The Retail Industry Leaders Association (RILA) urged a quick resolution of the stalled contract negotiations between the United Parcel Service (UPS) and its 340,000 workers represented by the International Brotherhood of Teamsters, describing a potential UPS strike as “kryptonite for supply chains.”
On July 20, UPS said it would return to the bargaining table with a better offer for its roughly 340,000 Teamsters-represented U.S. workers before their contract expired on July 31.
Talks between UPS and its U.S. workers broke down on July 5. UPS workers have threatened to strike against the delivery service if negotiations between the Teamsters and the company fail to produce a new five-year labor contract.
RILA said, “As leaders within the U.S. economy, we are growing increasingly concerned with the stalled contract negotiations between UPS and the Teamsters. Reliable and quick shipping—ensuring the timely delivery of essential goods such as groceries, medicine, and school supplies to customers’ doorsteps—is the hallmark of our industry, and the UPS fleet plays a critical role in that operation. Uncertainty is like kryptonite for supply chains.
“While retailers maintain flexible and resilient supply chains, adept at navigating challenges to deliver for consumers, the impact of a UPS worker strike would undoubtedly be felt throughout the economy, to the tune of billions of dollars. Retailers are preparing contingency plans, but even the most robust planning won’t shield retailers or consumers from the impact of shutting down a key component in the supply chain as we head full-steam into back-to-school and then holiday shopping seasons.
“The impact of a supply chain disruption is no longer an academic exercise. We need only look in our rear-view mirror to see the economic and consumer harm that resulted from supply chain bottlenecks and delays that rippled throughout the economy post-pandemic. Having worked through these challenges methodically over the past two years, retailers are loathe to stress-test contingency plans again.
“We remain optimistic that, with the nationwide implications in mind, a resolution can be reached soon. We urge all negotiating parties to remain at the table until a deal is reached that keeps this vital supply chain link operating at full capacity.”
Photo courtesy Reuters
