Another Supply Chain Disruption Avoided as UPS and Teamsters Reach Labor Agreement

The United Parcel Service (UPS) moves an estimated 20 million packages a day, worth an estimated $3.8 billion or almost 6% of U.S. GDP. The current UPS labor agreement expires July 31st and negotiations between the International Brotherhood of Teamsters and UPS resolved most of the issues but stalled over starting wage for part-time workers. SFIA pressed President Biden to intervene in the labor talks to ensure there is not an unnecessary disruption in supply chains. On July 25th, The Teamsters and UPS reached a tentative agreement on a new labor contract. The Teamsters will remain on the job through the ratification process, avoiding a potential strike.

The Teamsters viewed the UPS labor talks to highlight their ability to represent workers and get better labor deals as they look to expand into companies like Amazon. Teamsters President Sean O’Brien stated the UPS labor talks are “the largest collective bargaining agreement in any private sector union,” and the contract could “set the tone and set the standard high for labor — not just the Teamsters but the entire labor movement.”

Government involvement has helped avoid domestic disruptions in supply chains. The President and Labor Secretary were instrumental in resolving rail and west coast port strikes. SFIA appreciates the Administration’s engagement in UPS negotiations to secure the new labor agreement and avoid unnecessary disruptions in supply chains.

Click here to view the letter.

For more information, please contact Bill Sells, SVP Government Relations & Public Affairs, at [email protected].

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