'That's what solidarity is': This UPS worker fired back at a commenter who said drivers don't deserve $42/hour because it takes 'zero skill' — explains the real reason they could go on strike
Serah Louis
Wed, July 19, 2023
UPS workers are prepared to strike come August if the company doesn’t meet their demands for better pay and benefits. But with the deadline looming, some Americans are now pushing back on whether the postal delivery workers are entitled to those higher salaries in the first place.
"No way you deserve 42 an hour as a delivery guy lol. Takes zero skill,” wrote a viewer on one of UPS driver Juan Trujillo’s TikTok posts.
Trujillo fired back in a viral video, claiming that even $42/hour isn’t enough, which is why full-time UPS workers will be getting a raise of around $1.50 this year. UPS typically adds a cost-of-living adjustment (COLA) to its wages each year in addition to any other base raises, but the company has yet to confirm a hike for this year.
“We’re not going on strike because the drivers aren’t getting a raise,” Trujillo continues. “We’re going on strike because the part-timers are only making $16 an hour, and that’s unacceptable.”
If UPS and union members don’t reach an agreement by Aug. 1, 97% of union members have voted to authorize a strike — which would be the first in 25 years for the postal delivery giant.
Why UPS workers may go on strike
The Teamsters union, which represents about 340,000 UPS workers, is calling for better benefits, pay raises and to ax the two-tier wage system for part-time and full-time workers.
Delivering packages can often be a physically demanding job and especially with temperatures this summer hitting record highs, the conditions can range from uncomfortable to unsafe. UPS has reported at least 143 heat-related injuries to the federal Occupational Safety and Health Administration since 2015. In some cases, workers have been hospitalized, or even died.
A tentative agreement over air conditioning in delivery vehicles was reached in June, but negotiations fell apart last week, with each side accusing the other of walking away from the table.
On the UPS website, it says full-timers make $95,000 a year and part-timers earn $20 an hour on average after 30 days — but union leader Sean O’Brien told ABC News that’s “not telling the true story.”
O’Brien says full-timers work 60 to 65 hours a week, while part-time wages are actually closer to $16 an hour.
“UPS is selective. They pick and choose on who they're going to pay, what area, and they can raise the rates,” he says.
O’Brien says part-time workers are currently “working for poverty wages,” and his goal is to ensure UPS establishes a livable starting wage for these workers. The company reported over $100 billion in revenue last year, and O’Brien believes union members deserve to reap some of those benefits as well.
And many full-time workers agree. “I’ll sacrifice two weeks of work if [I have to] because that’s what solidarity is. That’s what we do,” Trujillo says in his video.
What a strike means for the economy
A 10-day UPS strike could cost the U.S. economy over $7 billion, with $4 billion in losses for consumers and small businesses, according to analysis from consulting firm Anderson Economic Group. This would also mark the most expensive strike in at least a century.
UPS makes up 24% of the market share by parcel volume, according to Pitney Bowes Parcel Shipping Index. Competitor FedEx also revealed in an internal report obtained by NPR that, "In the event of a market disruption, no carrier can absorb all UPS volume.”
If a strike goes ahead, Americans can expect slower delivery times, supply chain disruptions and even higher shipping costs.
Ohio State University logistics professor Terry Esper also told Forbes that rural areas with limited delivery options and small businesses that can’t afford to switch providers will be hardest hit by the strike.
Esper says even if businesses do find another provider, since many are contracted to delivery companies, any last-minute switching to standard published rates could drastically push up costs — and likely result in those costs being passed on to consumers.
Serah Louis
Wed, July 19, 2023
UPS workers are prepared to strike come August if the company doesn’t meet their demands for better pay and benefits. But with the deadline looming, some Americans are now pushing back on whether the postal delivery workers are entitled to those higher salaries in the first place.
"No way you deserve 42 an hour as a delivery guy lol. Takes zero skill,” wrote a viewer on one of UPS driver Juan Trujillo’s TikTok posts.
Trujillo fired back in a viral video, claiming that even $42/hour isn’t enough, which is why full-time UPS workers will be getting a raise of around $1.50 this year. UPS typically adds a cost-of-living adjustment (COLA) to its wages each year in addition to any other base raises, but the company has yet to confirm a hike for this year.
