Talks Between UPS, Union Break Off

Facts

• On Wednesday, United Postal Service (UPS) and the Teamsters Union issued conflicting reports about why negotiations for a new contract with the shipping company’s 340K workers were stopped with a deadline looming to prevent a strike that would disrupt the US economy.¹
• Union officials accused UPS of walking away from talks after “presenting an unacceptable offer.”²
• UPS pushed back against the union’s allegations and said it’s the responsibility of the union to “remain at the table,” especially since it made a historic offer to improve the workers’ “industry-leading pay.”²
• Unionized UPS workers have authorized a strike if a deal isn’t reached before the expiration of the labor agreement at the end of July.³
• Among the union’s demands are higher pay, more full-time jobs, and the removal of surveillance cameras in trucks.⁴
• UPS, which handles goods worth an estimated 6% of the US economy, last dealt with a strike in 1997, when employees walked off the job for 15 days and cost the company hundreds of millions of dollars.⁵

Sources: ¹Reuters, ²Associated Press, ³Forbes, ⁴CBS, and ⁵BBC News.

Narratives

• Narrative A, as provided by Bloomberg Law. The union must know that UPS is in a tough spot financially as it comes out of the pandemic with stiffer competition. Teamsters leadership might have promised their membership they would be tougher in negotiations, but it’s in the best interest of both sides to come to a win-win agreement that will prevent a major disruption in the US economy.
• Narrative B, as provided by Washington Post. This is on UPS as the multibillion-dollar company is being stingy with its offers — which don’t keep up with the cost of living, especially for part-time workers. Perhaps a strike is the only way to get the union’s message across and convince UPS to adequately pay its employees.