Posted on 07/07/2023 4:50:13 PM PDT by nickcarraway
The carrier and Teamsters union leaders have halted labor talks despite coming to terms on most major issues, leading businesses that rely on UPS to prepare for potential disruptions next month.
With a little more than three weeks until UPS workers’ threatened strike date arrives, businesses that rely on the nation’s largest package carrier have been considering their plan Bs.
Teamsters leaders representing 340,000 UPS employees have already announced tentative deals toward a new five-year labor contract, addressing air conditioning in vehicles, workforce structure and more. But an overall agreement has yet to materialize, and the company and union have been trading barbs since negotiations broke down after the long July Fourth weekend.
Part-time employees’ pay remains a sticking point, Teamsters President Sean O’Brien told MSNBC on Friday morning, even though, he said, “We’ve come to agreement on most of the terms.”
As the clock ticks down to Aug. 1 — the date when unionized workers have threatened to walk out after voting last month to authorize a strike — some UPS customers are planning for potential disruptions.
“I feel sad for the UPS workers because I want them to get paid and they do a good job … but it’s definitely scary,” said Heather DeVal, the owner of an apparel and home goods seller called Sunshine Soul in Annapolis, Maryland. She uses the carrier for about 40% of her total shipments, but for almost all of her wholesale orders, which brought in around 70% of her revenue last year.
If UPS workers strike next month, DeVal said she’d lean more on the U.S. Postal Service and FedEx but finds UPS the most convenient and reliable option in her area. “For wholesale alone, the shipping cost would probably be double,” she said.
Other business owners voiced less urgency to line up alternatives.
Toybox, an Oakland, California, company that makes devices for 3D-printing toys, relies on UPS “a lot,” said COO Malcolm Bird, but he isn’t concerned about finding another carrier.
“We’re going to be able to ship, it’s just we’re going to have to use somebody else,” he said.
Left Coast Original, a laser engraving company in Largo, Florida, uses UPS for 99% of its packages — ranging from personalized charcuterie boards to monogrammed wallets — which totaled around 70,000 last year, said founder Aaron Bornfleth. He’s waiting to see how the labor talks unfold in the coming weeks before diverting packages to another carrier.
Even if we were to be proactive about putting together a mitigation plan to switch over to FedEx, everyone else would be doing that, too.
“We’ll just have to jump from one lily pad to another as the situation develops,” he said. “Even if we were to be proactive about putting together a mitigation plan to switch over to FedEx, everyone else would be doing that, too.”
A FedEx spokesperson said the company was working to accommodate customers looking to move their shipping to the carrier but pointed to a statement released Thursday urging prospective newcomers to act fast. The spokesperson warned that, like other carriers, FedEx faces limits to how much additional volume it can handle in case of a UPS strike.
For businesses in more remote areas, securing a fallback might not even be a possibility.
Recommended
SLAUGHTERHOUSE SERIES U.S. fines meat company that used two minors to run hazardous machinery at Minnesota factory
ECONOMY Employment among people with disabilities hits post-pandemic high Jaclyn Wilson, the co-owner of Flying Diamond Beef in western Nebraska, ships all her company’s perishable packages through UPS. When she does ship by air, it requires a five-hour drive to Denver.
“In our case [a prolonged strike] would shut us down because we aren’t really able to use any other provider out here,” she said. “We’d only be able to do deliveries by person and not be able to ship until it gets figured out.”
UPS union moves closer to strike as talks collapse JULY 7, 202305:28 No date has been set for UPS and the Teamsters to resume negotiations, and few details have emerged publicly about the remaining issues of contention, which O’Brien has characterized as economic.
“It could be that this is theater, and both sides are trying to get the last possible advantage to squeeze out the last available dollar” before unveiling a contract deal, said Seth Harris, a law and policy professor at Northeastern University, who served as President Joe Biden’s top labor adviser until last year. “Or it could be that they’re at a genuine impasse where there’s no overlap in their positions, and they’re trying to assess what to do.”
While UPS has consistently emphasized its Aug. 1 strike deadline, some labor experts note that the union can extend its existing contract beyond the July 31 expiration date at its discretion. That could give rank-and-file workers time to vote on a new deal should one come together in the final days of July or even afterward.
