UPS Drivers Consider Going On Strike, After Failed Labor Talks: Report

United Parcel Service, Inc. 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. 

Weeks-long talks between UPS and the Teamsters fell apart early Wednesday morning in Washington after stretching through the July 4 holiday, with beleaguered negotiators emerging to say the talks had collapsed, reported Bloomberg.

"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.

"The Teamsters have stopped negotiating despite UPS's historic offer that builds on our industry-leading pay," Reuters cited UPS, denying the walkaway.

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.