One of the largest strikes in US history appears imminent. Here's how it'll impact you
The threat of a strike looms at the world’s biggest package courier.
Contract negotiations are slated to begin in the spring between United Parcel Service and the Teamsters Union, months before the union’s contract with UPS expires at the end of July, 2023.
Teamsters President Sean O’Brien has vowed to make UPS pay union members higher wages.
“Do our members wake up every day wanting a strike? I’d say no. But, are they fed up? Yes, they’re fed up,” O’Brien told CNN Business last week. “Whether or not there is a strike, that’s totally up to the company. We’re going to utilize as much leverage as we can to get our members the contract they deserve.”
A strike at UPS would impact virtually every household in the nation. An estimated 6% of the country’s gross domestic product is shipped in UPS trucks each year.
UPS not only delivers packages to homes, it also ships goods to stores, factories and offices.
“We want a contract that provides wins for our employees and that provides UPS the flexibility to stay competitive in a rapidly changing industry,” the company said in a statement this month. “UPS and the Teamsters have worked cooperatively for almost 100 years to meet the needs of UPS employees, customers and the communities where we live and work. We believe we’ll continue to find common ground with the Teamsters and reach an agreement that’s good for everyone involved.”
About 350,000 Teamsters work at UPS as drivers and package handlers. That’s more than half of the company’s global workforce.
UPS has added about 72,000 Teamster-represented jobs since the start of the COVID-19 pandemic.
The Chicago-Rockford International Airport is home to the second-largest UPS hub in North America. The hub is one of the city’s largest employers with about 2,000 people on staff, though it is unknown how many are part of the union.
More:UPS to invest $15M in Rockford airfreight hub
UPS ended 2021 with operating income up 50% to $13.1 billion. Earnings rose another 10% during the first half of this year compared to the same period in 2021.
At least one labor expert anticipates the drivers and package handlers employed by UPS will walk off their jobs.
“The question is how long it will be,” Rutgers University professor of Labor Relations Todd Vachon told CNN. “The union’s president ran and won on taking a more militant approach. Even if they’re very close (to a new contract agreement), the rank and file will be very hungry to take on the company.”
The Teamsters Union has not gone on strike against UPS since 1997.
Ken DeCoster covers business news and features. Contact him at 815-987-1391, kdecoster@rrstar.com or @DeCosterKen.
This article originally appeared on Rockford Register Star: Strike appears imminent at UPS. Here's how it'll impact you
