When it comes to deliveries, we’re spoiled. There’s no other way to put it. Americans expect something to show up the day after they order it; when that doesn’t happen, it’s a problem. So, expect some potential problems this summer.
The Teamsters Union, representing 350,000 UPS workers, is still bitter about a labor contract they felt was forced on them in 2018, and they are ready to go to war during negotiations for a new contract, which means there could be a strike. And if UPS workers go on strike, something will have to be done about the 24 million packages they ship on an average day. That adds up to roughly 25% of all U.S. parcel volume.
Here’s a quote from Thomas Goldsby, logistics chairman in the Supply Chain Management Department at the University of Tennessee. “Something’s got to give. The python can’t swallow the alligator, and that’s going to be felt by all of us.”
In other words, it will be a supply chain nightmare. We still haven’t fully dug out of the hole from the supply chain disaster from 2021, and this would only make things worse.
One thing the union will be bringing up in negotiations is the fact that UPS profits are up nearly three times what they were before the pandemic. Workers want a nice chunk of that pie, according to Teamsters spokesperson Kara Denize. “Our members worked really hard over the pandemic,” said Teamsters spokesperson Kara Denize. “They need to see their fair share.”
Five years ago, workers rejected the contract they were offered, but union leadership pushed it through. People are still bitter. They want improvements in part-time pay, a reduction in overtime, and air conditioning in trucks.
The date to keep an eye on is August 1. That’s when workers will walk if there’s no new deal in place. If it happens, it will be the first strike in 25 years.
CEO Carol Tome has told investors recently that the company and union are not far apart on significant issues. She thinks a win-win contract is achievable.
Let’s hope so. If not, get ready to make a lot more trips to the store.
Add comment