“We’re not going on strike because the drivers aren’t getting a raise,” Trujillo continues. “We’re going on strike because the part-timers are only making $16 an hour, and that’s unacceptable.”
If UPS and union members don’t reach an agreement by Aug. 1, 97% of union members have voted to authorize a strike — which would be the first in 25 years for the postal delivery giant.
Why UPS workers may go on strike
The Teamsters union, which represents about 340,000 UPS workers, is calling for better benefits, pay raises and to ax the two-tier wage system for part-time and full-time workers.
Delivering packages can often be a physically demanding job and especially with temperatures this summer hitting record highs, the conditions can range from uncomfortable to unsafe. UPS has reported at least 143 heat-related injuries to the federal Occupational Safety and Health Administration since 2015. In some cases, workers have been hospitalized, or even died.
A tentative agreement over air conditioning in delivery vehicles was reached in June, but negotiations fell apart last week, with each side accusing the other of walking away from the table.
On the UPS website, it says full-timers make $95,000 a year and part-timers earn $20 an hour on average after 30 days — but union leader Sean O’Brien told ABC News that’s “not telling the true story.”
O’Brien says full-timers work 60 to 65 hours a week, while part-time wages are actually closer to $16 an hour.
“UPS is selective. They pick and choose on who they're going to pay, what area, and they can raise the rates,” he says.
O’Brien says part-time workers are currently “working for poverty wages,” and his goal is to ensure UPS establishes a livable starting wage for these workers. The company reported over $100 billion in revenue last year, and O’Brien believes union members deserve to reap some of those benefits as well.
And many full-time workers agree. “I’ll sacrifice two weeks of work if [I have to] because that’s what solidarity is. That’s what we do,” Trujillo says in his video.
What a strike means for the economy
A 10-day UPS strike could cost the U.S. economy over $7 billion, with $4 billion in losses for consumers and small businesses, according to analysis from consulting firm Anderson Economic Group. This would also mark the most expensive strike in at least a century.
UPS makes up 24% of the market share by parcel volume, according to Pitney Bowes Parcel Shipping Index. Competitor FedEx also revealed in an internal report obtained by NPR that, "In the event of a market disruption, no carrier can absorb all UPS volume.”
If a strike goes ahead, Americans can expect slower delivery times, supply chain disruptions and even higher shipping costs.
Ohio State University logistics professor Terry Esper also told Forbes that rural areas with limited delivery options and small businesses that can’t afford to switch providers will be hardest hit by the strike.
Esper says even if businesses do find another provider, since many are contracted to delivery companies, any last-minute switching to standard published rates could drastically push up costs — and likely result in those costs being passed on to consumers.
Olivia Evans, Louisville Courier Journal
Wed, July 19, 2023
UPS and Teamsters, the union representing nearly 340,000 UPS workers are trying to reach a new five-year labor contract before the current contract expires at midnight on July 31.
Earlier this month, the two sides departed the bargaining table without coming to a consensus on a new contract. Teamsters have repeatedly said they will strike starting Aug. 1 if a new contract is not ratified. In June, Teamsters passed a strike authorization vote, giving the union the ability to strike if and when they deem necessary.
On Sunday the Associated Press reported that International Brotherhood of Teamsters General President Sean O'Brien said he has asked the White House not to intervene in the dispute between UPS and the union.
Since June, the union has declared it will strike on Aug. 1 if a tentative agreement is not reached on a full contract before expiration on July 31 at midnight.
If Teamsters were to strike, it would be the largest single employer strike in U.S. history and would cause massive disruption to the supply chain and U.S. economy.
UPS supports the national and global economy. The company estimates it "transports more than 3% of global (gross domestic product) and about 6% of U.S. GDP daily," including everything from home-ordered Amazon packages to business shipments to medical necessities.
In an economy dependent on the logistics and shipping industry, a UPS employee strike could have drastic consequences. Customers could see slower delivery of goods to households and higher prices on products and shipping, according to the Associated Press.
Here's what we know about the federal government's involvement in the UPS and Teamsters dispute.
