UPS has abandoned negotiations, increasing the likelihood of a strike, according to Teamsters.

Teamsters Union Raises Prospect of Strike as UPS “Walks Away” from Contract Negotiations

The Teamsters union, representing approximately 340,000 workers at United Parcel Service (UPS), announced on Wednesday that the parcel delivery firm had abruptly ended negotiations for a new contract. This move has raised the possibility of a strike.

In a tweet, the Teamsters revealed that UPS had presented an offer, which was unanimously rejected by the union’s national negotiating committee. The union further stated that no further negotiations were scheduled.

After marathon negotiations, the Teamsters claimed that UPS refused to provide a last, best, and final offer, stating that the company had nothing more to give.

UPS has not yet responded to a request for comment from Reuters.

The current contract, which covers UPS full- and part-time employees in the United States involved in package delivery, truck loading, and package handling, is set to expire at midnight on July 31. UPS workers have already authorized a strike in the event that talks break down.

Both the union and company officials have expressed their desire to reach a deal to avoid a strike, which could jeopardize millions of daily deliveries, including crucial medications for cancer and other illnesses.

The only national strike at UPS occurred in 1997 and lasted for 15 days. It disrupted the supply of goods, cost the company $850 million, and drove some customers to competitors.

“UPS had a choice to make, and they have clearly chosen to go down the wrong road,” said Sean O’Brien, the general president of the Teamsters, which represents U.S. drivers, package handlers, and loaders at the company.

Last week, UPS made an improved offer, but O’Brien stated that it did not adequately reward workers who risked their lives to keep packages moving during the early days of the COVID-19 pandemic, which resulted in significant profits for UPS.

This development comes at a time when labor unions have gained increased bargaining power with companies due to labor shortages resulting from the pandemic.

(Reporting by Jahnavi Nidumolu, Abhijith Ganapavaram in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Shounak Dasgupta, Krishna Chandra Eluri and Maju Samuel)

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