Dive Brief:
- UPS and the International Brotherhood of Teamsters will resume national contract negotiations next week, the company and union announced Wednesday.
- "We are pleased to be back at the negotiating table next week to resolve the few remaining open issues," UPS said in a statement. "We are prepared to increase our industry-leading pay and benefits, but need to work quickly to finalize a fair deal that provides certainty for our customers, our employees and businesses across the country."
- The Teamsters said in a news release that UPS reached out to the union to continue talks, adding that the two sides will soon set specific dates for negotiations. The union says it will strike if a tentative deal isn't reached by the July 31 expiration of their current contract.
Dive Insight:
The resumption of negotiations is welcome news for UPS shippers after an extended pause in talks. Differing proposals on part-time employee pay has held up progress since the morning of July 5.
“They have to make sure that our members get paid more than people coming off the street,” Teamsters General President Sean O’Brien said in a webinar on Sunday. “So we’re going to be addressing that if and when we get back to the table.”
With less than two weeks remaining before the current national contract expires, UPS is preparing contingency plans like training its managers to help deliver goods in the event of an Aug. 1 strike involving drivers, package handlers and other employees.
Rival FedEx, who has highlighted its available shipping capacity, and regional parcel carriers stand to gain from any work stoppage. But experts say these competitors don't have the space to absorb all the packages UPS handles daily, meaning delays for shippers without an alternative plan in place.
"FedEx and the U.S. Postal Service can pick up some of the slack, but you can't pick up all of the slack," said Abe Eshkenazi, CEO of the Association for Supply Chain Management, in an interview.
The Retail Industry Leaders Association warned in a news release Wednesday that the impact of a UPS strike would be felt throughout the entire U.S. economy, and it implored negotiators to remain at the table until a deal is reached.
"Retailers are preparing contingency plans, but even the most robust planning won’t shield retailers or consumers from the impact of shutting down a key component in the supply chain as we head full-steam into back-to-school and then holiday shopping seasons," the trade association said.