What is the White House saying?
Recently, O'Brien has started saying Teamsters would be willing to return to negotiations. He also recently asked President Joe Biden to not intervene between UPS and Teamsters negotiations.
"Anytime ... there are these discussions we want to ensure we're playing a constructive and productive role," said U.S. White House press secretary Karine Jean-Pierre on Monday during a White House press briefing.
Jean-Pierre said the White House will continue to be in touch with both UPS and Teamsters and will "support any efforts to reach a solution."
"We are confident that both sides are going to come to an agreement," Jean-Pierre said.
Does the federal government have the power to intervene in a strike?
Yes.
Under the Taft-Hartley Act of 1947, the president could ask the attorney general to seek a federal court injunction to prevent or block a strike in court that was found to be endangering the public's health or safety. If the strike was found to endanger the public's health or safety, the two disputing parties could be ordered to reach a settlement within 60 days to resolve the dispute.
In 2002, then-President George W. Bush enacted the Taft-Hartley Act to stop an 11-day shutdown of 29 West Coast ports, the New York Times reported then.
Congress stopped the railroad strike in December. Can it do that with UPS?
In December, Biden signed legislation to prevent a strike by the railroad companies under the Railway Labor Act which also governs the UPS pilots and aircraft mechanics. At the time, President Biden warned a nationwide freight rail strike would be detrimental to the U.S. economy and would have triggered "a recession," USA Today reported.
Despite UPS having some of its employees governed under the Railway Labor Act, the current UPS dispute between the company and Teamsters does not fall under the Railway Labor Act.
USA Today White House correspondent Joey Garrison contributed to this report. Contact reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_
This article originally appeared on Louisville Courier Journal: UPS workers strike: White House asked not to intervene in negotiations
Yes.
Under the Taft-Hartley Act of 1947, the president could ask the attorney general to seek a federal court injunction to prevent or block a strike in court that was found to be endangering the public's health or safety. If the strike was found to endanger the public's health or safety, the two disputing parties could be ordered to reach a settlement within 60 days to resolve the dispute.
In 2002, then-President George W. Bush enacted the Taft-Hartley Act to stop an 11-day shutdown of 29 West Coast ports, the New York Times reported then.
Congress stopped the railroad strike in December. Can it do that with UPS?
In December, Biden signed legislation to prevent a strike by the railroad companies under the Railway Labor Act which also governs the UPS pilots and aircraft mechanics. At the time, President Biden warned a nationwide freight rail strike would be detrimental to the U.S. economy and would have triggered "a recession," USA Today reported.
Despite UPS having some of its employees governed under the Railway Labor Act, the current UPS dispute between the company and Teamsters does not fall under the Railway Labor Act.
USA Today White House correspondent Joey Garrison contributed to this report. Contact reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_
This article originally appeared on Louisville Courier Journal: UPS workers strike: White House asked not to intervene in negotiations
US retailers push for deal in UPS-Teamster talks as deadline looms
Lisa Baertlein
Wed, July 19, 2023
UPS Teamsters picket ahead of an upcoming possible strike in Brooklyn, New York
Lisa Baertlein
Wed, July 19, 2023
UPS Teamsters picket ahead of an upcoming possible strike in Brooklyn, New York
By Lisa Baertlein
LOS ANGELES (Reuters) - A U.S. retail industry group on Wednesday urged United Parcel Service and the Teamsters union to reach a labor contract deal and avert a strike that could result in billions of dollars of economic losses.
The world's biggest package delivery firm and the International Brotherhood of Teamsters have until midnight on July 31 to reach a contract deal covering some 340,000 workers that sort, load and deliver packages in the United States.
A key sticking point in the talks is pay increases for experienced part-time workers who are making roughly the same or even less than new hires because starting wages jumped due to the labor shortage in the last few years.
If a deal is not done by the deadline, UPS workers have vowed to strike.
Any disruption to the business of UPS would be broadly felt because the company handles about a quarter of the parcel shipments in the United States - including deliveries for online retailers like Amazon.com, high-value prescription drugs for doctors and hospitals, and inventory for millions of other large and small businesses.
