Looming UPS Strike Could Disrupt Economy, Experts Warn | Entrepreneur

UPS workers have authorized their union, the Teamsters, to strike with an “overwhelming” 97% vote in favor, the organization announced on Friday.

“This vote shows that hundreds of thousands of Teamsters are united and determined to get the best contract in our history at UPS. If this multibillion-dollar corporation fails to deliver on the contract that our hardworking members deserve, UPS will be striking itself,” said Teamsters president Sean M. O’Brien in a statement.

The strike could happen as soon as August 1st (when the current contract expires) if a deal is not made between UPS and the union for a “strong new contract.”

Meanwhile, earlier in the week the Teamsters reached a tentative agreement with the company to address one of the main pain points workers have been advocating for — air conditioning.

“The Teamsters and UPS agreed to tentative language to equip the delivery and logistics company’s fleet of vehicles with air conditioning systems, new heat shields, and additional fans,” the union tweeted on Tuesday evening, and was also confirmed in a press release by UPS.

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BREAKING: TEAMSTERS SECURE AIR CONDITIONING FOR UPS FLEET IN MAJOR TENTATIVE DEAL

The #Teamsters and UPS agreed to tentative language to equip the delivery and logistics company’s fleet of vehicles with air conditioning systems, new heat shields, and additional fans. pic.twitter.com/GJ3iw8evRO

— Teamsters (@Teamsters) June 13, 2023

Under the agreement, all new vehicles purchased after January 1, 2024, will be equipped with air conditioning. Additionally, cab fans will be added to package cars “within thirty days of contract ratification.”

Original story below:

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.

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“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.

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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.