There are talks about UPS Teamsters Union members going on strike if a new contract is not agreed upon.
Many fear the strike will prompt delays in vital deliveries such as prescriptions and items to keep businesses running.
If UPS Teamsters union members go on strike, it will impact on Amazon deliveries, although the extent of the effect would depend on various factors.
Around 60% of the 8 billion parcels shipped by Amazon last year were handled by its logistics network. The remaining 40% were shipped by other carriers, with 28% by the United States Postal Service (USPS) and 8% by UPS. If UPS workers go on strike, the company's ability to handle its usual daily volume of nearly 25 million packages would be severely impacted. This could also result in slower delivery times for competitors like FedEx and the postal service if they face increased demand.
Here's how Amazon deliveries could be affected if UPS workers go on strike:
1. Reduction in UPS deliveries: If UPS workers halt work, the volume of packages UPS can handle would be significantly reduced. As a result, Amazon's utilization of UPS for deliveries would be limited, affecting the portion of packages shipped through UPS.
2. Increased reliance on other carriers: To mitigate the impact of a UPS strike, Amazon would likely increase its reliance on alternative carriers, such as its own logistics network, regional delivery partners, and other national carriers like FedEx or the United States Postal Service (USPS).
3. Longer delivery times in rural areas: Amazon shoppers in rural areas, who generally rely more on UPS or the USPS for deliveries, may experience longer delivery times if those carriers face increased demand due to the absence of UPS services. The availability and capacity of alternative carriers in specific regions would determine the extent of the delay.
4. Delays with third-party sellers: Third-party sellers on Amazon may also encounter delays if they primarily rely on UPS for their shipping needs. Sellers who utilize other carriers or fulfillment options within Amazon's network might experience fewer disruptions.
5. Enhanced reliance on Amazon's logistics network: As a significant portion of Amazon's deliveries are already handled by its logistics network, the company's ability to manage its own deliveries would likely mitigate the impact of a UPS strike. Amazon's extensive network of warehouses, distribution centers, and delivery vehicles would help maintain a level of service for its customers but will not be able to handle the entire workload.
Ultimately, the specific outcome would depend on the duration and scale of the UPS strike, as well as the contingency plans and alternative arrangements that Amazon has in place to ensure efficient delivery operations. A short strike may cause some delays but the longer the strike lasts, the more devastating the effects will be.
Remember, UPS is a National Chain. Not only will it affect deliveries locally, but worldwide.
More about the Looming Strike
"We have 340,000 Teamsters that are united, ready to fight and be rewarded for their hard work," said Sean O'Brien, the general president of the International Brotherhood of Teamsters.
Negotiations between UPS and the Teamsters Union for the country's largest private sector contract have reached an impasse, with the deadline for a deal passing on July 5. The two parties remain deadlocked, raising concerns about the potential of the strike happening.
Teamsters members, including O'Brien, have been engaging in practice picketing across the United States, including in Bethlehem.
The union argues that UPS doubled its profits to $100 billion during the pandemic, benefiting upper management and stockholders, while employees faced increased workloads, longer hours, and threats to job security that put their health and safety at risk.
UPS, on the other hand, points out that delivery drivers earn an average of $95,000 per year, while tractor-trailer drivers earn $112,000 per year. However, O'Brien contends that these figures reflect a demanding work schedule with little work-life balance and forced work on days off.
A major point of contention in the negotiations is the treatment of part-time employees. The union claims that part-time workers, including single mothers and those working multiple jobs, are struggling to make a living on poverty wages. UPS argues that it provides part-time employees with solid health coverage, a pension, and education assistance.
Anderson Economic Group estimates that a strike could be one of the costliest in a century, potentially costing the U.S. economy $7 billion during a ten-day work stoppage. Such a strike could also disrupt millions of daily deliveries, including life-saving prescriptions, and impact supply chains, potentially leading to higher inflation.
The last strike by UPS Teamsters took place in 1997 and lasted 15 days. O'Brien warns that a strike could have serious consequences, including putting the country into a recession. UPS has taken measures to minimize disruptions for customers and deliveries in case the stalemate continues, including additional training for certain employees.
While the Teamsters Union does not want the Biden Administration to intervene, Transportation Secretary Pete Buttigieg has stated that the administration is monitoring the contract talks. The union's pilot division has also indicated that UPS pilots will not fly if other workers go on strike, effectively shutting down UPS' global air operations.
The outcome of the negotiations could have far-reaching effects, not only for UPS and the Teamsters but also for other competitors in the industry. The Teamsters' recent launch of its Amazon division aims to encourage more Amazon workers to unionize, and a strong contract with UPS could potentially inspire workers at companies like Amazon and FedEx to pursue unionization. The situation remains uncertain, and regardless of the outcome before August 1, the impacts are expected to be significant.