A 10-day strike could cost the U.S. economy more than $7 billion, according to a recent estimate from Anderson Economic Group.
"Even the most robust planning won't shield retailers or consumers from the impact of shutting down a key component in the supply chain as we head full-steam into back-to-school and then holiday shopping seasons," the Retail Industry Leaders Association (RILA) said.
Regardless of the outcome, UPS customers may face higher shipping rates.
"A new Teamsters deal could drive cost per piece (about) 2% higher than current expectations," Susquehanna analyst Bascome Majors said in a client note this week.
Shippers will end up absorbing that extra cost, said Alfredo Ortiz, CEO of the Job Creators Network, a conservative advocacy group started by Bernie Marcus, the co-founder of Home Depot.
"It gets passed on to customers. That's what we're really concerned about," Ortiz said.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Chris Reese)
LOS ANGELES (Reuters) - A U.S. retail industry group on Wednesday urged United Parcel Service and the Teamsters union to reach a labor contract deal and avert a strike that could result in billions of dollars of economic losses.
The world's biggest package delivery firm and the International Brotherhood of Teamsters have until midnight on July 31 to reach a contract deal covering some 340,000 workers that sort, load and deliver packages in the United States.
A key sticking point in the talks is pay increases for experienced part-time workers who are making roughly the same or even less than new hires because starting wages jumped due to the labor shortage in the last few years.
If a deal is not done by the deadline, UPS workers have vowed to strike.
Any disruption to the business of UPS would be broadly felt because the company handles about a quarter of the parcel shipments in the United States - including deliveries for online retailers like Amazon.com, high-value prescription drugs for doctors and hospitals, and inventory for millions of other large and small businesses.
A 10-day strike could cost the U.S. economy more than $7 billion, according to a recent estimate from Anderson Economic Group.
"Even the most robust planning won't shield retailers or consumers from the impact of shutting down a key component in the supply chain as we head full-steam into back-to-school and then holiday shopping seasons," the Retail Industry Leaders Association (RILA) said.
Regardless of the outcome, UPS customers may face higher shipping rates.
"A new Teamsters deal could drive cost per piece (about) 2% higher than current expectations," Susquehanna analyst Bascome Majors said in a client note this week.
Shippers will end up absorbing that extra cost, said Alfredo Ortiz, CEO of the Job Creators Network, a conservative advocacy group started by Bernie Marcus, the co-founder of Home Depot.
"It gets passed on to customers. That's what we're really concerned about," Ortiz said.
(Reporting by Lisa Baertlein in Los Angeles; Editing by Chris Reese)
UPS pilots won’t fly if Teamsters strike
Eric Kulisch
Tue, July 18, 2023
Two Airbus A300 freighters wait to be loaded at the UPS facility at Dallas-Fort Worth International Airport.
Eric Kulisch
Tue, July 18, 2023
Two Airbus A300 freighters wait to be loaded at the UPS facility at Dallas-Fort Worth International Airport.
(Photo: Jim Allen/Freightwaves)
The union representing UPS pilots says they will not cross picket lines if Teamsters drivers and package sorters walk off the job when the current contract expires Aug. 1, resulting in the immediate shutdown of the express logistics company’s global air operations.
UPS (NYSE: UPS) has 3,300 pilots who are represented by the Independent Pilots Association (IPA), a separate union from the Teamsters.
“If the Teamsters are on strike, we will honor that strike and we will not fly,” IPA spokesman Brian Gaudet told FreightWaves.
UPS pilots are allowed to honor primary picket lines and did that for 16 days during the Teamsters’ strike in 1997.
Even with freighters in service, a strike by 340,000 package car drivers, truck drivers and warehouse workers would effectively ground most UPS Airlines operations because there would be few, if any, personnel to load and unload aircraft, process packages and deliver them to and from airport facilities. UPS says it is training nonunion employees to handle packages in the event there is a labor disruption. Parcel consulting firm ShipMatrix estimates management could move about 22% of the 18.6 million daily parcels in its system through contingency plans.
The Teamsters union has a $300 million to $350 million fund to support workers with strike pay, but UPS pilots who don’t report to work will bear the burden on their own.
