The 2:00 Minute Warning

This week, the Teamsters and UPS are meeting for the tenth week of negotiations. We wanted to make sure that this is on your radar, since the outcome could have a huge impact on the LTL and parcel sectors of the transportation industry. Some highlights:

• The current five-year contract with the Teamsters lasts until July 31
• UPS has 260,000 union workers – if a strike takes place it would be the biggest one in decades
• Over 90% of the Teamsters authorized striking against UPS if necessary
• Their last strike took place in 1997 and lasted 16 days
• Key issues on the table are wage increases, contributions to the health and welfare pension funds, and overtime compensation, as well as many other items

While these could be huge issues, we want to believe the strike will be avoided. UPS is a smart, well-run organization and they have been through this before. But let's be blunt. A lot of major concessions will have to be made for this to be settled before July 31, 2018. It's no secret, given what is happening in the transportation industry, the Teamsters have a lot of leverage – and they know it!

The potential for a strike is a big deal. But here is something that could be even a bigger deal: If a UPS strike comes into fruition—or another disruption occurs—do you have a contingency plan in place that addresses how you will satisfy your customers?

This potential strike comes at a time when transportation rates are already at an all-time high, and with peak season not far off, there are plenty more threats on the horizon. That's why it is absolutely critical for your transportation management plan to include contingencies for times such as this. If you don’t have this in place, or need help putting one together, contact us at 630-833-0890 or send us an email.

Don't delay—the time to act is now! As always, we are on your team, here to help, and passionate about seeing you be successful.