United Parcel Service Inc. and its union will resume labor talks after negotiations had stalled earlier this month as the company seeks to head off a strike that could occur as early as Aug. 1.
(Bloomberg) — United Parcel Service Inc. and its union will resume labor talks after negotiations had stalled earlier this month as the company seeks to head off a strike that could occur as early as Aug. 1.
The talks will restart next week, although dates for those meetings haven’t been set yet, the International Brotherhood of Teamsters said in a statement. Talks broke down on July 5 after the Teamsters negotiators rejected UPS’ offer for wage increases for part-time workers.
“UPS bowed today to the overwhelming show of Teamster unity and reached out to the union to resume negotiations,” the union said in a statement.
The current five-year labor contract, which covers 340,000 UPS workers, expires on July 31, and if an agreement isn’t reached, Teamsters President Sean O’Brien said he would call a strike for Aug. 1. A walkout would disrupt the 19 million packages that UPS delivers a day in the US.
Read More: What’s at Stake As UPS Workers Weigh Strike
UPS said the two sides need to work quickly to conclude a fair deal that “provides certainty” for customers and employees.
“We are pleased to be back at the negotiating table next week to resolve the few remaining open issues,” UPS said in a statement. “We are prepared to increase our industry-leading pay and benefits.”
The restart of talks lowers the chances of a strike, but the negotiations are likely to “go down to the wire,” Bascome Majors, an analyst with Susquehanna International Group, wrote in a note. Majors expects talks to resume on July 24.
“We believe an August 1 strike at UPS remains possible but not yet probable,” Majors said. “And this afternoon’s official news that Teamsters-UPS negotiations restart next week after a 2.5-week break clears a path to ‘get to yes’ before the deadline.”
(Adds analyst comment in final two paragraphs.)
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