UPS workers have officially voted to authorize a strike if negotiations between their employer and the International Brotherhood of Teamsters don’t lead to a new contract before the July 31 deadline.

  • A work stoppage would be catastrophically impactful to the U.S. economy, including the promotional products industry.
  • UPS ships more than 24 million packages most days, and unionized Teamster labor is crucial in getting deliveries onto its trucks.

 The Deadline

Negotiations between UPS and the Teamsters officially began in May.

  • The five-year contract between the UPS and the Teamsters, which represents the rights of approximately 330,000 UPS employees, is set to expire on July 31.
  • PPAI Media covered the initial proposals in May, which focused largely on a National Master Agreement covering wages, healthcare and pensions, as well as supplemental agreements specific to each region.

Since then, a contract deemed suitable for the Teamsters has not materialized, and members voted overwhelmingly (97%) in favor of authorizing a strike if the deadline passes without a new contract.

“This vote shows that hundreds of thousands of Teamsters are united and determined to get the best contract in our history at UPS,” says Teamsters general president Sean O’Brien in a statement. “If this multibillion-dollar corporation fails to deliver on the contract that our hardworking members deserve, UPS will be striking itself.

“The strongest leverage our members have is their labor, and they are prepared to withhold it to ensure UPS acts accordingly.”

  • An official threat of a strike is not necessarily unusual amid such high-stakes negotiations, but it is a highly consequential possibility that would negatively affect shipping in many industries.

According to the New York Times, the sides have reached tentative agreements on a few specific issues since negotiations began, including a requirement for air conditioning in new trucks.

  • UPS released a statement claiming that the vote does not mean a strike is imminent.

The Promo Perspective

In May, John Janson, SanMar’s VP of global logistics, told PPAI Media he predicted the negotiations would likely go deep into July, so it should not be a shock that the matter is not yet resolved. Janson, who keeps in regular contact with UPS, expressed optimism that a contract would be doable for both sides.

“I can tell you that we have a high degree of confidence and hope that UPS and their labor force reach a win-win agreement,” Janson says.

Even a brief work stoppage would have enormous ramifications on the promo industry’s ability to ship products to customers.

Promo companies will have to study how this might affect them by exploring the possibility of other carriers and considering a transparent approach with customers if delays become a possibility.