It could be that this is theater, and both sides are trying to get the last possible advantage to squeeze out the last available dollar.
PROF. SETH HARRIS, NORTHEASTERN UNIVERSITY
Asked about that possibility, a union spokesperson said, “The previous Teamsters administration gave extensions and concessions, but those days are over and UPS needs to face this reality.”
A work stoppage at UPS would be the largest single-employer strike in U.S. history. Logistics experts say that even several days of halted UPS deliveries would likely disrupt the flow of more packages than top rivals such as FedEx or USPS could absorb, threatening to upend the back-to-school shopping season.
Even so, retailers have been devising backup plans for “quite some time,” said Jess Dankert, vice president for supply chain at the Retail Industry Leaders Association, a trade group representing major brands such as Walmart and Target.
Many companies had already diversified their delivery providers and added smaller, more regional carriers during the pandemic surge in e-commerce, said Dankert, adding that retail supply chains “are built to be flexible and resilient.”
“In the worst-case scenario of a strike, there certainly would be disruptions, but hopefully, those contingency plans will mitigate any of the more significant impacts,” she said.
After the latest collapse in talks, UPS touted its “industry-leading pay” in a statement this week, saying it was proud of its offer and that the Teamsters “should return to the table.” Union representatives criticized the company as signaling that it “had nothing more to give” and reiterated that employees wouldn’t work beyond their current contract’s expiration.
There was a UPS strike in the mid ‘90s. Christmas season if I recall. It was an inconvenience, but FedEx, DHL and USPS picked up the slack.
Place package on catapult sling and fire away.
Teamsters? Are they still a thing?
FedEx and USPS are brutal to work with, as are the vast majority of common carriers.
UPS is the only truly professional and reliable delivery/ pick-up service for businesses.
Almost all big negotiations are resolved just before or just after the scheduled strike date.
Union has to show their members they are really fighting for them and the company has to show the shareholders they are being tough negotiators.
It’s all for show. Both sides of negotiators already know how it is going to end, so no one should get stressed out about it.
was no a/c in hubs years ago, package handlers would occasionally pass out. I used to run a clipboard for audits, even that was oppressive in summer but you got through it.
drivers for decades did it without a/c. sure it’s nice but not necessary. I am sure those vehicles get crappy gas milage and with a/c and then opening and closing doors frequently = equals a lot of expense.
and climate change believers will complain about the added harm to environment. these teamsters are mostly dem voting anyway if they follow what their union leaders tell them. maybe they are going electric vehicle? even more expense.
The dreaded FedEx.
Yes, unfortunately. They are a huge part of the Democrat Party corruption machine.
Have had such bad luck with UPS on many fronts. I know it’s an unpopular opinion here, but USPS is the best.
I don’t understand the air conditioning demand. They allow the workers to wear shorts and the windows and doors are all open so they definitely get a nice breeze.
a/c in the trucks is almost impossible. large metal cans, engines off at stops.. the system would never work.
they would have to use a system like semi sleepers have. It might actually be cheaper to install APU (auxiliary power units) than replace the fleet anyways.
APUs have small engines (gas or diesel) that run an a/c system, generator and heat coolant.
large brown metal box in the sun...
it does get hot as hell in there.
FedEx is not unionized.
I can’t use ups where I am. They really hammer packages in my area. They may be ok/good in other areas, but not mine.
You are out of your mind. USPS is the worst hands down no contest period.
I worked for a utility company that uses the same basic vehicle as UPS. They had A/C. Constantly quit, only an outside contractor an hour away could fix it and it really was worthless. Truck was sweltering with A/C on in it. Just too big an area for one little system to handle. Plus absolutely no insulation in the cab area. I used to take them up for repair, and just left the doors open driving, that was tolerable...just make sure you wear your seat belt....
I worked for a short time for UPS in 1977. They paid me $17.60/hour. Most jobs then paid 3 or 4 dollars per hour. They must be getting 50 now. I was 19 then and quit because I didn’t like the military like environment. I sure enjoyed the pay even the 100 degree summer in Norfolk Va.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.