One of the top parcel industry consultants have mentioned today. how he thinks there’s a likelihood for a contract agreement to be made between UPS and the Teamsters union. And likely, the chances are that this big old strike that was going to occur will be extinguished so long as the agreement is met no later than June 30th.
It’s pretty crazy to imagine any sort of problem to arise between UPS and the Teamsters.
The reason why is because UPS and the Teamsters are tired of fighting.
UPS has to do everything in their power to ship beyond 20 million parcels a day, all while the walkout might likely be too distracting to the nation’s very own delivery infrastructure. In which case, the industry uses multiple nonunion carriers like FedEx Ground. Well-known as the ground-delivery unit, which also offers the regional delivery carriers and retailers the chance to operating their own delivery networks.
UPS and Teamsters are pretty confident in their perspectives which are very similar to each other. The U.S. Postal Service uses about half of the 60 million daily parcel-delivery capacity all dependent on the ShipMatrix data.
A further factor that weighs in steady versus a strike as the summer months aren’t particularly peak delivery periods. All while there are volumes are flattened in general with demand weakness, with easier use of UPS shippers with other options at such a specific time of the year.
Of course, no one is saying the shippers are waiting way too long for alternate capacity.
Plenty of analysts think that many in the current market environment. It’s established from early on that the stakes are very high while there’s plenty for the Teamsters are lost.
It’s likely that the Teamsters union is going to receive a huge a wage bump that has shown plenty of change with wage inflation since the modern agreement has been reached in 2018.
Optimism is only as strong as the unions that are made between the shipping company and the unions. If you can’t feel good about who you work with, than why would you work with them? For money alone? Don’t work with anyone you can’t immediately see as being a friend if not colleague. How important are the bonds between shippers to let that happen?