7/10/23 Monday Parcel News Update

1. Part-Time Pay a Top Disagreement Between UPS and Teamsters

Teamsters President Sean O’Brien joined CNN for an interview last week, where he shared that part-time pay is the key point of disagreement between the union and UPS and what caused negotiations to stall.

O’Brien noted that “significant progress” has been made and they believed a deal would get done last week, but claimed UPS told them “there was no more to give.” In a separate interview with Supply Chain Dive, he said they were “probably $6 to $7 per hour apart on where those part-timers need to be for starting rates of pay.”

In the CNN interview, O’Brien was clear in sharing his belief that a strike would be a “self-inflicted wound” from UPS.

Interview from CNN

2. FedEx Shares Plan for Potential Volume Influx

With a looming fear of a strike from UPS workers, FedEx is accepting additional volume into their network for a limited time. Volume shipped between July 17 and 21 will serve as a baseline for network capacity.

FedEx has noted that no carrier can absorb all of UPS’ volume, meaning they’ll be selective with what companies they accept into their network, and how much volume each can ship. Volume acceptance varies depending on where a business falls in FedEx’s small/medium or large business classifications.

“Shippers who are considering shifting volume to FedEx, or are currently in discussions with the company to open a new account, are encouraged to begin shipping with FedEx now,” the carrier said in a statement.

Article from Max Garland, Supply Chain Dive

3. Amazon Strikes Expanding with Teamsters

The Teamsters have been making unionization of Amazon workers a top priority in recent years, and the number of small, local strikes at Amazon facilities is growing. In recent weeks, strikes have occurred at various Amazon facilities on both the East and West coasts, as Amazon employees are demanding better working conditions and protesting what the union calls “unfair labor practices.”

Release from The International Brotherhood of Teamsters