What to expect if UPS drivers go on strike
- The last time there was a UPS strike was in 1997
- Consumers should expect delays when expecting packages
- A strike could have wider-reaching impacts as businesses also see delays
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(NewsNation) — Negotiations with UPS drivers and warehouse workers represented by the Teamsters Union have broken down, increasing the possibility of a strike at the end of the month.
Wages have been a central component of negotiations and the current contract is set to expire on July 31, which could have a big impact on consumers just as the economy heads into the busy fall season.
The current stalemate is, in some ways, fallout from the pandemic said Alan Amling, lecturer at the University of Tennessee who formerly worked in marketing strategy at UPS.
“During the pandemic, you had this historic rise in wages in the transportation and warehousing industry,” Amling said.
But UPS workers on union contracts didn’t see those wage gains, though they had previously been some of the best paid in the industry, according to Amling. UPS saw gains in profits and now that the previous contract is set to expire, workers are wanting to see wages go up.
The last time UPS workers had a strike was in 1997, when there were fewer players in the shipping industry. UPS still delivers 20 million packages every day, but there are more options for businesses needing to ship products and some of the biggest players, like Amazon, have built their own delivery networks.
Still, Amling said people can expect to see an impact if UPS drivers strike, because those other companies wouldn’t be able to absorb the volume of packages that would usually be delivered by UPS.
“Think about the early days of the pandemic, that’s what’s going to happen,” Amling said.
When COVID-19 lockdowns hit, a surge in online orders led to delayed packages, frustrating consumers who have become used to quick delivery when they shop online.
Shoppers may also find some products in short supply on store shelves, as companies that rely on UPS to deliver products or materials for manufacturing may also experience delays.
Still, Amling is optimistic that a deal can be reached, noting that both UPS and the Teamsters have new leadership which could be leading to some posturing as they try to prove themselves.
In the meantime, if a deal can’t be reached, customers should brace themselves for a return to the early days of 2020 and prepare themselves to wait a little longer for packages to arrive.
