By Abhijith Ganapavaram
(Reuters) -The Teamsters Union said on Wednesday United Parcel Service “walked away” from negotiations over a new contract, a claim the shipping giant denied, lobbing its own accusation that the union had stopped negotiating.
The two sides traded salvos in early morning statements as they attempt to come to an agreement to prevent a strike when the current contract, which covers some 340,000 workers, expires at the end of the month.
Shares of the parcel delivery company were down 2.3% in morning trading.
Workers of UPS have already authorized a strike should the talks break down. Such a labor action would be the first since 1997 for UPS workers, in a strike that lasted 15 days.
Both the union and company officials have said before that they wanted a deal finalized to prevent a strike, which could put millions of daily deliveries at risk.
After missing out on wage increases during the pandemic, unions are now pushing back on contract offers from companies grappling with labor shortages, seeking higher pay and better working conditions.
“The Teamsters have stopped negotiating despite UPS’s historic offer that builds on our industry-leading pay,” the company said, adding that the union should return to negotiations.
The union had earlier in the day said UPS made an offer that was unanimously rejected and that the company had “walked away from the bargaining table.”
“UPS had a choice to make, and they have clearly chosen to go down the wrong road,” said Sean O’Brien, general president at the Teamsters, which represents roughly 340,000 full- and part-time U.S. drivers, package handlers and loaders at the company.
The 1997 national strike had disrupted the supply of goods, cost the company $850 million and sent some customers to rivals.
If a strike happens, UPS may struggle to get back the volumes it loses to rival FedEx, said Satish Jindel, president of logistics consulting firm ShipMatrix, as both delivery firms are facing weak e-commerce demand.
“Now UPS handles about 20 million (packages) a day, and FedEx is handling 12 million. So they have capacity for three or four million easily without sweating. And they would love to keep it,” Jindel said.
UPS sweetened its offer last week, but O’Brien said it did not go far enough to reward workers who risked their lives to keep packages moving during the early days of the COVID-19 pandemic that fueled big profits for the company.
“Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy,” UPS said on Wednesday.
(Reporting by Jahnavi Nidumolu, Abhijith Ganapavaram, Shivansh Tiwary in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Maju Samuel and Arun Koyyur)
