The potential damage to the US economy caused by a 10-day UPS strike might reach $7.1 billion.
A Michigan-based economic research company that analyzes the costs of labor disruptions estimated that it could be the most expensive work stoppage in US history.
Implications Of A 10-Day UPS Strike In The US
According to the assessment from Anderson Economic Group, the loss to companies and customers would be $4.6 billion in and alone, resulting in “significant and lasting harm for small businesses, household workers, sole practitioners, and online retailers across the country.”
Additional expenses include an estimated $816 million in direct damages for UPS as well as $1.1 billion in lost salaries for the company’s 340,000 Teamsters union members. The remaining expenses would come from missed tax revenue and from UPS suppliers.
Without a new contract being agreed upon, the union has declared that it will go on strike on August 1. Last week, negotiations ceased, with one side blaming the other for getting up and leaving.
There was no immediate response from the Teamsters union over the findings. It has previously stated that if there is a strike, it will be the company’s fault for failing to step up and accept the economic package that the union is requesting, despite the fact that its earnings nearly doubled during the current five-year contract’s duration.
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Hopes For Settlement Amidst Independent Studies
In order to prevent a strike, UPS stated that it will not comment on independent studies and that it is still optimistic about reaching a settlement with the union.
UPS has only ever seen one nationwide strike, a 16-day Teamsters walkout in 1997. It virtually stopped all US business during the strike and refrained from attempting any deliveries.
According to Patrick Anderson, head of Anderson Economic Group, the corporation back then had 180,000 Teamster-represented employees during the strike, which is barely more than half the number it has today, and it was much less important to the US economy.
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