UPS strike is very likely! There is no better reminder to businesses than this to keep options OPEN.
Negotiations: The Teamsters are looking for higher pay and eliminating what they call two tier wages, where newer workers are paid less than older employees for the same job; Removal of surveillance cameras in their delivery trucks and more Full-Time jobs.
History: If a contract is not secured by July 31, 2023, the walkout will be the biggest U.S. Labor walk out since1950. UPS last went on strike back in 1997 in a 15-Day walkout that crippled the company and ended in a win for the union.
Progress?: On June 19st, 2023 a solid WIN for the Teamsters occurred when drivers demanded Air Conditioning be provided in all Delivery Vehicles and petition gets approved. UPS agreed that vehicles purchased after Jan,1 2024 would come equipped with Air Conditioning. Regular Package Cars will be outfitted with 2 Fans. - Just 2 days later on June 21, 2023 the International Brotherhood of Teamsters slammed what they called an "appalling" counterproposal and said "no more meetings until money gets real."
Fear in the numbers: The Teamsters union is made up of more than 340,000 workers at the package delivery company and so far (as of today) 97% of voting members have approved a strike.
UPS handles about 1 in 4 parcels shipped in the U.S. with the company handling 24 million packages on average per day. Millions of Americans rely on package delivery for basics like Food, Medication, clothing and even furniture. A strike would without a doubt affect the economy and bring on a supplychain ripple effect that could last for months.
What can businesses do NOW to help avoid disruptions?
Walkout rehearsals are literally taking place this week. The Teamsters mean business and have said "this is in the hand of UPS now." So, this is feeling real and can get real very, very soon. So what can your business do? Below are our suggestions and helpful tools so you can make the best decision for you and your company.
Renegotiate - Are you currently shipping with UPS? Have you thought about re-negotiating your contract? With so much in the air for UPS right now, this could be a good time to approach your UPS representative about the topic and if they can help you secure better pricing in the areas that make the most sense for you and your business.
Prepare Your website and T&C's - Are your Terms and conditions on your website or in your posted 'Shipping Policy' up to date? It's a good idea to keep this updated anyways, but why not prepare...Nothing is official until August 1st, but if the strike happens there undoubtedly be delays and mishaps. Do your terms include open language? Are you covered and better yet is your customer prepared for the worst case scenario?
Make the Switch - There are of course other methods of getting your packages out the door. FedEx, USPS and Amazon are still good methods from which shippers can look to if UPS were turned off for some time, but let's say the greater majority of your volume is with UPS currently, without time to negotiate, you could be overspending and leaving money and profits on the table.
Become Carrier Agnostic - Diversify. Separate your eggs into different baskets...If you haven't already explored this, most successful companies will tell you that using a multi-carrier approach is going to be the best way to take advantage of each carrier's strengths in the market and to manage your overall costs. While UPS and FedEx are very similar (essentially, just a different colored truck), using carriers like USPS can be very effective for light weight, regional and local shipments. Regional Carriers like OnTrac or GLS can be useful for West coast specific shippers and companies like Spee-Dee can be great in the Mid-West.
Work with a 3PL - Working with a Third Party Logistics Provider (3PL) can be an effective use of time and your money! 3rd parties are in the business of helping you take the work off your plate and help you focus on important day-to-day activities like sales and marketing. 3PL's can typically offer you more than one solution in one place and have the experience and knowhow to help you make an educated decision that's best for your business, specifically.
How Bellhop does it
Our origin story will always start with Parcel, first. Medical, Hospital, Higher Education, Manufacturing, E-Commerce, Wholesale, Retail...we have touched it all...better yet, we have sold it all! Every carrier in the market today has been part of our growth and literally someone we have represented (in the past) and offered as a service provider to clients.
We have experienced first hand what the strengths and weaknesses of each carrier are and can proactively help you navigate the sometimes confusing choices that befuddle shippers, today. Among the knowledge and knowhow we have, we also offer you our network. With over a decade of parcel knowledge and a variety of relationships each with their own expertise and artistic nature, we can help you achieve custom solutions that make the difference to you and exactly YOU.
Aside from custom solutions, we also offer you vetted pre-negotiated programs and pricing that are not regulated by volume or volume commitments like you would be bound to by working with the carriers direct. We like to say, "it's our job to keep the carriers honest" and we do while providing you better support, communication and visibility.
Bellhop would not hold up to it's Company Name, Brand or Mission if it did not make sure to lead with what we are best at: Elevating your Logistics Experience.
Raise your expectations. Raise your confidence in this industry. Raise your profits.
Work with the 3PL that lives and breathes making your success the number one goal.
Get in touch with us today to learn about what programs we can offer you!
Articles to browse:
UPS workers vote to strike, setting stage for biggest walkout since 1959 https://www.cbsnews.com/news/ups-strike-vote-teamsters-biggest-walkout-in-60-years/
Without a Package Deal, UPS Workers could strike In August; How to be Ready https://www.forbes.com/advisor/personal-finance/ups-strike/