UPS Strike Looms, and That Could Be Bad News for You

Looks like 340,000 UPS workers could go on strike next month after the shipping company and the Teamsters union failed to reach a deal on a contract renewal before negotiations ended Wednesday morning. The current contract ends July 31, and while that might seem like enough time for a settlement to be reached, CNN reports that "nervous" UPS customers are likely to move their business to competitors including FedEx and the US Postal Service by the end of this week. One expert who works in the shipping industry notes that after the last UPS strike in 1997, the shipping company got 90% of its business back after the strike ended, but this time—thanks to an increased number of competitors as well as those competitors getting increasingly competitive with their offerings—that number could drop to 70% if a deal isn't reached soon. More coverage:

• Who walked away? Both sides say the other, the Washington Post reports. Teamsters says that after it rejected UPS' offer early Wednesday, the company said it had "nothing more to give" and walked away. But in its statement, UPS says there is nearly a month left to figure out a deal, and adds, "We have not walked away, and the union has a responsibility to remain at the table." No new talks are currently planned.
• How much longer do they really have? On June 30, UPS had pledged to reach a deal by Wednesday, which of course didn't happen. The Louisville Courier-Journal explains that deadline was chosen because the union needs time to distribute the new contract to members, who then vote on it before the union ratifies it.
• How long has this been going on? Contract negotiations are being described as "marathon" by various media outlets; the dispute over pay and automation has been going on almost a year and has already led to intermittent shutdowns at some ports.
• What still needs to be worked out? No details of the current offer were made public, and it's not clear exactly what disagreements remain, but the Teamsters mentioned "outstanding economic issues, like higher wages for full- and part-time Teamsters and pension increases" in its statement. Part-time workers earn an average of $20 an hour after 30 days at the company, while full-time drivers make an average of $95,000 per year. The two sides have already reached a compromise on some issues, including adding air-conditioning to trucks and not adding driver-facing cameras.
• Will shipping customers be impacted? The Courier-Journal reports that at a minimum, shipping delays are likely if UPS workers go on strike, but that in a truly bad scenario, a strike "could effectively halt the supply chain nationwide."

(More UPS stories.)