According to CNN, if no agreement was reached before the expiration of the labor contract on August 1, more than 90% of shipping company union members voted in favor of the strike.
The question is, if UPS starts to provide delivery seven days a week, how will workers be compensated? The shipping giant is currently not delivering on Sunday and began offering delivery services only on a Saturday ago to meet the needs of e-commerce shoppers. UPS proposed a two-tier wage structure, which will allow part-time employees to pay $15 per hour to full-time status, while existing employees will continue to earn $36 per hour, or about $75,000 per year. An opposition group among UPS truck drivers believes that there is no need to implement a double wage system.
The impact of possible strikes on companies that rely on UPS to transport goods is not yet clear. If this happens, they may turn to logistics providers or face delayed delivery times. Freight UPS traffic accounts for approximately 6% of the U.S. gross domestic product. Of the more than 430,000 UPS employees, approximately 260,000 are union members.
UPS ships about 19 million items a day. It has the largest market share in the United States in the first three logistics providers at 36%. U.S. Postal Service accounts for 35%, while the Federation accounts for 17%.
Labor and management still have time to reach an agreement. A UPS spokesperson said the two parties reached an agreement on a wide range of other issues. The last time UPS encountered a strike, in 1997, 180000 workers went on strike for 16 days.
Near-season sellers have extended their warehousing time. If the UPS strikes start as expected, the seller must be prepared.