A UPS strike may be on the way as the company negotiates with union members.
United Parcel Service, Inc. (NYSE:UPS) is currently in negotiations with union members about a possible change to work hours. Specifically, the company is looking to expand its delivery service to Sundays.
The heart of the possible UPS strike has to do with the pay for company employees. The typical full-time employee at UPS earns $36 an hour. Part-time employees are paid $15 an hour. UPS is seeking to make part-time employees full time to handle weekend deliveries. However, it wants to keep their pay at $15 an hour.
It UPS is unable to avoid the strike, it could have a major effect on the U.S. economy. The company currently employs 260,000 members of the Teamsters union. If these employs were to hold a UPS strike, it could hurt the online retail market.
Obviously, UPS wants to avoid such an outcome, but this wouldn’t be the first time its dealt with such a threat. There was another UPS strike back in 1997 that included 180,000 union employees. That was the largest strike the company has ever dealt with, reports CNNMoney.
The International Brotherhood of Teamsters has already given its members to go ahead for the strike. 93% of members were in favor of approving the UPS strike. The union hopes that this action will give its members additional leverage when negotiating with the delivery company for a new contract. The current contract will expire at the end of July.
As of this writing, William White did not hold a position in any of the aforementioned securities.