Earlier this month, the Teamsters union representing UPS workers voted to authorize a strike if no agreement is reached by July 31, when the existing contract will expire.
A UPS strike would be historic. If the 340,000 UPS Teamsters decided to strike, it would be the largest single-employer strike in U.S. history. The last time UPS workers decided to strike occurred over 25 years ago when 185,000 workers conducted a 15-day walkout, crippling delivery services.
A strike authorization does not mean a strike is imminent. Although 97% of unionized workers voted to authorize a strike, this gives negotiators leverage and the option to strike if demands are not met.
Negotiations between the Teamsters and UPS began April 17. The current contract between UPS and the Teamsters union representing its rank-and-file workers will expire at midnight July 31.
UPS employees authorize strike.What that means for you.
How would a UPS strike impact deliveries?
Since the 1997 strike, UPS has grown to become a crucial part of the U.S. economy. A strike would have far-reaching implications on the economy.
The company says it delivers the equivalent of about 6% of the nation’s gross domestic product. UPS delivers around 25 million packages a day, representing about a quarter of all U.S. parcel volume, according to the global shipping and logistics firm Pitney Bowes.
Larger companies could be better prepared to navigate a strike than smaller ones said John Haber, formerly a part of UPS’ corporate finance office to CNN. There will be some empty shelves, higher prices, and slower package deliveries for customers if the strike lasts longer than a week, experts told the outlet.
Additionally, competitors such as FedEx and the U.S. Postal Service lack the capacity to absorb the nearly 20 million packages that UPS would stop delivering daily if a strike occurred, according to Bloomberg. FedEx and USPS already handle 16.5 million and 23.8 million daily packages, respectively, according to their websites.
How likely is a strike?
On Tuesday, the Teamsters unions told UPS “you’ve got one week.”
“The Teamsters want a powerful tentative agreement within the next week — or the union will demand UPS present its last, best, and final offer,” said the union in a tweet.
While UPS has until the end of the month to finalize a deal, any agreement would need the approval of the Teamsters’ national committee and voted on by union members before the current contract expires.
Negotiations are ongoing, and the Teamsters have made some progress on their demands. On June 13, the Teamsters and UPS announced a deal to bring air conditioning to UPS delivery vehicles.
The agreement would mandate that UPS brown package cars purchased after Jan. 1, 2024 include in-cab air conditioning systems. Regular package cars, which make up the majority of the company’s 93,000-vehicle fleet, will be outfitted with two fans.
However, not all of the Teamster’s demands have been met.
“The odds of a strike are as high as they have been since 1997, but they’re still less than 50%,” Alan Amling, a fellow at the University of Tennessee’s Supply Chain Institute and a former UPS executive, told CNN.
What are the demands of the UPS drivers?
According to Teamsters Local 89, the demands from the union include no more excessive overtime, no more two-tier pay, higher part-time pay, more full-time jobs, job security for feeders and package drivers, and video camera and harassment protection.
According to UPS, the company believes the union will bargain over job creation and opportunities, pay and benefits, paid time off, part-time jobs, two-tier drivers, overtime, personal vehicle drivers, heat safety, and vehicle cameras.
‘Practice picket’
In Louisville, many of Teamsters Local 89 members began practicing a picket line Wednesday morning at Worldport, the largest sorting and logistics facility in America.
The UPS Teamsters held signs that read “Just practicing for a just contract,” and as vehicles drove past the practice picket, many cars honked their horns to show support.
The Louisville action comes days after the International Brotherhood of Teamsters General President Sean O’Brien called for practice pickets nationwide after claiming UPS presented an “appalling economic counterproposal” to the Teamsters during national negotiations for a new labor contract.
When will we know if UPS drivers will strike?
The current contract expires on July 31. A strike could be triggered on August 1 if no agreement is reached.
Contributing: Olivia Evans, Donovan Slack, The Associated Press
