A potential UPS worker strike over wages, air-conditioning in trucks and pensions after stalled negotiations could have serious consequences.
By one estimate, a UPS strike could cost more than $7 billion if it goes on for 10 days, according
A chunk of that lost money would be striking workers not receiving a paycheck. An estimated 340,000 workers that are part of the could strike across the country if negotiations aren鈥檛 met by Aug. 1. UPS customers across the country could lose $4 billion, causing disruptions in various sectors, from medical suppliers to the auto industry, said Shay Manawar, senior analyst for Anderson Economic Group.
鈥淚t's a serious concern,鈥� Manawar said. 鈥淣ot just for those who are employed at or through Teamsters or UPS, but also who use those facilities, for example, small mom-and-pop shops, and businesses who rely upon UPS and their services, to ensure that their revenues keep flowing.鈥�
In the Dallas-Fort Worth area alone, a strike would affect about 10,500 workers, said David Reeves, president and principal officer of Teamsters Local 767. After negotiations came to a standstill on July 5, workers have been practicing picketing at UPS sites across the area, including in Fort Worth. Among the discussions in the new contract is adding air-conditioning units to all new trucks to avoid heat-related injuries.
馃搷贬补蝉濒别迟
— Teamsters Local Union 767 (@Teamsters767)
Day in and day out, our hardworking at show up to work with unwavering dedication and commitment. They go above and beyond to ensure packages are delivered promptly, even at the cost of their own well-being.
But the negotiations have stalled out over pensions and wages, Reeves said.
鈥淲e believe our members went and made UPS a very successful company throughout the pandemic,鈥� Reeves said. 鈥淭his gives UPS the opportunity to show our members, their employees, exactly what they're worth.鈥�
UPS generated in profits in 2022.
What if UPS workers strike?
UPS said the company is focused on reaching a contract by Aug.1, but it is as part of a business continuity plan if a strike does happen. UPS said in a statement before the deadline to reach a deal.
The company handles 24 million packages a day. The U.S. Postal Service and FedEx can only handle so many packages to offset supply chain delays. Cliff Defee, an associate professor of supply chain management at the Texas Christian University Neeley School of Business, estimates 40-50% of packages can鈥檛 easily be shifted to other carriers.
鈥淟ocally if you're a small business, or if you are someone that's getting deliveries at home, as a consumer from UPS, you can expect to see some service failures,鈥� Deffee said. 鈥淎nd as a small business customer, the inability to get some shipments out on time.鈥�
It鈥檚 still uncertain whether workers will strike. Many negotiations go until the last minute, Art Wheaton, director of labor studies at
Striking can be stressful, both for the company and employees striking. Striking employees won鈥檛 get paid while they strike. UPS might face complaints and lost business. As of now, UPS and Teamsters negotiators have until 11:59 p.m. on July 31 to solidify a contract.
鈥淭hat's when I would expect you to hear a resolution,鈥� Wheaton said. 鈥淭hat's if they want to avoid some of the really big heartache and pain that the strike would cause.鈥�
Then again, Wheaton said, a lot more unions are willing to strike. Large leaps in prices leave a gap between the company鈥檚 last contract and increased prices. A low unemployment rate means plenty of available jobs and the perception that workers can go somewhere else if things don鈥檛 work out. People also have a positive impression of unions, a high not seen since the 1960s, Wheaton said.
Right now, actors and writers United Airlines pilots recently got a 40% raise over four years in recent negotiations, spurring pilots at Fort Worth-based Americans Airlines Flight attendants at American Airlines are also voting to authorize a strike.
鈥淧eople are hitting a tipping point,鈥� Wheaton said. 鈥淎nd are willing to try to say, you know what, if we ever had a time to try to get a better deal, now is the time.鈥�
The last UPS strike was in 1997, and lasted 15 days. The last contract was ratified in 2018.
Seth Bodine is a business and economic development reporter for the Fort Worth Report. Contact him at seth.bodine@fortworthreport.org and follow on Twitter at .
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