Jul 19, 2023
UPS workers are prepared to strike come August if the company doesn’t meet their demands for better pay and benefits. But with the deadline looming, some Americans are now pushing back on whether the delivery workers are entitled to those higher salaries in the first place.
"No way you deserve 42 an hour as a delivery guy lol. Takes zero skill,” wrote a viewer on one of UPS driver Juan Trujillo’s TikTok posts.
Advertisement
Trujillo fired back in a viral video, claiming that even $42/hour isn’t enough, which is why full-time UPS workers will be getting a raise of around $1.50 this year. UPS typically adds a cost-of-living adjustment (COLA) to its wages each year in addition to any other base raises, but the company has yet to confirm a hike for this year.
“We’re not going on strike because the drivers aren’t getting a raise,” Trujillo continues. “We’re going on strike because the part-timers are only making $16 an hour, and that’s unacceptable.”
If UPS and union members don’t reach an agreement by Aug. 1, 97% of union members have voted to authorize a strike — which would be the first in 25 years for the shipping giant.
Why UPS workers may go on strike
The Teamsters union, which represents about 340,000 UPS workers, is calling for better benefits, pay raises and to ax the two-tier wage system for part-time and full-time workers.
Delivering packages can often be a physically demanding job and especially with temperatures this summer hitting record highs, the conditions can range from uncomfortable to unsafe. UPS has reported at least 143 heat-related injuries to the federal Occupational Safety and Health Administration since 2015. In some cases, workers have been hospitalized, or even died.
A tentative agreement over air conditioning in delivery vehicles was reached in June, but negotiations fell apart last week, with each side accusing the other of walking away from the table.
On the UPS website, it says full-timers make $95,000 a year and part-timers earn $20 an hour on average after 30 days — but union leader Sean O’Brien told ABC News that’s “not telling the true story.”
O’Brien says full-timers work 60 to 65 hours a week, while part-time wages are actually closer to $16 an hour.
Advertisement
“UPS is selective. They pick and choose on who they're going to pay, what area, and they can raise the rates,” he says.
O’Brien says part-time workers are currently “working for poverty wages,” and his goal is to ensure UPS establishes a livable starting wage for these workers. The company reported over $100 billion in revenue last year, and O’Brien believes union members deserve to reap some of those benefits as well.
And many full-time workers agree. “I’ll sacrifice two weeks of work if [I have to] because that’s what solidarity is. That’s what we do,” Trujillo says in his video.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and the simple steps to fix it ASAP
- Robert Kiyosaki begs investors not to miss this ‘explosion’ — says this 1 asset will surge 400% in a year
- Vanguard reveals what could be coming for U.S. stocks, and it’s raising alarm bells for retirees. Here’s why and how to protect yourself
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What a strike means for the economy
A 10-day UPS strike could cost the U.S. economy over $7 billion, with $4 billion in losses for consumers and small businesses, according to analysis from consulting firm Anderson Economic Group. This would also mark the most expensive strike in at least a century.
UPS makes up 24% of the market share by parcel volume, according to Pitney Bowes Parcel Shipping Index. Competitor FedEx also revealed in an internal report obtained by NPR that, "In the event of a market disruption, no carrier can absorb all UPS volume.”
If a strike goes ahead, Americans can expect slower delivery times, supply chain disruptions and even higher shipping costs.
Ohio State University logistics professor Terry Esper also told Forbes that rural areas with limited delivery options and small businesses that can’t afford to switch providers will be hardest hit by the strike.
Esper says even if businesses do find another provider, since many are contracted to delivery companies, any last-minute switching to standard published rates could drastically push up costs — and likely result in those costs being passed on to consumers.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- This 20-year-old lotto winner refused $1M in cash and chose $1,000/week for life. Now she’s getting slammed for it. Which option would you pick?
- Warren Buffett used these 8 repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
