Two Airbus A300 freighters wait to be loaded at the UPS facility at Dallas-Fort Worth International Airport. [Credit: Jim Allen/Freightwaves]
Key Takeaways:
UPS pilots, represented by the Independent Pilots Association (IPA), have committed to honoring a potential Teamsters strike, which would immediately ground the company's global air operations if ground workers walk off the job on August 1.
A "rich" Teamsters contract is expected to significantly increase UPS's labor costs, potentially forcing substantial rate hikes on shippers to cover the new expenses.
These anticipated rate increases and labor costs risk significant market share loss for UPS to competitors and would result in slower deliveries and higher shipping charges for consumers and businesses.
Editor’s Note: This article originally appeared on FreightWaves.com.
The union representing UPS pilots says they will not cross picket lines if Teamsters drivers and package sorters walk off the job when the current contract expires Aug. 1, resulting in the immediate shutdown of the express logistics company’s global air operations.
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Eric is the Air Cargo Market Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals from the American Society of Business Publication Editors for government coverage and news analysis, and was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. Eric is based in Portland, Oregon. He can be reached for comments and tips at ekulisch@freightwaves.com
