UPS reached a contract agreement with its 340,000-person strong union Tuesday, averting a strike that had the potential to disrupt logistics nationwide for businesses and households alike.
UPS lanyards are seen before a rally, Friday, July 21, 2023, in Atlanta, as a national strike deadline nears.
The two sides had already agreed tentatively to make Martin Luther King Jr. Day a full holiday, and ending forced overtime on drivers’ days off. Tentative agreements on safety issues had also been reached, including equipping more trucks with air conditioning. Union members, angered by a contract they say was forced on them five years ago by union leadership, clashed with UPS over pay as profits for the delivery company soared in recent years. Union leadership was upended last year with the election of Sean O’Brien, a vocal critic of the union president who signed off on that contract, James Hoffa, the son of the famous Teamsters firebrand.
The last breakdown in labor talks a quarter century ago led to a 15-day walkout by 185,000 UPS workers that crippled the company. A walkout would have had far-reaching implications this time around with millions of Americans now accustomed to online shopping and speedy delivery. Joseph Debicella, a small business owner who runs an online site that sells bridesmaid gifts, said his company ships roughly 50% of its orders through UPS. He hasn’t used FedEx before, but created an account with the company two weeks ago as chatter over a strike picked up. He was also hearing about the negotiations from his UPS driver, who told him his deliveries were getting lighter as the July 31 deadline for a new contract neared.
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