“We don’t have a strike fund. If you’re a UPS pilot and you’re being asked to not cross that picket line, that means you stay in your hotel, you don’t show up, you don’t fly and it’s on your nickel,” said Gaudet.
UPS pilots ratified a two-year contract extension last August.
Bascome Majors, a senior transportation equity analyst at Susquehanna International Group, estimated in a research note that the Teamsters’ fund could last at least two weeks. Part-time workers would end up making about $210 less than their normal weekly pay, while full-timers would make about $1,450 less, which “could splinter enthusiasm for an extended strike and hurt Teamster solidarity.”
Barring a solidarity action by pilots, UPS likely would use a skeleton fleet to protect some international and overnight flights to its Worldport hub in Louisville, Kentucky, said Derek Lossing, founder of Cirrus Global Advisors, in an interview.
FedEx Express (NYSE: FDX) is the only air carrier that can realistically absorb UPS overnight, next-day package volumes, he explained. FedEx will try to take on as much of that business as it can because it is lucrative. Shippers that have a big relationship with UPS and only tender small volumes to FedEx are likely paying $6 to $8 more per parcel. FedEx can realistically handle 5% of UPS overnight volumes, Lossing added.
UPS management and the Teamsters union are at an impasse over wages and other economic issues after previously agreeing on other terms.
Rich labor deal poses risks
Analysts say UPS is in a bind because it already is experiencing some shipment diversion to rival FedEx and could drive away more customers if it sharply raises rates to help cover the cost of an overly generous Teamster deal.
A new Teamsters contract could drive the cost per parcel about 2% higher than current expectations and cut a dollar from UPS’ earnings per share next year, said Majors. Parcel consultants are forecasting that shippers can expect rate hikes of 6% to 10% in 2024, before a Teamsters contract is finalized.
Majors predicts the Teamsters’ contract will boost wages by 18% for part-time workers and 7% for full-timers, with another 7% increase in costs for inflation and other factors.
Many businesses that felt burned by UPS during the last three years, when demand soared and the carrier didn’t bend on applying steep rate hikes, could be willing to look for alternative carriers.
“If UPS gives away too much in labor costs, it’s going to be forced to raise rates to shippers and significantly lose a share of their wallet because the 12- to-18 month outlook doesn’t justify price increases,” wrote Lossing, a former logistics manager at Amazon who helped the online retailer build out its private cargo airline and international last-mile delivery network, on LinkedIn.
For every 10% increase in labor costs UPS negotiates, it will lose 4% of its average daily volume over the next two years, according to modeling conducted by Cirrus Global Advisors. If UPS tries to maintain margins by passing on costs to customers, a portion of its parcel business will spill to FedEx, the U.S. Postal Service, logistics companies that specialize in downstream parcel injection into the postal system, regional parcel carriers and Amazon’s own delivery network. FedEx would pick up about 180,000 daily ground packages, followed by Amazon (175,000), regional carriers (70,000), with the U.S. Postal Service and postal consolidators taking the remainder. If the Teamsters union wins a 20% increase in compensation, UPS could lose 140,000 daily packages to regional competitors.
Labor is UPS’ largest expense item, consuming nearly half of global revenue. According to UPS, delivery drivers on average earn $95,000 per year and part-timers earn $20 an hour, plus health and pension benefits. With FedEx and Amazon using an independent contractor model with nonunion workers for final-mile delivery, UPS has to control labor costs or risk “a slow spiral” that makes it uncompetitive, Lossing said.
Online shoppers will experience slower deliveries if there is a UPS strike and e-commerce companies will be forced to cancel free shipping and increase shipping charges, he predicted.
Companies that haven’t integrated other carriers besides UPS into their transportation planning systems could face significant operational and financial impact from a potential strike, logistics experts say.
The union representing UPS pilots says they will not cross picket lines if Teamsters drivers and package sorters walk off the job when the current contract expires Aug. 1, resulting in the immediate shutdown of the express logistics company’s global air operations.
UPS (NYSE: UPS) has 3,300 pilots who are represented by the Independent Pilots Association (IPA), a separate union from the Teamsters.
