It is learned that in the past year, strikes in large companies such as Starbucks and Amazon have attracted attention from the outside world. But what is not well known is that the conflict between the American Teamsters Union and UPS is also intensifying.
The union's new president, Sean O'Brien, made the UPS contract his focus earlier this year, saying he wanted UPS to pay Teamsters more and demand improved working conditions.
Contract negotiations between UPS and the Teamsters union are set to begin next spring, before the current contract expires at the end of July 2023. But even before the talks begin, labor experts are predicting a strike by UPS drivers and package handlers.
O'Brien said the union would not approve any form of contract extension and would go on strike once the deadline was exceeded.
The union has not gone on strike against UPS since nearly two weeks of protests in 1997. If the union did go on strike, it would be the largest strike against a single company in U.S. history.
An estimated 6% of the U.S. gross domestic product is delivered by UPS trucks each year. The growth of online retail has made UPS and its drivers more important than ever, as it delivers many goods to stores, factories and offices in addition to home deliveries.
While FedEx Express (FDX), the U.S. Postal Service and Amazon's FBA delivery service also offer express delivery, their shipping capacity is only a fraction of the 21.5 million U.S. packages that UPS delivers every day.
UPS and the Teamsters have worked together for nearly 100 years, and UPS CEO Carol Tomei said the company's union contract is a competitive advantage at a time when workers are scarce.
Last year, it took UPS just nine months to report an already record full-year profit. At the end of 2021, UPS's operating income increased by 50% to $13.1 billion. In the first half of this year, earnings increased by another 10% compared with a year ago.
Carol-Thomé also sought to assure investors and UPS customers that the company would be ready if the union did strike. At the same time, she said: "UPS is building a contingency plan, but our goal with the truck drivers is a win-win situation."
Editor✎ Ashley/ Disclaimer: This article is copyrighted and may not be reproduced without permission. |
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