UPS strike draws closer as negotiations between company and Teamsters Union falter

A UPS strike could be less than a month away, after negotiations with the International Brotherhood of Teamsters Union broke down Wednesday morning. 

The parties failed to agree on a new contract for the roughly 340,000 union members at UPS, with each side blaming the other, despite negotiations starting off positively, according to The Hill.

“Around 4 a.m., UPS walked away from the bargaining table after presenting an unacceptable offer to the Teamsters that did not address members’ needs. The UPS Teamsters National Negotiating Committee unanimously rejected the package,” the Teamsters said in a statement.

At the end of June, the union voted to authorize a strike if a deal is not reached with UPS before their current contract expires on July 31. The Teamsters and UPS are so far unable to agree on wages, compensation and benefits.

“Our ability to control labor costs has in the past been, and is expected to continue to be, subject to numerous factors, including turnover, training costs, regulatory changes, market pressures, inflation, unemployment levels and healthcare and other benefit costs,” UPS wrote in its 2022 end-of-year filing with the Securities and Exchange Commission.

The Teamsters general president Sean M. O’Brien argues that UPS has enough money to increase wages, saying “This multibillion-dollar corporation has plenty to give American workers — they just don’t want to.”

UPS earned $11.5 billion in net income in 2022 on $100.34 billion in revenues, as profits surpassed fourth-quarter expectations. 

The Teamsters reached a deal with UPS on Saturday that guaranteed better working conditions, which include ending forced overtime, acknowledging Martin Luther King Jr. Day as a full holiday and ending the company's two-tiered wage system, according to The Hill.

UPS says they are willing to continue negotiating with the Teamsters, saying in a statement, “The Teamsters should return to the table to finalize this deal. We have not walked away, and the union has a responsibility to remain at the table.”

“Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy,” UPS said.