Business & Economy

Businesses, Consumers Should Prep Contingency Plan for Potential UPS Strike

Thursday, June 7, 2018, By Daryl Lovell

The United Parcel Service could be facing one of its largest strikes in decades. The International Brotherhood of Teamsters, which covers roughly 260,000 UPS workers, reports the overwhelming majority of UPS members have given the green light to strike if bargaining issues aren’t resolved. The current contract expires on July 31.

Patrick Penfield is an assistant professor of supply chain practice at Syracuse University’s Whitman School of Management.

Penfield says:

“If union workers at United Parcel Service were to go on strike, it will impact the economy. This would be a major disruption for companies, especially online businesses that depend on UPS for their small package deliveries.

“If the strike happens, UPS will try to manage their operations with management and non-union employees but it will not be enough to service their customers. If you are reliant on UPS for your shipping needs you need to have a contingency plan in place for the strike date.

“The company that stands to gain the most from a UPS strike is Fedex, which is a non-union company. I could see Fedex telling UPS customers that they will accept their shipping business during the strike as long as they stay with the company after the strike (maybe for a year).

“Unfortunately, a strike will adversely impact UPS’s 2018 profits.”

 

 

 

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Daryl Lovell
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