Economy

UPS workers on the brink of a strike

Labor talks between UPS and its unionized drivers and warehouse workers fell apart Wednesday, with both sides accusing the other of abandoning negotiations.

Why it matters: A UPS strike could devastate the supply chain and disrupt the U.S. economy.

Driving the news: Teamsters, who represent over 340,000 UPS workers, said that UPS put up an “unacceptable offer” and was unwilling to negotiate.

• The union is trying to secure higher pay and more full-time jobs for employees.

• It also requested that surveillance cameras be removed from delivery trucks and that all employees be paid the same for doing the same job, regardless of tenure.

Yes, but: UPS maintains that its latest contract offer is “historic” and that its drivers are the “best-paid in the industry.”

The big picture: The company’s 24 million average daily deliveries make up about 25% of America’s total package volume, according to logistics firm Pitney Bowes.

• The last UPS worker strike in 1997 lasted for 15 days and cost the company $850 million. The company is much bigger now and many businesses rely on its speedy delivery to fuel the economy.

• Competitors - including FedEx and USPS - likely wouldn’t be able to pick up the slack if a strike happens.

What’s next? The workers’ current contract expires July 31 and the employees at the company have already authorized a work stoppage should the negotiations fail.

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