The new 5-year deal between UPS and the Teamsters will cost less than the $30 billion projected by the union. There are ways that UPS is trying to make up a bit of the difference which may be surprising. UPS has cut 2,500 management positions in its second quarter and continues to lay off selective management. It has also offered early retirement to company pilots, represented by the Independent Pilots Association. The new contract also has given UPS the option to automate some work. Tracking chips could eliminate workers who scan roughly 20 million packages per day.
Read the full story by Lisa Baertlein and Priyamvada C for Reuters, published September 12, 2023, here: https://www.reuters.com/business/ups-ceo-says-new-labor-deal-with-teamsters-cost-less-than-30-bln-cnbc-2023-09-12/