UPS and Teamsters accuse each other of abandoning contract negotiations.

 UPS and Teamsters accuse each other of abandoning contract negotiations.

UPS and the Teamsters Union are at odds over a new deal.

The contract covering approximately 340,000 workers expires on July 31.

UPS improved their offer last week, but the union argues it is insufficient Retail sector organisations urge sides to continue talks.

5 July (Reuters) - The Teamsters Union claimed on Wednesday that United Parcel Service "walked away" from contract negotiations, a claim the shipping giant rejected, accusing the union of doing the same.

In early morning announcements, the two sides traded salvos in an attempt to reach an agreement to avoid a strike when the current contract, which covers approximately 340,000 workers, expires at the end of the month.

UPS employees have already authorized a strike if the discussions fail. Such a walkout would be the first for UPS workers since a 15-day strike in 1997 that cost the firm $850 million and sent some consumers to competitors.

Both the union and corporate executives have previously stated that they wanted a settlement reached to avoid a strike, which might disrupt millions of daily deliveries.

If a strike occurs, UPS may struggle to regain the volumes lost to rival FedEx (FDX.N), according to Satish Jindel, head of logistics consultancy firm ShipMatrix, because both delivery companies are experiencing weak e-commerce demand.

"Right now, UPS handles about 20 million (packages) per day, while FedEx handles 12 million." So they can easily handle three or four million people without breaking a sweat. "And they'd love to keep it," Jindel explained.

BARGAINING POWER OF WORKERS

Unions are now pushing back on contract offers from employers dealing with labor shortages, requesting greater pay and improved working conditions after missing out on salary hikes during the pandemic.

"The Teamsters have stopped negotiating despite UPS's historic offer, which builds on our industry-leading pay," the firm stated, adding that the union should resume talks.

Earlier in the day, the union claimed that UPS made an offer that was unanimously rejected and that the firm had "walked away from the bargaining table."

"UPS had a choice, and they clearly chose the wrong path," said Sean O'Brien, national president of the Teamsters, which represents around 340,000 full- and part-time U.S. drivers, package handlers, and loaders at the corporation.

UPS upped its offer last week, but O'Brien claimed it did not go far enough to reward workers who risked their lives to keep goods moving during the early days of the COVID-19 pandemic, which generated the company's large profits.

Earlier in the day, the union claimed that UPS made an offer that was unanimously rejected and that the firm had "walked away from the bargaining table."

"UPS had a choice, and they clearly chose the wrong path," said Sean O'Brien, national president of the Teamsters, which represents around 340,000 full- and part-time U.S. drivers, package handlers, and loaders at the corporation.

UPS upped its offer last week, but O'Brien claimed it did not go far enough to reward workers who risked their lives to keep goods moving during the early days of the COVID-19 pandemic, which generated the company's large profits.

"Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy," UPS warned on Wednesday.

Meanwhile, the National Retail Federation (NRF) urged the company and the union to keep talks going in order to avoid a strike.

"The NRF is disappointed by the breakdown in negotiations earlier today...avoiding a strike or other disruptions as we enter the peak shipping season for the holidays is critical for retailers," said Jonathan Gold, the trade body's vice-president of supply chain and customs policy.

In the event of a strike, retailers plan to rely on the diverse delivery solutions they devised during the pandemic's disruptions.

"Retailers have a lot of other tools in their toolbox, such as in-store pickup, crowdsource deliveries, and other delivery services," Jessica Dankert, vice-president of supply chain at Retail Industry Leaders Association, said.

UPS stock was down 1.5% in midday trading.