![]() "We are aligned on several key issues," she said in April. UPS CEO Carol Tome has been predicting a deal will be reached without a strike. Both sides have too much to lose in a lengthy dispute. Logistics experts generally believe a prolonged strike with damaging implications to businesses and the economy will be averted. And then you get behind." Deal may be likely "That's when things really start to get bottlenecked. "If you get outside of three days, then you start going into the danger zone" in remote areas, he said. "Big retailers have contingency plans in place," said John Haber, the chief strategy officer at third-party logistics provider Transportation Insight Holding Company, who worked for more than a decade in UPS' corporate finance office.īusinesses and customers in rural areas would also be most affected by a longer strike. Small and medium-sized businesses lower in the pecking order than big-box chains would see the most delays from a lengthy strike, logistics experts say. Overall, UPS handled 18.7 million domestic packages a day on average in the first three months of this year. And its share of shipments is even greater than that number indicates, since many of the packages being delivered by the US Postal Service are moved by UPS. UPS delivers about a quarter of all US packages to their final destination, according to Pitney Bowes, a global shipping and logistics firm, and there is not enough capacity in the market to replace UPS. "From an economic perspective, we're going to have a very muted peak season."īusinesses have also had time to prepare for the possibility of a strike.įedEx and other carriers have encouraged shippers for months to switch away from UPS to avoid any delays from a strike. ![]() "If you look at the overall market, nobody is seeing a pickup anymore," Roberson said. UPS' revenue fell 6% in the first quarter compared to a year earlier and it said in April that it expects "volume to remain under pressure." In a worst-case scenario, a longer-term UPS strike could cause major disruptions to the US supply chain network. However, if the strike lasts longer than a week, there will be some empty shelves, higher prices, and slower package deliveries for customers, they say. How bad could it get? Logistics experts predict that a short UPS strike would not be as devastating as it was in 1997 because things have changed in the intervening quarter-century: There are more shipping alternatives, for example. The work stoppage would also kick off as shoppers head into the back-to-school season and retailers prepare for the peak holiday stretch later in the year. ![]() If a strike takes place, it would be the largest single-employer strike in US history. ![]() Now, more than 340,000 UPS workers represented by the Teamsters union are threatening to strike over pay, hours and working conditions if there is no agreement in contract talks between the company and the union. The 15-day strike slashed package deliveries, overwhelmed the US Postal Service and FedEx, and hurt businesses across the United States. ![]() A UPS strike by 185,000 workers 25 years ago brought the logistics giant's operations to a standstill. ![]()
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