He pointed out that the situation isn’t just about consumers getting their Amazon packages. “We’re certainly much more reliant right now on parcel carriers than we were back in the ’90s,” Miller said. UPS employs about a third of those workers. Another way to look at it: Employment in the courier and messenger sector stands at 1.1 million, which is double what it was in 1997. E-commerce makes up about 20 percent of all retail sales when you exclude things like gas and motor vehicles, according to Bureau of Labor Statistics data analyzed by Jason Miller, interim chair for the supply chain management department at Michigan State University’s business school, and it’s up about 25 percent from pre-pandemic levels. That includes $4.6 billion in losses to consumers and businesses that rely on UPS, as well as more than a billion in lost wages and $800 million in company losses.Į-commerce had already been a growing part of Americans’ shopping before 2020, but it shot up during the pandemic and, though down from its peak, is only expected to grow. And there’s no good that comes from other players in the industry,” Zegras said, adding that there’s not enough capacity among the remaining parcel delivery services, including Pitney Bowes, to handle the demand.Ī 10-day strike would cost the economy more than $7 billion and be the costliest work stoppage in at least a century, according to a new study by Anderson Economic Group, which researches labor disruptions. There’s no good that comes from this for the merchants. “There’s no good that comes from this for the consumer. That means headaches and delays for many of the people relying on UPS, which is responsible for about a quarter of all parcel delivery volume in the US, according to Pitney Bowes. While competitors like FedEx and the US Postal Service could pick up some of the deliveries, experts said logistics networks are too strained to fill many of the gaps that would be created by a UPS strike. “That was a very long time ago and the world was very different,” said Gregg Zegras, president of the global e-commerce business unit at shipping technology company Pitney Bowes, which collects data on the package delivery industry. That’s because the economy a quarter-century ago is entirely different than now - one where package delivery is more important than it’s ever been. If they do strike, things could be a lot worse this time around, putting even more pressure on companies, consumers, and UPS. Now, UPS workers are slated to strike again at the end of the month if they don’t come to a union contract agreement. It lasted 15 days before the delivery company acceded to many of the union’s demands. When UPS workers last went on strike in 1997, the New York Times reported that the labor stoppage “created myriad inconveniences, large and small, for companies and consumers across the nation” and “largely crippled” the company.
The story that follows was originally published on July 11 and last updated on July 14.
If the deal holds, it represents a major victory for unions at a moment of intense labor strife.
Aug 31st trucker strike driver#
The provisional deal includes a $7.50 an hour pay increase for all UPS employees, as well as the elimination of a lower-paid class of delivery driver and the installation of air-conditioning units in delivery vans.
Editor’s note, July 25: UPS and the International Brotherhood of Teamsters reached a tentative agreement on Tuesday, which should avert a nationwide strike that had been planned for August 1.
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