Breaking News Alert: Teamsters Potential Strikes/Actions

Hard Deck Logistics is following that the Teamsters Union contract with UPS is set to expire on Aug 1st and there is mounting pressure to reach an agreement as the negotiations are coming down to the wire. 

 

If an agreement is not reached, a strike may be imminent impacting more than 325,000-340,000 union workers at UPS. Experts cite this as one of the costliest potential strikes in history. Multiple sources report that the White House is confident a deal will be reached before AUG 1 (the earliest date that strikes could occur). UPS pilots have also reportedly stated they would not cross picket lines and therefore would not fly if the Teamsters strike. The big hurdle is pay for part-time workers and a walkout could really rattle the US economy. UPS also utilizes nationwide rail lines. Additionally, major shippers, U.S. households, etc., so many use UPS regularly so certainly this large of a market shift could have widespread market impact. 

 

Additionally, a separate noteworthy issue is developing with the Teamsters in the trucking world. After the US District Court for Kansas denied Friday trucking company “Yellow'" request for an injunction that would block its Teamsters members from kicking off a work stoppage that could have started as early as today Monday, July 24, at least temporarily the crisis has been averted as the worker's health care and pension fund Central States agreed to extend health care benefits covering two Yellow operating companies YRC Freight and Holland. The next two weeks to 30 days will be telling as to if this situation is resolved more long term as there are terms in place. These companies often are also used by shippers as part of the import last mile or export first-mile multimodal transportation strategy as shippers deliver to and from transload sites, rail, etc. 

 

There are a number of other Teamsters actions currently happening, including with Republic Services (a ready-to-strike rally), a strike at a Minnesota paper manufacturer, etc. 

 

Hard Deck Logistics continues to follow developments on these stories.