6/26/23 Monday Parcel News Update

1. Teamsters Pushing UPS for Pay Raises

Teamsters and UPS have reached tentative agreements on all non-economic issues – 55 in total, according to Teamsters President Sean O’Brien.

With their attention now shifting to economic terms, UPS and the union seem to be further apart. Teamsters called UPS’ wage and benefit proposals “appalling” and said they won’t meet again to negotiate until the carrier provides a “realistic and respectful” offer.

Only 35 days remain to reach an agreement before Teamsters could enact a strike.

Article from Max Garland, Supply Chain Dive

2. FedEx Continues Cost Cuts, Grounding Planes

In a call last week, FedEx shared plans to ground 29 more airplanes, citing “demand challenges.” The carrier has already cut nearly 29,000 jobs, closed facilities, retired 18 aircraft and reduced Sunday deliveries in a bid to slash $4 billion in fixed costs by the end of the 2025 fiscal year.

CEO Raj Subramaniam said that the measures will help FedEx “through an environment that we expect to remain marked by demand challenges, particularly in the first half.”

In the same call, FedEx shared they’re yet to see any material benefits from the strike fears amid ongoing UPS/Teamsters negotiations.

Article from Reuters

3. Amazon Re-Opening Enrollment for Seller Fulfilled Prime

After a four-year hiatus, Amazon is reopening enrollment for their Seller Fulfilled Prime (SFP) program, allowing eligible merchants to complete their own fulfillment while placing the “Prime” badge on their product listings.

Enrollment for the program closed in 2019, after Amazon determined that two-day delivery performance among SFP sellers wasn’t satisfactory for the expectations consumers place on the Prime service.

Experts believe re-opening enrollment could be a play to lighten the burden on Amazon’s logistics network ahead of Prime Day and a potential strike from UPS, one of their largest fulfillment partners.

Article from Glenn Taylor, Sourcing Journal