As part of the wave of strikes happening across industries in the US, workers for shipping giant UPS were set to strike to demand better pay and working conditions as a union.
If UPS failed to meet the International Brotherhood of Teamsters’ union demands by 1 August, the strike was predicted to take 25 million package deliveries per day out of the economy.
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This strike would have severely affected the retail industry, which heavily relies on product delivery and reliable supply chains, as consumers now expect fast, if not same-day, delivery.
However, according to the BBC, the union and UPS have now come to a tentative collective bargaining agreement, settling on starting pay at $21 per hour for new part-time workers.
The National Retail Federation (NRF) has discussed the deal and avoided a strike.
NRF president and CEO Matthew Shay commented: “UPS is a major partner of the retail industry, and we are grateful it came to an agreement with the Teamsters without disruption to the marketplace.
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By GlobalData“The timing of this agreement is critical for consumers and families during the peak back-to-school shopping season. Retailers rely on stability within their supply chains, and this agreement will bring long-term stability, as well as assurance to the millions of businesses and employees who rely on smooth and efficient last-mile delivery.”
The NRF has been reporting steady growth in monthly US retail sales since the beginning of the year, which can now continue with the help of UPS workers.