“If the Teamsters are on strike, we will honor that strike and we will not fly,” IPA spokesman Brian Gaudet told FreightWaves.
UPS pilots are allowed to honor primary picket lines and did that for 16 days during the Teamsters’ strike in 1997.
Even with freighters in service, a strike by 340,000 package car drivers, truck drivers and warehouse workers would effectively ground most UPS Airlines operations because there would be few, if any, personnel to load and unload aircraft, process packages and deliver them to and from airport facilities. UPS says it is training nonunion employees to handle packages in the event there is a labor disruption. Parcel consulting firm ShipMatrix estimates management could move about 22% of the 18.6 million daily parcels in its system through contingency plans.
The Teamsters union has a $300 million to $350 million fund to support workers with strike pay, but UPS pilots who don’t report to work will bear the burden on their own.
“We don’t have a strike fund. If you’re a UPS pilot and you’re being asked to not cross that picket line, that means you stay in your hotel, you don’t show up, you don’t fly and it’s on your nickel,” said Gaudet.
UPS pilots ratified a two-year contract extension last August.
Bascome Majors, a senior transportation equity analyst at Susquehanna International Group, estimated in a research note that the Teamsters’ fund could last at least two weeks. Part-time workers would end up making about $210 less than their normal weekly pay, while full-timers would make about $1,450 less, which “could splinter enthusiasm for an extended strike and hurt Teamster solidarity.”
Barring a solidarity action by pilots, UPS likely would use a skeleton fleet to protect some international and overnight flights to its Worldport hub in Louisville, Kentucky, said Derek Lossing, founder of Cirrus Global Advisors, in an interview.
FedEx Express (NYSE: FDX) is the only air carrier that can realistically absorb UPS overnight, next-day package volumes, he explained. FedEx will try to take on as much of that business as it can because it is lucrative. Shippers that have a big relationship with UPS and only tender small volumes to FedEx are likely paying $6 to $8 more per parcel. FedEx can realistically handle 5% of UPS overnight volumes, Lossing added.
UPS management and the Teamsters union are at an impasse over wages and other economic issues after previously agreeing on other terms.
Rich labor deal poses risks
Analysts say UPS is in a bind because it already is experiencing some shipment diversion to rival FedEx and could drive away more customers if it sharply raises rates to help cover the cost of an overly generous Teamster deal.
A new Teamsters contract could drive the cost per parcel about 2% higher than current expectations and cut a dollar from UPS’ earnings per share next year, said Majors. Parcel consultants are forecasting that shippers can expect rate hikes of 6% to 10% in 2024, before a Teamsters contract is finalized.
Majors predicts the Teamsters’ contract will boost wages by 18% for part-time workers and 7% for full-timers, with another 7% increase in costs for inflation and other factors.
Many businesses that felt burned by UPS during the last three years, when demand soared and the carrier didn’t bend on applying steep rate hikes, could be willing to look for alternative carriers.
“If UPS gives away too much in labor costs, it’s going to be forced to raise rates to shippers and significantly lose a share of their wallet because the 12- to-18 month outlook doesn’t justify price increases,” wrote Lossing, a former logistics manager at Amazon who helped the online retailer build out its private cargo airline and international last-mile delivery network, on LinkedIn.
For every 10% increase in labor costs UPS negotiates, it will lose 4% of its average daily volume over the next two years, according to modeling conducted by Cirrus Global Advisors. If UPS tries to maintain margins by passing on costs to customers, a portion of its parcel business will spill to FedEx, the U.S. Postal Service, logistics companies that specialize in downstream parcel injection into the postal system, regional parcel carriers and Amazon’s own delivery network. FedEx would pick up about 180,000 daily ground packages, followed by Amazon (175,000), regional carriers (70,000), with the U.S. Postal Service and postal consolidators taking the remainder. If the Teamsters union wins a 20% increase in compensation, UPS could lose 140,000 daily packages to regional competitors.
Labor is UPS’ largest expense item, consuming nearly half of global revenue. According to UPS, delivery drivers on average earn $95,000 per year and part-timers earn $20 an hour, plus health and pension benefits. With FedEx and Amazon using an independent contractor model with nonunion workers for final-mile delivery, UPS has to control labor costs or risk “a slow spiral” that makes it uncompetitive, Lossing said.
