![]() “This is how it’s done!” Association of Flight Attendants-CWA President Sara Nelson said in a statement after the UPS deal was announced. United Auto Workers are considering a potential strike. Hollywood actors and screenwriters are picketing over pay issues. Unions have grown more active this summer thanks to several organized-labor pushes at major companies. Labor experts see the showdown as a demonstration of labor power at a time of low U.S. ”We’re grateful that this challenge, which would have had a price tag in the billions of dollars and a long runway for recovery, was avoided,” the group said in a statement. The Retail Industry Leaders Association, a national retail trade group that counts retailers including Best Buy, CVS Health and Kohl’s as members, called the tentative pact “an enormous relief to retailers, who have been navigating the possibility of a strike and the associated uncertainty for weeks.” If ratified, the deal could prevent major disruption just as retailers are in the throes of the back-to-school shopping season - the second largest sales period behind the winter holidays. Macy’s CEO Jeff Gennette told The Associated Press that the department store chain was considering its options and that its supply chain team was mapping out what a strike would look like and how it would affect shipping. He was also hearing about the negotiations from his UPS driver, who told him his deliveries were getting lighter as the July 31 deadline for a new contract neared. He hasn’t used FedEx, but he created an account with the company two weeks ago as chatter over a strike picked up. Joseph Debicella, a small business owner who sells bridesmaids’ gifts online, said his company ships roughly 50% of its orders through UPS. ![]() In recent weeks, large and small businesses worked to create contingency plans in the event of a strike. Meanwhile, customers who shop online could have faced higher shipping fees and longer waits. shipping companies do not have the combined capacity to handle all the packages that would come their way during a UPS work stoppage, and that prices of shipping and goods would inevitably increase. Logistics experts warned that the other U.S. economy more than $7 billion and triggered “significant and lasting harm” to the business and workers. The consulting firm Anderson Economic Group estimated a 10-day UPS strike could have cost the U.S. A walkout this time would have had much further-reaching implications, with millions of Americans now accustomed to online shopping and speedy delivery. According to UPS, that’s equivalent to about 6% of the nation’s gross domestic product.ĭuring the last breakdown in labor talks a quarter of a century ago, 185,000 UPS workers walked out for 15 days, crippling the company. parcel volume, according to the global shipping and logistics firm Pitney Bowes. The 24 million packages UPS ships daily amount to about a quarter of all U.S. Union leadership was upended two years ago with the election of O’Brien, a vocal critic of union president James Hoffa - son of the famed Teamsters firebrand - who signed off on that contract. Unionized workers said they wanted to right what they saw as a bad contract. Union members, angered by a contract they say union leadership forced on them five years ago, argued that they have shouldered the more than 140% profit growth at UPS as the pandemic increased delivery demand. The White House said Biden spoke via phone with Tomé and O’Brien and pointed to their agreement as evidence that collective bargaining works and offered his best wishes for a smooth ratification. Chamber of Commerce, labor leaders and President Joe Biden applauded the deal. ![]() “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,” Carol Tomé, UPS CEO, said in a written statement. Under the agreement, the company will create 7,500 full-time jobs and fill 22,500 open positions, allowing more part-timers to transition to full-time. UPS had also agreed to eliminate a lower-paid category of drivers who work shifts that include weekends, and convert them into regular full-time drivers.
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