United Parcel Service, Inc. (ticker: UPS) aircraft maintenance employees voted to approve a strike — meaning there could be trouble ahead for shipments.
The workers are a part of Teamsters Local 2727, a group founded in 1987 that represents aviation maintenance technicians, aircraft maintenance inspectors and more. They had been negotiating with UPS for three years, during which UPS consistently wanted health care compromises and a bump in retiree employment costs, reports the San Gabriel Valley Tribune.
UPS wants to increase retiree health coverage from $3,600 to more than $19,000 annually, Local 2727 President Tim Boyle told the San Gabriel Valley Tribune.
“No one wants to strike but UPS is refusing to work with us,” Boyle says. “If there’s no movement by the end of the week we’ll ask the mediator to release us and then there will be a 30-day cooling-off period. During that time both parties will try to reach an agreement.”
Otherwise, Boyle told the Tribune this would head to a Presidential Emergency Board — aka an additional 30-day review. A work stoppage likely wouldn’t be until after the holidays. UPS is anticipated to ship 700 million packages during the holiday season.
If a strike occurs and planes don’t fly, consumers and retailers would experience delays in merchandise shipments. UPS Airlines has previously worked out five contracts with mechanics over 28 years.
“A strike is not possible unless authorized by the National Mediation Board,” Mike Mangeot, a UPS Airlines spokesman, told the San Gabriel Valley Tribune. “The vote is simply a routine show of solidarity common in many negotiations. The reality is, talks continue to progress under the control of the National Mediation Board. UPS continues to negotiate in good faith for a contract that is good for our employees, our customers and our company.”
UPS stock is up about 17.6 percent on the year.
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United Parcel Service, Inc. (UPS) Union OKs a Strike originally appeared on usnews.com