Online shoppers will experience slower deliveries if there is a UPS strike and e-commerce companies will be forced to cancel free shipping and increase shipping charges, he predicted.
Companies that haven’t integrated other carriers besides UPS into their transportation planning systems could face significant operational and financial impact from a potential strike, logistics experts say.
UPS is massive. Here's a breakdown of how a strike could impact delivery globally.
Olivia Evans, Louisville Courier Journal
Tue, July 18, 2023
UPS worker Geraldine Dawson holds up a sign while wearing a t-shirt with the logo 'Pay Up' in the style of United Parce Service as she and members of Teamsters Local 89 began a practice strike outside Worldport, the largest sorting and logistics facility in America Wednesday morning in Louisville, Ky. June 28, 2023
UPS and Teamsters, the union representing nearly 340,000 UPS workers are trying to reach a new five-year labor contract before the current contract expires at midnight July 31.
Earlier this month, the two sides departed the bargaining table without coming to a consensus on a new contract. Teamsters have repeatedly said they will strike starting on Aug. 1 if a new contract is not agreed upon. In June, Teamsters passed a strike authorization vote, giving the union the ability to strike if and when they deem necessary.
In Louisville, Kentucky, and nationwide, Teamsters Union barns have been hosting practice pickets ahead of what is anticipated to be the largest single-employer strike in U.S. history.
As of July 5, no additional negotiations between the union and the company have been scheduled.
UPS employs about 25,000 people in Louisville, one of the metro's largest employers, and close to 500,000 nationwide. Louisville is home to UPS Worldport, the largest sorting and logistics facility in America, and the UPS Airlines headquarters.
UPS supports the national and global economy, and the company estimates it "transports more than 3% of global (gross domestic product) and about 6% of U.S. GDP daily," including everything from home-ordered Amazon packages to business shipments and medical necessities. Employees at UPS Worldport play a major role in the company's economic impact, sorting more than 400,000 packages hourly.
Teamsters Local 89, represents roughly 10,000 UPS employees in Louisville. Stephen Piercey, the communications director for Teamsters Local 89, previously said a UPS strike would be a 24/7 operation at Worldport with union members rotating picket line shifts.
The more than 3,000 UPS Airlines pilots who are members of the Independent Pilots Association would support the picket line, just like it did in 1997, the last time UPS experienced a strike.
Domestically, UPS has five total airport hubs, including Worldport and excluding the company's Miami location which primarily serves Central and South America. UPS operates roughly 1,200 domestic and 780 international flight segments daily.
If a strike were to occur at UPS on Aug. 1, it could have a major effect on operations in Louisville. Here are five visuals that illustrate the scope of how a UPS strike could impact the company's domestic airline hubs and just how big UPS Worldport is.
Where are the domestic UPS Air Hubs located?
There are five domestic UPS Air Hubs. The hubs, located in Louisville, Kentucky, (UPS Worldport), Philadelphia, (UPS East Coast Hub), Dallas (UPS Southwest Hub), Rockford, Illinois (UPS Rockford Regional Hub) and Ontario, California, (UPS West Coast Hub), are all cities that have international airports.
How many daily flights does each hub have?
Across the globe, UPS serves more than 750 airports. Domestically, the five air hubs alone are responsible for more than 570 flights daily, almost 50% of all UPS domestic flight segments each day.
How big is each UPS domestic air hub?
Louisville's UPS Worldport facility is the company's largest air operations facility globally. In the U.S., Worldport is more than six times larger than the company's next largest domestic air hub in Ontario, California.
How many packages does the facility handle?
In 2022, UPS delivered an average of 24.3 million packages daily for a total of 6.2 billion packages delivered last year. For the company to deliver that quantity of packages to the more than 220 countries and territories it serves, the domestic air hubs are heavily relied on to sort and load packages quickly. At UPS Worldport, 416,000 packages are handled hourly.
What geographic area does the air hub serve?
