UPS Freight Customers Await Potential Strike

LTL customers of UPS Freight are bracing for the worst with a potential Teamster Strike scheduled to take effect sometime within the next week or so, or perhaps not at all.  You see, workers will begin voting on Wednesday 11/7 on what the Teamsters Union called their “Final Offer” (whatever that really means).

An important point to make here is that if there is a strike by the Teamsters working for UPS Freight, UPS’ parcel network will NOT be affected as that group has already agreed to a new 5 year contract back in October.  We are sure many shippers may have been or perhaps still are quite confused between both of the UPS operations as it can be difficult sometimes to discern the difference between the two separate and distinct operations, LTL and Parcel.  We heard from many parcel shippers that had been panicking as we enter the Peak Holiday shipping period for parcel shipments.  They were pleased to hear that their shipments at least will be out for delivery.

To “aid” their customers, UPS Freight is planning on “emptying their network of freight within their system by Friday, November 9^th”.  That means they will not accept any overnight freight pick-ups after November 7^th.  Between now and then we believe it will be mass confusion as to whether a shipment already within the UPS LTL network will in fact be delivered.  Shippers would be wise, if they have other options in place, to tender their freight to other carriers and not UPS Freight until this labor issue is finally settled.

So what do we see as the sticking points between labor and management?  For one thing, UPS’ profits as a whole have been skyrocketing, who wouldn’t want a larger piece of that pie?  And, while the economy is still humming why not put as much financial pressure on management as you can.  Another point is that capacity remains tight and LTL rates have been rising in recent months, that is obviously another reason to press on for more.  Bear in mind however that the UPS Freight division is ONLY responsible for 5% of UPS’ sales.  Not only that, the LTL freight division has the lowest profit margin for the company, so really, how much more can UPS afford to give to the UPS Freight workers.  Only time will tell and the answer may very well be in the union’s “Final Offer!”

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