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UPS strike might be the costliest in 100 years

Lots of of 1000’s of UPS drivers may go on strike by the top of the month, and the walkout might be the costliest one within the U.S. in not less than a century.

That’s in line with a brand new evaluation from the Anderson Financial Group, a Michigan-based suppose tank that makes a speciality of the financial affect of labor strikes. The report estimates that financial losses from a 10-day work stoppage may value greater than $7 billion.

“The results right here of this strike would attain each city in America in a matter of days,” Patrick Anderson, president of Anderson Financial Group, advised FOX Enterprise.

The $7 billion determine consists of UPS buyer losses of not less than $4 billion and misplaced direct wages of greater than $1 billion. It doesn’t consider strike pay, unemployment advantages, unemployment taxes, earnings taxes, authorities spending or settlement bonuses.

Negotiations between UPS and the Teamsters union stalled final week as the 2 sides stay at odds over the phrases of a brand new contract, elevating the chances of a strike at the start of August.

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The present contract, which covers some 340,000 UPS staff, expires on July 31. UPS staff already voted 97% in favor of strike authorization in mid-June; it could mark the most important strike in opposition to a single employer in U.S. historical past and the primary UPS teamsters walkout since 1997.

The primary level of competition between the 2 sides is increased pay, significantly for the corporate’s part-time staff. Below the present contract, pay for part-time workers begins at $15.50 an hour and features a pension, well being advantages and tuition reimbursement.

UPS has famous the minimal pay has elevated to $16.20 an hour in compliance with federal minimal wage necessities for presidency contractors, and argued that the common part-time pay quantities to about $20 an hour.

United Parcel Providers staff stroll a “observe picket line” on July 7, 2023, within the Queens borough of New York Metropolis, forward of a doable UPS strike. (Picture by TIMOTHY A. CLARY/AFP through Getty Photographs / Getty Photographs)

Ought to the united statesworkers stroll out, it may imply package deal delays for customers and small companies throughout the nation, together with Amazon orders, the supply of crucial medical provides and digital elements wanted for day-to-day work.

VIDEO: Teamsters president suggests UPS holding off on releasing earnings in hopes of reaching union deal

In 2021, UPS commanded about 37% of the parcel supply market by income, adopted by FedEx at 33%,the U.S. Postal Service at 17% and Amazon Logistics at 12%, in line with knowledge from the Pitney Bowes Parcel Delivery Index.

The interruption to work would set off near-immediate misplaced gross sales and misplaced wages, together with “important and lasting hurt for small companies, family staff, sole practitioners, and on-line retailers throughout the nation,” Anderson mentioned.

UPS has referred to as on Teamster negotiators to return to the bargaining desk, whereas union officers insist the corporate must go additional in its efforts to make a deal.