Teamsters blame others individually for dancing away from consensus conferences

July 6, 2023: On Wednesday, the Teamsters Union stated that the United Parcel Service “stepped away” from negotiations regarding a recent contract, a claim the shipping firm refused, throwing its charge that the union had stopped negotiating.

The two sides traded salvos in before morning statements as they attempted to agree to stop a strike when the current contract, which covers some 340,000 workers, parts at the end of the month.

Shares of the parcel delivery business were down 2.3% in morning trading.

Workers of UPS have already approved a strike should the talks break down. Such a labor action would be the first since 1997 for UPS workers, in a strike that lasted 15 days.

The union and company officials have said they wanted a deal finalized to avert a strike, which could put millions of daily deliveries at risk.

After missing out on wage increases during the pandemic, unions are now pushing back on contract offers from companies grappling with labor shortages, pursuing higher pay and better working conditions.

“The Teamsters have stopped dealing despite UPS’s historic offer that builds on our industry-leading pay,” the company said, adding that the union should return to negotiations.

Earlier in the day, the union said UPS made a unanimously rejected offer and that the group had “walked away from the bargaining table.”

“UPS had a choice to make, and they have chosen to go down the wrong road,” expressed Sean O’Brien, general president of the Teamsters, representing roughly 340,000 full- and part-time U.S. drivers, package handlers, and loaders at the company.

The 1997 national strike disrupted the supply of goods, cost the company $850 million, and sent some customers to rivals.

If a strike occurs, UPS may work to regain the volumes it loses to rival FedEx, said Satish Jindel, president of logistics consulting firm ShipMatrix, as both delivery companies are facing weak e-commerce demand.

“Now UPS handles nearly 20 million daily, and FedEx handles 12 million. So, they can easily run three or four million without perspiring. And they would love to keep it,” Jindel said.