It will be implemented on August 1st, 340,000 people will go on strike!

It will be implemented on August 1st, and UPS will face a strike of 340,000 people!

According to foreign media reports, the conflict between express delivery giant UPS and truck drivers over the new contract has intensified, and the union president has made the most serious statement to date.

It is reported that the two sides reached a preliminary agreement on 55 non-economic issues in the early stage of the incident, but were stuck on the issue of raising wages for truck workers.

The labor contract between the two parties expires on July 31 this year. If no settlement can be reached before then, it means that 340,000 UPS employees will go on strike on August 1.

Teamsters President Sean O'Brien said in a statement:

Sean O'Brien

“This multi-billion dollar company could give its workers more benefits, they just don’t want to.”

"If there is no contract in hand, a strike will be held on August 1st"

“UPS had to make a choice, and they clearly chose to go the wrong way.”

The truck drivers also conducted a rehearsal for a strike march, and the media continued to report on the latest developments, causing the incident to ferment more and more . A White House spokesman said that the Biden administration has been in contact with UPS and the union to persuade the two sides to reach a settlement.

They reached a deal with UPS that eliminated a two-tier pay system that the union said underpaid part-time drivers.

The two sides have different opinions on salary. According to the description of the truck driver, the driver is responsible for his own safety while receiving a salary that is not commensurate with the level of work. However, UPS claims that the annual income of a full-time delivery driver is $95,000, and the annual income of a trailer driver is usually in the six figures, so the salary is completely reasonable. In this way, the two sides have been arguing over the salary issue, resulting in a stalemate here.

FedEx profited from UPS strike

When UPS was facing a large-scale strike, FedEx, as UPS's long-time competitor, quickly smelled a business opportunity.

In this strike, UPS outsourced part of its business to FedEx. Once the strike begins, FedEx will face an increase in business volume. Through this opportunity, they are likely to expand their business scale and increase revenue.

UPS is facing difficult headwinds, and FedEx said: "Amid industry disruption, our first priority is protecting our existing customers."

UPS delivers more than 20 million packages in 220 countries around the world every day. The data is huge. Once a strike occurs, UPS logistics will inevitably be interrupted.

UPS said it has agreed to a two-tier wage rate to be implemented in the current five-year contract, helping UPS expand its delivery service from five days a week to six days a week. Those currently on the lower wage level will be converted to a normal full-time wage level, working Tuesday through Saturday.

But truck drivers are not happy with the concessions, with the union pointing to UPS’s record profits in recent years, which have nearly doubled over the five-year term of the current contract, from $6.3 billion in adjusted net income in 2018 to $11.3 billion last year.

The impact of a strike itself is huge. Not only will it cause serious damage to the company's reputation, but it will also cause the outside world to make negative comments about the company.

Secondly, if UPS refuses to accept the goods, it will largely lose its existing customers and have them switch to its own competing companies, which will have an adverse impact on UPS's market share and business development.

What is serious is that customers who have relied on UPS for a long time will face the risk of logistics paralysis .

Impact of the UPS strike on sellers

If a strike occurs, it will have a serious negative impact on small and medium-sized sellers. After all, many Amazon FBA sellers rely on UPS for package delivery.

For many sellers who have already delivered goods, the strike may cause logistics delays, and sellers will receive negative reviews from users, affecting store data and sales.

Many large companies have begun shifting products to FedEx and other carriers in preparation for a possible UPS strike.

However, for some small companies, changing logistics providers may bring unaffordable costs, excessive investment and greatly increased risks, putting many sellers in trouble.