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Home News Workforce

UPS and Union Employee Contract Negotiations Come to a Standstill

The existing contract, which covers approximately 340,000 workers, is set to expire on July 31.

Dominic CatacorabyDominic Catacora
July 5, 2023
in Workforce
Reading Time: 2 mins read
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UPS and Union Employee Contract Negotiations Come to a Standstill

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What’s going on:      

The United Parcel Service (UPS) and the Teamsters Union are currently at a deadlock over negotiations for a new contract, according to Reuters. The existing contract, which covers approximately 340,000 workers, is set to expire on July 31. Despite UPS updating its offer last week, it’s reported that the union has deemed it insufficient. The union claims that UPS has abandoned the negotiation table, an allegation that UPS refutes, accusing the union of halting negotiations instead.

Why it matters:     

These negotiations could potentially lead to a strike by UPS workers, the first since a 15-day strike in 1997, according to Reuters. A labor action of this magnitude could put millions of daily deliveries at risk, potentially disrupting supply chains and impacting businesses and consumers alike.  

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For the workers, this negotiation is crucial as they seek better pay and improved working conditions, especially after missing out on wage increases that many in other industries received during the pandemic. The outcome of these negotiations could set a precedent for future labor contracts, particularly in industries grappling with high labor shortages.  

How it’ll impact the future:       

If a strike occurs, it could have long-term implications for UPS and its workforce. The company may struggle to regain the volumes it loses to rivals like FedEx, potentially leading to large job losses. The situation sheds light on the importance of fair compensation and safe working conditions, issues that are likely to become even more prominent in post-pandemic labor negotiations. The outcome could inspire or discourage union workers in other industries to push for better terms in their own contracts.

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Source: Reuters
Tags: Workforce
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Dominic Catacora

Dominic Catacora

Dominic Catacora is a Staff Writer for Allwork.space. He is based in Pittsburgh, PA. He graduated from Radford University in 2017 with a Bachelor of Science degree in Media Studies - Journalism. He has previously covered the Historic Triangle as a journalist living in Williamsburg, Va, and is now focused on writing related to the future of work.

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