2023-07-05 07:59:39 ET
United Parcel Service ( NYSE: UPS ) and the Teamsters Union issued dueling statements early on Wednesday as negotiations over a new labor contract took a turn for the worse.
The Teamsters claimed UPS ( UPS ) walked away from negotiations over a new contract and have "clearly" chosen to go down the wrong road. For its part, UPS ( UPS ) denied the claim and stipulated that the union had stopped negotiating, despite the company's "historic offer" that builds on industry-leading pay. "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," read a statement from the shipping giant provided to the media.
Last week, The Teamsters said the shipping giant's latest proposal included "miniscule raises and wage cuts to traditional cost-of-living adjustments." The union said it reached consensus on 55 non-economic issues with the company on June 19, but UPS has continued to seek a cost-neutral contract during the economic negotiations. Meanwhile, UPS ( UPS ) stated that it remains at the table, ready to negotiate. The background is that UPS and the International Brotherhood of Teamsters are negotiating a national contract ahead of a July 31 deadline when the current agreement expires. So far, deals with the union have been worked out for most of the outstanding supplemental agreements, which govern local issues. However, the master agreement covering the 340K workers still needs to be worked out. Notably, the UPS labor deal will be the largest private sector collective bargaining agreement in the U.S., and the deal talks involve the direct participation of Teamsters President Sean O’Brien.
Shares of UPS ( UPS ) fell 2.05% in premarket action on Wednesday. The stock is up more than 9% over the last week, with investors seeming to still expect a labor contract resolution.
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UPS slips after talks with Teamsters over new labor contract break down