United Parcel Service, Inc. (NYSE:UPS) workers are reportedly heading towards a strike, as no agreement could be reached between the company and Teamsters.

A potential strike by more than 300,000 UPS drivers threatens to disrupt the U.S. supply chain. 

"The company walked out," the report quoted Teamsters spokeswoman Kara Deniz.

The current labor contract expires at the end of July. Union employees will not work beyond July 31, when the current contract expires, Deniz mentioned.

Although UPS increased its offer last week, Sean O'Brien, general president of the Teamsters, argued that it did not go far enough to reward workers who risked their lives to keep goods flowing during the early days of the COVID-19 pandemic, which fueled tremendous profits for UPS.

Price Action: UPS shares are trading lower by 2.15% at $179.81 premarket on Wednesday.