Unless the ship turns around and all parties agree, UPS could go on strike on August 1st. That proposed ten-day strike could cause a $7 BILLION hit to our economy.

Some 340,000 UPS employees are inching toward a strike that appears increasingly likely, threatening the largest work stoppage in over half a century that could upend a part of the broader package delivery system that Americans have come to depend on.

On Wednesday, UPS and the Teamsters, the union representing UPS workers, announced that after a two-week impasse, they had agreed to resume negotiations next week with time running out before the Aug. 1 deadline.

Considering that it is July 21st, there’s not much time for all parties to pull their heads out of their collective asses and come to an agreement. 

I agree that actually providing air conditioning in the UPS delivery vehicles is long overdue in keeping the drivers …healthy and not suffering from heatstroke. I’ve known delivery drivers in the rural areas of the western U.S. They work long hours driving to remote rural farms and ranches through all sorts of weather, so ensuring the vehicles they drive have heat and A/C is the very least the company could do, and should’ve done long ago. 

Yet, this fight between UPS and the Teamster’s Union involves 340,000 employees who are drivers, pilots, package handlers, and the customers the company serves.

https://twitter.com/nathano235/status/1681724256357584896

And that, I believe is not being taken into consideration by the union folks who are supposedly representing their members and maybe? looking out for their customers? 

A 10-day UPS strike could cost the US economy over $7 billion, according to a new report.

Customers could face losses of a combined $4.6 billion, which would make the strike the costliest in a century.

UPS and the Teamsters union representing 340,000 UPS employees have until July 31 to negotiate a new contract.

UPS has had a strong presence in the rural areas for YEARS. In fact, in many cases, they’ve been the ones instead of Fed Ex or USPS who gets the deliveries done. Yes, Amazon has ramped up, but Amazon for the rural areas has and does heavily rely upon UPS and others to deliver the orders. 

But again, this strike, even if it is ONLY for ten days will have a huge economic impact upon businesses nation wide. 

This is big — UPS' 3,300 pilots say they will not fly if the company's Teamsters package drivers strike https://t.co/7WJAEmLiEW

— Rachel Premack (@rrpre) July 18, 2023

If the pilots don’t fly, the drivers don’t drive, and the package handlers walk off the job, then NO ONE gets their deliveries or returns handled in time. No. One. 

Again, this goes to the overall economic impact. If businesses can’t receive or ship good and services to/from their vendors and customers, then they are dead in the water. 

Case in point: Ammunition manufacturers. It’s federal law that the ammo manufacturers must ship only UPS ground with some exceptions that only involve significantly huge orders that require specialized freight handling. So this strike, that is supposedly only supposed to last ten days, will be a problem for the small and medium-sized ammo businesses. Amazon, by federal law, cannot fill the gap on shipments for these businesses. Nor can Fed Ex, USPS, or DHL.  

It isn’t just ammo manufacturers. It is many other small business owners and individuals who have been relying on Brown Company for their products, orders, and even medicine. 

Experts say a UPS strike would hit e-commerce deliveries first, creating delays similar to those experienced by consumers in the early days of the covid-19 pandemic. If the strike extends beyond a few weeks, business shipments, including critical medical supplies, could be disrupted. And a months-long strike could create backlogs that extend into the upcoming holiday season, logistics experts say.

Which also makes me think of pharmacies…particularly the rural pharmacies. What will be the impact upon them if UPS does go on strike on August 1st? What will be the impact upon the communities those rural pharmacies serve? Will the medical companies be able to pivot to Fed Ex, USPS (who is STILL notoriously unreliable), or DHL or?? When you look at the numbers, the shipments affected make up 28% of the packages delivered across the ENTIRE country. 

Therefore, if the efforts at the bargaining table crater, then UPS will go on strike on August 1st. And it is the U.S. consumers who will be left flailing in the wind while the union leaders make bank.

A key example involves the trucking company Yellow (who is also known as LTL). They are having serious problems, some of which has been brought on by the proxy war the Teamster’s Union is fighting. What’s in it for the Teamster leadership if that company goes belly up? What’s in it for them if UPS runs their strike past the ten day mark?

Believe me, I understand the issues of the wage concerns, delivery, and the healthcare issues that UPS workers have been dealing with. That said, are they truly confident that the Teamsters Union, with their very interesting history, is negotiating for them in good faith? 

Quite honestly, we have eleven days to figure out shipping alternatives. I’d brace for impact if the strike does happen and plan accordingly. 

Feature Photo Credit: UPS Truck picking up Amazon returns in 2021 via iStock, cropped and modified