The fireworks aren’t over, as negotiations over a new contract have broken down between the United Parcel Service (UPS) and the International Brotherhood of Teamsters.

On Wednesday, the Teamsters, which represents the rights of more than 340,000 UPS employees, tweeted that UPS “walked away” from the bargaining table around 4 a.m. EST. The union claims the shipping giant presented an “unacceptable offer” that failed to address members’ needs.

UPS has responded with a statement on its website, countering that the Teamsters “stopped negotiating.”

“We have not walked away, and the union has a responsibility to remain at the table,” UPS said. “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.”

Impact On Promo

The Teamsters claimed last week that UPS had pledged to reach a contract agreement no later than July 5.

  • No additional negotiations are scheduled, and the current contract expires at the end of the month.
  • UPS workers have already voted to authorize a strike, which hasn’t happened for more than 25 years, Reuters reported.

A work stoppage would be catastrophic for the U.S. economy, including the promotional products industry. UPS ships more than 24 million packages most days, and unionized Teamster labor is crucial in getting deliveries onto its trucks.

  • In preparation of a potential strike, promo firms should be transparent with customers, warning them about possible delays and considering other carries to potentially work with.

In May, John Janson, SanMar’s VP of global logistics, told PPAI Media he predicted the negotiations would likely go deep into July, so it should not be a shock that the matter isn’t yet resolved. Janson, who keeps in regular contact with UPS, expressed optimism that a contract would be doable for both sides.

“I can tell you that we have a high degree of confidence and hope that UPS and their labor force reach a win-win agreement,” Janson said.

What The Teamsters Want

PPAI Media covered the initial proposals in May, which focused largely on a National Master Agreement covering wages, healthcare and pensions, as well as supplemental agreements specific to each region.

“This multibillion-dollar corporation has plenty to give American workers – they just don’t want to,” said Teamsters General President Sean M. O’Brien. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”

 According to the New York Times, the sides have reached tentative agreements on a few specific issues since negotiations began, including a requirement for air conditioning in new trucks.