Strike Averted, but UPS Customers May Face Higher Shipping Rates After Teamsters Deal

InflationMoney Matters
Written By Jennifer Joslyn

🪧 Strike Averted, but UPS Customers May Face Higher Shipping Rates After Teamsters Deal.

The Teamsters and UPS have reached a tentative labor agreement, averting a potential strike that could have disrupted the supply chain. However, the new agreement is likely to result in higher shipping rates for customers. The deal includes significant pay raises and benefits improvements for UPS Teamsters, but the cost is expected to be passed on to customers through rate increases. Analysts suggest that UPS may follow a rate increase trend, similar to last year's 6.9% increase, which could see rates rise by at least 8% following the new contract. The agreement is subject to voting and ratification by union members, with UPS Teamsters expected to vote on the offer electronically in August.

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Jennifer Joslyn
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