UPS and Teamsters Union to Return to Talks Before Potential Aug. 1 Strike

UPS said yesterday that it would return to the bargaining table with employees in order to avoid a potential strike that would otherwise take place on Aug. 1.

"We are prepared to increase our industry-leading pay and benefits, but need to work quickly to finalize a fair deal that provides certainty for our customers, our employees, and businesses across the country," UPS said in a statement to Reuters.

The International Brotherhood of Teamsters reportedly acknowledged UPS' offer to resume talks after the union was active on social media, posting UPS workers preparing for picket lines and stating that a strike could take place as early as July 24.

"...for them to miss these payments is shameful and an insult to the thousands of Teamster families who have sacrificed so much for so long to keep these companies alive," Murphy said.

— Teamsters (@Teamsters) July 19, 2023

If UPS were to go on strike, Reuters reported that a 10-day strike would cost the economy more than $7 billion, with UPS handling a quarter of the nation's shipments. In addition to striking workers, UPS pilots would likely strike out of solidarity, despite being a part of a different union.

If the strike were to happen, too, there would be 160,000 non-union UPS employees who would be expected to work during a strike, but that number pales in comparison to the 340,000 Teamster members, meaning UPS' shipment abilities would diminish significantly. Also, as orders shift to other companies like FedEx, delivery times would still slow down as they deal with the increased demand.

"We believe an August 1 strike at UPS remains possible but not yet probable," Bascome Majors, an analyst for Susquehanna International Group, told Reuters. "Official news that Teamsters-UPS negotiations restart next week after a 2.5-week break clears a path to 'get to yes' before the deadline."

While talks had been moving along between the union and UPS, with agreements met over issues like air conditioning in more trucks and removal of a two-tier payment system for drivers who work weekends, the breaking point was a proposed wage increase for part-time workers, who make a minimum of $16.20 an hour, according to the AP.

Since UPS has agreed to return to talks, there's reason for optimism that UPS employees won't strike come Aug. 1. But, in the meantime, workers are prepared to do so, having demonstrated their commitment and readiness through the "practice strikes" meant to put pressure on the employer.

And Teamsters union president Sean O'Brien asked the White House to stay out of the issue and not force a contract, like government intervened with the potential rail workers strike.

"My neighborhood where I grew up in Boston, if two people had a disagreement and you had nothing to do with it — you just kept walking," O'Brien said. "We don't need anybody getting involved in this fight."