America At The Verge Of ItsBiggest Labor Strike In Decades

We might soon be witnessing the largest strike in the nation- of UPS and Teamsters. It was on Tuesday the union pronounced that its members voted massively in favor of going on strike in case the deal isn’t struck before the expiry of the current labor contract.

Current state of affairs

Currently, UPS is the employer to about 260,000 Teamsters. A person well conversant with the latest developments has outlined that it signed its current contract about five years ago has so far added about 40,000 union members. He also revealed that the shipments, UPS transports are equal to almost 6% of the GDP of the nation. That implies the emergence of a labor dispute could eventually lead to the disruption of the US economy.

The issue at the spotlight is about how the shipping guru will be able to expand its operations in order to offer deliveries seven days a week. It was a year ago when UPS unveiled the regular Saturday delivery service. However, the union takes the stand that the company has in several instances made proposals targeted at expanding the weekend deliveries.

The creation of a two-tier wage system

One of the proposals being highlighted is the one to do with the creation of a two-tier wage system. This is a system operating on the concept of setting aside those part-time workers earning about $15 an hour and paying the same wage upon pushing them to the full-time category. Currently, the existing full-time drivers are getting an average of $36 an hour and when looked at on a yearly basis it amounts to $75,000.

Arguments

The Teamsters are moving separate ways when it gets to this particular proposal since some of them believe it is complicating the whole thing about the striking of a deal and avoiding the strike.

UPS Teamsters United, which happens to be an opposition group within the union, has launched an argument outlining that the delivery company needed to pay new full time workers the same rate as that it was paying the existing workers. In 2017, the delivery company posted a $5 billion profit.

The spokesman for UPS Teamsters United, David Levin opined, “Most people understand in the world of Amazon.com, Inc (NASDAQ:AMZN) and e-commerce, UPS isn’t going to be Monday to Friday or even Monday to Saturday any more, it’s going to be a seven-day operation.”

He added that they succeeded at making huge profits and that there wasn’t any need for concessions to make the move.

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