Contract discussions between UPS and Teamsters have broken down, increasing the likelihood of a strike.

 Contract discussions between UPS and Teamsters have broken down, increasing the likelihood of a strike.

UPS and the International Brotherhood of Teamsters reached an impasse early Wednesday, raising the prospect of a strike only weeks before their contract expires.

Negotiations that lasted all the way through the Fourth of July vacation ended with each side blaming the other of abandoning the effort.

The union stated in a statement that UPS walked away from the table around 4 a.m. after refusing to make a "last, best, and final offer," and that it had "nothing more to give." The union's bargaining committee had rejected the company's offer.

"This multibillion-dollar corporation has plenty to give American workers — they just don't want to," said Teamsters General President Sean O'Brien in a statement. "UPS had a decision to make, and they clearly chose the wrong path."

However, UPS claims that the Teamsters "stopped negotiating," despite the fact that there is still over a month to reach an agreement.

"We have not walked away, and the union has a responsibility to remain at the table," claimed the corporation in an unsigned statement.

It's the latest labor issue to jeopardize a key component of the nation's transportation infrastructure. A almost year-long disagreement over wages and automation caused sporadic shutdowns at numerous West Coast ports earlier this year, even though employees were never officially on strike, hurting trade routes from Asia. Last year, President Biden had to personally intervene to prevent a rail workers' strike.

A UPS strike, the country's largest shipping corporation, would disrupt the transportation of products and commodities across the country and have major economic consequences. UPS handles around 6% of the country's gross domestic product each year.

It's the latest labor dispute to imperil the nation's transportation infrastructure. A almost year-long salary and automation dispute forced periodic shutdowns at multiple West Coast ports earlier this year, despite the fact that employees were never officially on strike, harming trade routes from Asia. Last year, President Biden had to intercede personally to avoid a rail workers' walkout.

The union has questioned the salary increases contained in prior business offers, claiming that they do not keep up with the cost of living, particularly for part-time workers. On average, company drivers earn $95,000 per year, and part-timers earn $20 per hour after 30 days.

The two parties have informally reached agreements on key items, including the provision of air conditioning in new vehicles and the prohibition of the installation of driver-facing cameras.

The talks are taking place at a time when UPS is facing dwindling revenue and strong competition in its main business. The corporation reported first-quarter revenue of $22.9 billion, a 6% decrease from the previous year. To $2.5 billion, operating profit plummeted 21.8 percent.

Its competitors with significant pockets are heavily investing in developing their logistical networks. The United States Postal Service, for example, is starting on a $9.6 billion plan to electrify its fleet over the next five years, with 66,000 new delivery trucks.

This is an ongoing narrative that will be updated.