UPS Drivers And Supporters Rally Nationwide, Potential Strike May Halt 25% Of US Goods Deliveries

United Parcel Service, Inc UPS drivers and supporters rallied in different cities across the U.S. over the weekend, including San Francisco and Atlanta, ahead of a potential strike starting next week. The Brotherhood of Teamsters Union has a contract with UPS that expires July 31.

What Are The Demands? Union members are seeking improved wages and working conditions, and union leaders have said that the group is ready to stop working if that’s what it takes to secure a new contract. The Teamsters say that if they do go on strike it will include more than 300,000 people and would bring a halt to a quarter of the country’s goods being delivered, according to CBS.

Historic Strike: It would be one of the biggest labor strikes in the United States in the last 100 years, according to Statista. The last strike to surpass 300,000 workers was the Steel Strike of 1919, in which about 350,000 steelworkers quit working for about four months.

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The Democratic Socialists of America (DSA) sponsored the Teamster rally in San Francisco. The political group supports unions and workers seeking better wages and living conditions. 

"We see the Teamster strike as a pivotal strike in this moment," said Katy Scott-Smith, DSA's labor press secretary. "If it happens, it would be, I think, 340,000 workers on strike - the largest private sector contract in America right now. So, basically, this fight will have shock waves for the whole labor community."

Giving In? UPS has agreed to some of the Teamsters’ demands, including installing air conditioning in all of its trucks. But the two parties have still not come to an agreement when it comes to wages and contracts. 

Sean O’Brien, the general president of the Teamsters Union, said that they are “ready to go to war” for their demands of better working conditions, an increase in full-time jobs and longer contracts. 

Price Action: Shares of UPS were trading 0.62% higher to $188.50 at the time of publication on Monday. The stock is up nearly 10% in the last month, as investors appear to be unbothered by the prospect of a nation-wide strike. 

Competitors like FedEx Corp FDX have also been trading higher throughout the last month amid overall strength in the market. Amazon.com, Inc AMZN which has expanded its own delivery services throughout the last decade, and was trading slightly lower Monday, but could benefit from a major UPS strike.

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