UPS will resume contract talks with the union representing 330,000 of its employees, the package carrier announced Wednesday. Talks broke down between the two parties July 5.

What You Need To Know

  • UPS announced Wednesday that it will resume contract negotiations with the Teamsters union representing 330,000 of its workers next week

  • Talks between the two parties broke down July 5

  • If a deal isn’t reached by July 31, when the current UPS contract with the Teamsters expires, unionized workers have voted overwhelmingly in favor of a strike that could paralyze shipping throughout the country

  • UPS is the largest package delivery company in the world, shipping 25 million packages daily

“We are prepared to increase our industry-leading pay and benefits but need to work quickly to finalize a fair deal that provides certainty for our customers, our employees and businesses across the country,” the company said on its web site.

UPS made the announcement Wednesday, shortly after the Retail Industry Leaders Association issued a plea that both parties return to the bargaining table to avert billions in losses for the U.S. economy.

If a deal isn’t reached by July 31, when the current UPS contract with the Teamsters expires, unionized workers have voted overwhelmingly in favor of a strike that could paralyze shipping throughout the country.

UPS delivers 25 million packages daily — the equivalent to 6% of the U.S. Gross Domestic Product. It is the most widely used delivery company in the world, sending packages for more than 20,000 companies, including Amazon, Apple and Walmart.

Higher pay is the main sticking point for the International Brotherhood of Teamsters that represents UPS workers. The Teamsters say both full- and part-time employees need to be compensated in a way that reflects the profits UPS has made since the pandemic inspired a home-delivery bonanza. Last year, UPS brought in $100.3 billion in revenue, according to its web site.

According to UPS, its part-time employees earn an average of $20 per hour after 30 days. Its delivery drivers earn an average total compensation package of $145,000 per year, including healthcare benefits.

Last week, UPS said it had begun “implementing business continuity plans to prepare for any outcome,” including training non-union drivers to deliver packages if the Teamsters choose to strike.