Across the company, UPS services more than 220 countries and territories globally. The only air hub to provide service to all of these locations is the Worldport facility. The other four domestic hubs serve roughly 10-20 states each, with some overlapping areas of service.
Contact reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_.
This article originally appeared on Louisville Courier Journal: How a UPS Teamsters strike could impact delivery globally
Olivia Evans, Louisville Courier Journal
Tue, July 18, 2023
UPS worker Geraldine Dawson holds up a sign while wearing a t-shirt with the logo 'Pay Up' in the style of United Parce Service as she and members of Teamsters Local 89 began a practice strike outside Worldport, the largest sorting and logistics facility in America Wednesday morning in Louisville, Ky. June 28, 2023
UPS and Teamsters, the union representing nearly 340,000 UPS workers are trying to reach a new five-year labor contract before the current contract expires at midnight July 31.
Earlier this month, the two sides departed the bargaining table without coming to a consensus on a new contract. Teamsters have repeatedly said they will strike starting on Aug. 1 if a new contract is not agreed upon. In June, Teamsters passed a strike authorization vote, giving the union the ability to strike if and when they deem necessary.
In Louisville, Kentucky, and nationwide, Teamsters Union barns have been hosting practice pickets ahead of what is anticipated to be the largest single-employer strike in U.S. history.
As of July 5, no additional negotiations between the union and the company have been scheduled.
UPS employs about 25,000 people in Louisville, one of the metro's largest employers, and close to 500,000 nationwide. Louisville is home to UPS Worldport, the largest sorting and logistics facility in America, and the UPS Airlines headquarters.
UPS supports the national and global economy, and the company estimates it "transports more than 3% of global (gross domestic product) and about 6% of U.S. GDP daily," including everything from home-ordered Amazon packages to business shipments and medical necessities. Employees at UPS Worldport play a major role in the company's economic impact, sorting more than 400,000 packages hourly.
Teamsters Local 89, represents roughly 10,000 UPS employees in Louisville. Stephen Piercey, the communications director for Teamsters Local 89, previously said a UPS strike would be a 24/7 operation at Worldport with union members rotating picket line shifts.
The more than 3,000 UPS Airlines pilots who are members of the Independent Pilots Association would support the picket line, just like it did in 1997, the last time UPS experienced a strike.
Domestically, UPS has five total airport hubs, including Worldport and excluding the company's Miami location which primarily serves Central and South America. UPS operates roughly 1,200 domestic and 780 international flight segments daily.
If a strike were to occur at UPS on Aug. 1, it could have a major effect on operations in Louisville. Here are five visuals that illustrate the scope of how a UPS strike could impact the company's domestic airline hubs and just how big UPS Worldport is.
Where are the domestic UPS Air Hubs located?
There are five domestic UPS Air Hubs. The hubs, located in Louisville, Kentucky, (UPS Worldport), Philadelphia, (UPS East Coast Hub), Dallas (UPS Southwest Hub), Rockford, Illinois (UPS Rockford Regional Hub) and Ontario, California, (UPS West Coast Hub), are all cities that have international airports.
How many daily flights does each hub have?
Across the globe, UPS serves more than 750 airports. Domestically, the five air hubs alone are responsible for more than 570 flights daily, almost 50% of all UPS domestic flight segments each day.
How big is each UPS domestic air hub?
Louisville's UPS Worldport facility is the company's largest air operations facility globally. In the U.S., Worldport is more than six times larger than the company's next largest domestic air hub in Ontario, California.
How many packages does the facility handle?
In 2022, UPS delivered an average of 24.3 million packages daily for a total of 6.2 billion packages delivered last year. For the company to deliver that quantity of packages to the more than 220 countries and territories it serves, the domestic air hubs are heavily relied on to sort and load packages quickly. At UPS Worldport, 416,000 packages are handled hourly.
What geographic area does the air hub serve?
Across the company, UPS services more than 220 countries and territories globally. The only air hub to provide service to all of these locations is the Worldport facility. The other four domestic hubs serve roughly 10-20 states each, with some overlapping areas of service.
Contact reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_.
This article originally appeared on Louisville Courier Journal: How a UPS Teamsters strike could impact delivery globally
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