Creating a contingency plan to prepare for a potential UPS strike

Interested in having the resources to do more? Discover how you can spend more time achieving your goals and reaching your full potential with ERA Group.

ERA Group is a network of 1,000+ specialists worldwide. We always have local expertise on your doorstep. ERA’s large network and depth of industry knowledge ensures our consultants deliver Value through Insight to your business.

Whether you would like to set up an initial meeting, gain more valuable insight into your industry or start the cost optimization process, we can help you achieve your business mission and enable you to spend more time focusing on new initiatives and innovation, helping your business succeed.

UPS’s five-year contract with Teamsters, which covers nearly 340,000 employees, including delivery drivers and package handlers, expires on July 31, 2023. As a part of negotiations for a new five-year contract, Teamsters union members have authorized a strike if they do not reach an agreement.

How Might a UPS Strike Affect Your Business?

UPS delivers about 25 million packages every day, representing about a quarter of the U.S. parcel volume, according to Pitney Bowes. UPS is the largest carrier of small parcel packages nationwide. The last UPS strike, in 1997, lasted 15 days. It substantially affected UPS’ profitability and boosted competitor revenue. In the past 25 years, our dependence on parcel delivery has only grown, and UPS now claims to transport 6% of U.S. GDP.1

As the July 31 negotiation deadline nears, there will be increased rhetoric and posturing from both sides. While we advise our clients not to believe everything they hear, it is crucial to be prepared for whatever does happen to minimize any disruption to your business.

Take Steps Now to Mitigate a Potential Strike Disruption

Think about all the ways a strike could affect your business, and take the following contingency steps:

Reduce your parcel shipments during the first half of August either by shipping earlier or by pushing out deliveries to the second half of August.
Notify your customers about potential disruptions and keep them updated.
Meet with your UPS representative and understand UPS’ plans in the event of disruption.
Engage alternate suppliers. The U.S. Postal Service and FedEx picked up substantial slack during the 1997 strike. Now there are also more local/regional alternative carriers. If you already have multi-carrier shipping, research and understand the capability of other carriers. While you don’t have to switch or add a carrier right now, it is a good time to establish contact with alternative representatives.

Need Help?

In addition to helping you reduce costs, our specialists can help you create an actionable, money-saving contingency plan to mitigate shipping disruptions.

About the Author

Dileep Kulkarni is a Senior Consulting Partner with ERA Group. Based in Portland, Dileep focuses on unique customer needs to craft small package freight solutions that deliver saving while improving quality and service.

Back