A UPS strike in the United States poses a significant risk of major disruption.

 A UPS strike in the United States poses a significant risk of major disruption.

UPS and its workers in the United States have reached an impasse, raising the prospect of the company's first strike in more than 25 years.

For months, the two parties have been bargaining on demands such as more pay and better working conditions.

Workers believe they are entitled to a better contract, especially given the increase in work during the pandemic.

A UPS strike might cause substantial economic impact.

Every day, the firm distributes over 20 million packages in over 220 countries throughout the world.

It predicted in 2020 that the value of the items it handled was worth approximately 6% of the US GDP, including time-sensitive shipments for health care industries and others.

"This multibillion-dollar corporation has plenty to give American workers — they just don't want to," said union leader Sean O'Brien, head of the Teamsters, which represents over 340,000 full-time and part-time UPS employees in the United States. "UPS had a decision to make, and they clearly chose the wrong path."

Teamsters: A dormant American behemoth ready for a battle

Hot weather necessitates worker safeguards.

UPS was proud of its offer, which it stated was based on "industry leading pay." It claimed the union had "a responsibility to remain at the table" with over a month left to negotiate.

"Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the US economy," according to the statement.

UPS employs the most unionized workers of any corporation in the United States.

As recently as last week, the two sides looked to be making headway, reaching agreements on a variety of subjects such as installing air conditioning in trucks and removing a two-tier pay system for part-timers. However, compensation increases continue to be a source of contention.

Teamsters claimed talks ended at 4 a.m. in the United States on July 5 without an agreement, and no additional talks were planned. UPS employees overwhelmingly approved a strike last month if the two parties failed to reach an agreement by July 31, when the current contract expires.

A strike would be perilous for both parties, with parcel volumes dwindling as the economy slows and the pandemic boom fades, leaving competitors with the potential to take some of the business, according to Satish Jindel, president of ShipMatrix Inc, which advises businesses on shipping arrangements.

He claims that several of the companies he works with have already diverted shipments, and that many more are considering alternate options.

"If they are trying to play the game of who is going to fall off the cliff, you know what - they both will fall off the cliff," Mr Jindel said of UPS and the union. "There will be no clear winner."

UPS was last involved in a strike in 1997, which cost the company hundreds of millions of dollars.

The strike comes at a time when labor tensions are high in the United States, particularly in the delivery industry.

Last month, the US Labor Secretary intervened to mediate a settlement between ports and dockworkers on the West Coast, which had resulted in massive slowdowns and stoppages. In December, Congress was obliged to intervene to prevent a freight rail strike in the United States.

Antonio Rosario, who began working for UPS in New York in 1994, said he was prepared for a walkout, especially after the grueling conditions workers endured during the pandemic while the company's earnings skyrocketed.

"The workload was ridiculous. "It was like a never-ending peak - I'd never seen that many packages come through our system before," he explained. "We're not asking for anything crazy," he continued. They have the means to do so."

Mr Rosario was in college, aspiring to be an actor, when he started working at UPS. After his father died, he took a job to assist support his family and maintain them in their house. However, he claims that workers today, particularly part-timers like himself when he started, cannot find the same steadiness. It's one of the reasons he's been organizing a strike among his coworkers.

"I believe in this movement so much because there are so many kids like me," he explained. "Finding a union job for somebody like that, who wasn't able to go to school, wasn't able to go to college, and can get a good union job and make a living, is a big deal, and these corporations are trying to take that away from people, and that shouldn't be the way it goes."

"I'd like to go on strike just to teach them a lesson," he said. "I think they need to know how quickly we can take our labor away."