BUSINESS + ECONOMY

UPS strike has been averted. What does this mean for workers?

Jul 27, 2023, 8:00 AM | Updated: 8:13 am

SALT LAKE CITY -- A deal has been reached and a large UPS worker strike has been averted. Since the...

FILE - United Parcel Service driver Hudson de Almeida steers through a neighborhood while delivering packages, Friday, June 30, 2023, in Haverhill, Mass. UPS has reached a contract agreement with its 340,000-person strong union Tuesday, July 25, averting a strike that had the potential to disrupt logistics nationwide for businesses and households alike. (AP Photo/Charles Krupa, File)
Credit: ASSOCIATED PRESS

(AP Photo/Charles Krupa, File)

SALT LAKE CITY — A deal has been reached and a large UPS worker strike has been averted. Since the rise of e-commerce and the pandemic, UPS has become very profitable.

The best part?

“It was a very, very good outcome,” said Seth Harris, a professor at Northeastern University. A Senior Fellow at the Burnes Center for Social Change where he runs the Initiative on Labor and Economic Justice.

“We saw a company that was willing to sit down, obey the law … and ultimately come to a deal with its union,” said Harris.

Businesses, consumers, and a large portion of the economy rely on UPS’s delivery infrastructure. 

Fortunately, these negotiations were successful and Harris said, “I think it’s a win-win relationship. And I think for consumers, it’s going to come out very well.”

What was negotiated between UPS and the employees?

“I think this is going to be a sustainable agreement,” said Harris

For workers, there won’t be any more forced overtime. Also, they’re getting air-conditioned trucks, which will make it much more comfortable in hot summer temperatures.

Additionally, they are getting rid of a two-tiered employment relationship where newer workers get lesser benefits and pay than longer-tenured employees.

And many part-time employees working full-time hours will now become full-time employees. Consequently giving those workers a meaningful pay raise and economic stability.

At the same time, UPS gets a more productive workforce. “They’ll have a workforce that’s going to hang around, a long-tenured workforce, which means increased productivity for them,” says Harris.

Along with productivity, Harris expects the company to spend less time and money recruiting. He said it’s all about working together and taking steps toward profitability. 

This agreement hopefully adds to the staying power of the company and improves the culture within UPS as the workers become more tenured.

Clayre Scott contributed.

Related: UPS reaches contract with 340,000 unionized workers, averting potentially calamitous strike

 

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UPS strike has been averted. What does this mean for workers?