s gross domestic product, according to data firm Pitney Bowes, per The AP.
If UPS’ nearly 350,000 unionized workers strike, it could trigger widespread supply chain issues which could impact retailers who have just recently rebounded from the supply chain constraints imposed by the pandemic.
Related: Hollywood Actors Vote 98% to Strike if ‘Fair Deal’ Isn’t Met By June 30
Meanwhile, as talk of a pending strike looms, UPS stock was down about 18% on Monday morning as compared to the company’s peak in August.
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