UPS Strike Averted
You may remember earlier how we wrote about a potential United Parcel Service strike from the International Brotherhood of Teamsters (IBT), and event that would almost be twice as cataclysmic for the American supply chain as the previous strike in 1997. Well, consumers can now breathe easier, as the two parties have come to an agreement.
Details
UPS and IBT have reached a tentative five-year agreement that they announced to the public on August 1st, and not a second too soon as the previous contract expired at the end of July.
While the new agreement must be voted upon by the union members affected by it, Teamsters General President Sean M. O’Brien says that he is satisfied with the agreement that was reached.
“UPS has put $30 billion in new money on the table as a direct result of these negotiations. We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession,” he says. “This contract sets a new standard in the labor movement and raises the bar for all workers.”
UPS feels the same way.
“Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees and to UPS and our customers,” said Carol Tomé, UPS CEO. “This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers and keep our business strong.”
Of course, this means that the smaller parcel delivery companies we mentioned in our previous article getting a chance to rise up in the ranks did not get the chance. UPS and its primary competitor, FedEx, still remain the kings of parcel delivery.
Conclusion
If the vote to approve the agreement fails, or if it passes and then another agreement cannot be reached five years later, the supply chain may find itself in the same situation all over again. Until then, the IBT-represented UPS drivers can enjoy having their wages rise by $7.50 per hour over the next five years.
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