UPS Workers Could Go On Strike As Teamsters Say Negotiations Broke Down

Topline

United Parcel Service (UPS) workers going on strike became more of a possibility Wednesday as talks between the company and the Teamsters union representing workers broke down, which threatens to disrupt national supply chains and stymie millions of Americans’ package deliveries if the two sides can’t agree on a deal by the end of the month.

A UPS delivery person carries a package from a truck in Fort Worth, Texas, on Jan. 26.

Key Facts

The Teamsters union, which represents approximately 330,000 UPS workers, said UPS walked away from the bargaining table at around 4:00 a.m. Wednesday, after the company presented an “unacceptable offer” during negotiations for workers’ new contract.

UPS “refused to give the Teamsters a last, best, and final offer, telling the union the company had nothing more to give,” the union said, adding it has “repeatedly made clear that UPS members will not work beyond the expiration of the current contract.”

In a statement to Forbes, UPS denied it had walked away from negotiations, saying the Teamsters “have stopped negotiating despite UPS’s historic offer that builds on our industry-leading pay” and “the union has a responsibility to remain at the table.”

The workers’ contract will expire on July 31, and 97% of members have voted to authorize a strike if warranted.

It’s still possible a deal could be reached by then, though the Teamsters said Wednesday that no additional negotiations have yet been scheduled.

Crucial Quote

“This multibillion-dollar corporation has plenty to give American workers — they just don’t want to,” Teamsters General President Sean M. O’Brien said in a statement Wednesday. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”

Chief Critic

“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. economy. Only our non-union competitors benefit from the Teamsters’ actions,” UPS said Wednesday. “We’re proud of our offer. … The Teamsters should return to the table to finalize this deal.”

Big Number

24%. That’s UPS’ market share in the U.S. parcel shipping market as of 2022 based on parcel volume, according to the Pitney Bowes Parcel Shipping Index. That makes it second only to the U.S. Postal Service with 32% and just ahead of Amazon (23%). UPS delivered 5.2 billion packages in 2022—out of 21.2 billion packages across all companies—with 162 packages shipped per U.S. household on average.

Surprising Fact

UPS’ agreement with the Teamsters is the largest private-sector union agreement in the U.S., according to Bloomberg, and the company is the single largest employer of Teamsters in the country.

Key Background

The potential UPS strike is part of a broader wave of labor unrest that’s been seen across the country in recent months. The Writer’s Guild of America has been on strike since May, with a second strike by the Screen Actors Guild of America possibly looming, and hotel workers in Southern California walked off the job on Sunday in a strike for better pay and benefits. Twenty-one Starbucks locations were also closed briefly in June as part of a strike by the company’s unionized workers, among other recent union efforts. Amazon workers have also banded together in unionization efforts over the past year, and President Joe Biden and Congress intervened in December to prevent a nationwide rail strike.