Five things to know about UPS strike as Teamsters contract talks fail

BY JULIA MUELLER - 07/10/23 

Talks between shipping giant United Parcel Service (UPS) and the International Brotherhood of Teamsters fell apart last week, upping the possibility that the union could strike in a massive walkout when their current contract expires at the end of this month.

The union, which represents roughly 340,000 members working for UPS, voted last month to authorize a strike if a deal isn’t reached before July 31. The strike would be one of the largest in U.S. history.

Here’s what to know about the looming possible strike:

What will happen to my packages?

A strike by the tens of thousands of UPS workers represented by Teamsters could significantly disrupt deliveries, potentially delaying packages or prompting higher shipping costs from other companies.

The shipping company has said it transports roughly 6 percent of the gross domestic product (GDP) for the US alone. But it has said it has “contingency plans” in place for both the products it is shipping and its members who may strike, UPS told The Hill last week.

Jonathan Gold, vice president of supply chain and customs policy at the National Retail Federation, said a strike would likely prompt a supply chain disruption like that which occurred during the pandemic, stalling deliveries.

FedEx, another shipping giant, said in a statement that “shippers who are considering shifting volume to FedEx” should start working with the company now.

A major UPS strike is looming — here’s what that means for your packages

“In the event of an industry disruption, FedEx Corporation’s priority is protecting capacity and service for existing customers,” the company said.

The United States Postal Service (USPS) Monday launched a new “coast-to-coast 2-5-day shipping offering” and said it’s “ready to compete for an increased share of the growing package business.”

A United Parcel Service delivery driver steers his truck, Friday, June 30, 2023, in the East Boston neighborhood of Boston. Frustrated by what he called an “appalling counterproposal” earlier this week, Teamsters General President Sean O’Brien, the head of the union representing 340,000 UPS workers, said a strike remains on the table.

 (AP Photo/Michael Dwyer)

What are they fighting over?

The shipping company and the union are divided over wages, benefits and compensation for workers as they negotiate a new contract before their current agreement expires at the end of this month.

Teamsters are also pushing for an end to a dual-wage system for delivery drivers and to “forced overtime on drivers’ days off,” as well as for better workplace protections and a holiday on Martin Luther King Jr. Day.

UPS drivers make $18.05 an hour in Arkansas, $17.63 in Oklahoma and $21.02 in Connecticut, according to Indeed.

UPS made $11.5 billion in net income in 2022, as profits exceeded fourth-quarter expectations. The company’s 2022 operating profits hit more than $13 billion, for an operating margin of 13 percent.

UPS and the union reached a tentative agreement on the two-tier wages, overtime and holiday at the start of this month, which was seen by many as a move that would lessen the likelihood of a strike, but tensions continue on other economic parts of the negotiations.

What will the strike affect?

“@UPS seems to think it has the luxury of time on its side – enough to ignore the needs of the #Teamsters who make its profits possible, including more than 150,000 part-timers who are the backbone of the company’s operations,” the union wrote on Twitter, noting that “340,000 Teamsters on strike can’t be ignored.”

“As it turns out, the company does not have the luxury of being able to ignore us. Because in just a few short weeks, UPS will have to reckon with fierce Teamster power in the streets if their disrespect continues,” the Teamsters union said.

Not only could the possible strike impact deliveries, a mass work stoppage of thousands of warehousing, transportation and delivery workers under the union could also effect commerce.

The last time UPS Teamsters walked out was more than 25 years ago in 1997, launching a 15-day strike that impacted the package supply chain worldwide.
When will we know if UPS Teamsters are striking?

Workers are set to strike if the union and UPS don’t reach a deal by the contract expiration date on July 31.

The union had pushed for a deal to be made by July 5, which didn’t materialize because of time needed to ratify a new contract.

On the July 5 deadline, Teamsters said UPS “walked away from the bargaining table after presenting an unacceptable offer to the Teamsters that did not address members’ needs.”

UPS last week urged the Teamsters to return to the table for negotiations and said that they “have not walked away.”

It’s not clear if we’ll know before July 31 if the union will definitely strike, but without a deal, union representatives have said workers will walk away from their posts as soon as the existing contract ends.

“We all have a contract till July 31st — we will work under that contract,” Teamsters Local 171  Vice President Scott Barry told outlet WDBJ7.

“Our administration has made it clear. We will not be working beyond the expiration date without the contract our members have demanded, and more importantly without the contract our members deserve,” Teamsters president Sean O’Brien said earlier this month.

United Parcel Service deliveryman walks through a neighborhood while carrying packages to a home, Friday, June 30, 2023, in Haverhill, Mass. 

(AP Photo/Charles Krupa)

What areas will the strike affect?

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Over the past few weeks, Teamsters workers have held “practice pickets” around UPS hubs across the country, according to the union.

Teamsters said new “practice picket” actions occurred in Mississippi, Alabama, Maryland, New York, Minnesota and California Saturday.

“As rank-and-file solidarity deepens, the eyes of the nation are on all @UPS#Teamsters, and public support for our historic contract fight is overwhelming,” the Teamsters union said. “Our members are ready to walk on August 1 if UPS doesn’t deliver what #Teamsters have rightfully earned.”