Contract talks between delivery truck drivers and the parcel giant UPS Inc. “collapsed” early this morning, bringing those employees one step closer to going on strike when their current agreement expires on July 31, the Teamsters union said.
A package delivery strike would have a deep impact on shippers and e-commerce retails, as UPS is the nation’s largest provider of courier and local delivery service by revenue, according to the business data platform Statista. In 2021, UPS held a 37% market share of that sector, putting it ahead of FedEx (33%), U.S. Postal Service (17%), Amazon (12%), and others (2%).
According to the Teamsters, UPS walked away from the bargaining table about 4am Wednesday morning “after presenting an unacceptable offer to the Teamsters that did not address members’ needs.” The group says its 340,000 full- and part-time worker members will not work beyond the terms of their current contract, which expires in less than four weeks. In June, UPS Teamsters authorized a potential strike through a 97% membership vote.
However, UPS contradicted that position, saying “We're proud of our offer and have not walked away.” In a statement, the company called on union representatives to return to the table and finalize a deal.
“The Teamsters have stopped negotiating despite UPS’s historic offer that builds on our industry-leading pay. We have nearly a month left to negotiate. We have not walked away, and the union has a responsibility to remain at the table,” UPS said in a release. “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.”
At this point, no additional negotiations are scheduled.
According to UPS, the labor agreement under discussion has two layers. The National Master Agreement (NMA) addresses topics such as wages, healthcare, and pension. And there are also more than 40 supplements and riders that cover specific areas of the country addressing local topics, such as route bidding, vacation selection, and optional holidays.
In order to approve a winning agreement, each eligible U.S. Teamsters-represented employee can vote on the NMA and the supplement and/or rider that covers their employment. The agreement covers UPS employees who are primarily package delivery drivers, tractor-trailer drivers, package handlers, clerks, and mechanics.
UPS did not commit to giving its workers a raise, but said that the average annual pay for UPS full-time package car drivers is $95,000 with an additional $50,000 in health, welfare, and pension contributions.
