Negotiations over the national contract began in April. Those regions finally agreed to tentative terms in late June. And by mid-May, tentative agreements had been reached on all supplements except two: Louisville and Northern California. In March, regional unions began the bargaining process with UPS over supplemental contracts for their employees. The bargaining process started last August with the introduction of a contract campaign. UPS Airlines pilots who are members of Independent Pilots Association union will support the picket line, just like in 1997.Ī strike risk analysis from Deutsche Bank indicates the Teamsters strike fund of $346 million will be completely depleted within three weeks of a strike starting. "This hub is crucial to UPS and the flow of their business." "If we were forced to go on strike because UPS didn't want to give these members what they deserve, it would cripple the company," Avral Thompson, the president of Teamsters Local 89, said June 28. Customers could see slower delivery of goods to households, higher prices on products and shipping and yet another breakdown of the modern supply chain, according to the Associated Press. In an economy dependent on the logistics and shipping industry, a UPS employee strike could have more drastic consequences than in 1997. Nationwide, the company employs close to 500,000 workers with roughly 65,000 being UPS drivers.
Metro Louisville workers at Worldport handle roughly 416,000 packages per hour, with most packages touched twice by a person. GDP daily," including everything from home-ordered Amazon packages to business shipments. The company estimates it " transports more than 3% of global (gross domestic product) and about 6% of U.S. UPS supports the national and global economy. "Only our non-union competitors benefit from the Teamsters’ actions." "Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. But a UPS strike could effectively halt the supply chain nationwide. View Gallery: UPS Teamster union workers hold practice picket outside WorldportĪt the very least, a strike means delays to package deliveries. What does a UPS strike mean for customers? The 15-day strike by 185,000 workers “largely crippled the world's largest package delivery company,” according to a New York Times article from August 1997. The last time UPS Teamsters walked off the job was in 1997, creating the 19th largest strike in American history. history, with union members rotating picket line shifts 24/7, said Stephen Piercey, communications director for Teamsters Local 89, which represents roughly 10,000 UPS employees in Louisville at Worldport, the largest shipping and logistics facility in America. The UPS Teamsters strike is expected to be the largest single employer strike in U.S. O'Brien also said that Teamsters would not work past July 31 without a fully ratified contract.
With only 26 days remaining until expiration, it is unlikely a new contract will be agreed upon and ratified in time. Though the current contract does not expire until midnight July 31, O'Brien said in a press conference July 1, the union needed time to ratify the new contract which includes disseminating the contract to union members and having the members vote to pass the contract. What about FedEx? If there's a strike at UPS, could FedEx be the ones that benefit? Why is the July 5 deadline important? On June 30, UPS pledged to reach a new contract by July 5 with Teamsters. "This multibillion-dollar corporation has plenty to give American workers - they just don’t want to,” said Teamsters General President Sean M. We have not walked away, and the union has a responsibility to remain at the table," said Jim Mayer, a UPS spokesperson in a statement.īut the union said UPS is the one who walked away, regardless of who walked away, the Teamsters sit ready to strike Aug. "We have nearly a month left to negotiate. The company said the union walked away from negotiations.
What to knowĪt 4 a.m., negotiations between UPS and Teamsters ended.Īfter more than two months of negotiations, UPS and Teamsters - the union representing more than 340,000 of the company's workers - were unable to reach a consensus on a new four-year labor contract, ending talks early Wednesday morning.Īt this time, no additional negotiations are scheduled.
Watch Video: A nationwide UPS strike is looming on the horizon.
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