UPS driver strike looms after labor negotiations break down

• The workers' current contract expires July 31. No additional negotiations are currently scheduled, the Teamsters Union said.

The big picture: The Teamsters — who represent more than 340,000 UPS workers nationwide — said that UPS "walked away from the bargaining table" after putting forth an "unacceptable" offer that was rejected by the Teamsters.

• UPS refuted the claims in its own statement, saying UPS has not walked away from negotiations but rather that the Teamsters "stopped negotiating despite UPS's historic offer."

State of play: The negotiations have been held up by disagreements over pay and cost of living increases.

• The union argues that salaries haven't reflected the large profits UPS enjoyed in recent years, Bloomberg notes.
• The Teamsters also say UPS hasn't done enough to reward workers who risked their health to deliver packages during the pandemic.

Between the lines: UPS delivers 20 million packages every day in the U.S. Should a strike occur, competitors like FedEx and the postal service likely wouldn't be able to absorb all of the extra load, snarling supply chains.