The possibility of a UPS strike looms as negotiations between the shipping giant and the Teamsters Union have reached a critical stand-still.
With an Aug. 1 deadline approaching, 340,000 employees nationwide are preparing to picket when the five-year contract between the nation’s largest trucking company and the labor union comes to an end.
A strike could have major impacts on average Americans and businesses nationwide.
UPS delivered around 21 million packages a day across the country last year -- and moves about 6% of the United States’ gross domestic product.
“All we want is a fair contract, fair wages, you know, fair, fair protection, and it’s up to the company to see if they can provide that,” said Daniel Sandoval, union representative for Teamsters Local 104.
Teamsters leadership said disagreements over union demands like a pay raise for part-time workers stalled negotiations last week.
On its website, UPS says it was the Teamsters who halted talks, writing “We have encouraged the Teamsters to return to the table to continue building on the significant progress we have made.”
“They made billions last year. All these men and women out here behind me, they worked through the pandemic, they kept America moving and brought all the goods to everybody,” said Jay Osowski, secretary-treasurer for Teamsters Local 404.
So, what does a potential strike mean for the average American?
Customers can still expect their package deliveries through July. But if a strike happens, the future of deliveries is unclear.
Your online orders and other deliveries could see delays and disruptions.
“There’s no other delivery service that can make up for the work that our workers do,” said Tanner Fischer, president of Teamsters Local 90. “I would imagine a lot of things wouldn’t get delivered. If there’s no agreement by Aug. 1, we’re all walking.”
For small-business owners, a strike could disrupt supply chains and impact their ability to fulfill orders on time. And their revenue and customer satisfaction could take a hit.
Economists say transporting goods is a critical step of the supply chain and any disruption in delivery can create bottlenecks and increase costs for businesses, and all of that could lead to higher prices for consumers.