FedEx is Winning From UPS' Stalled Union Negotiations

Benzinga 2023-06-22

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In an earnings conference call, a FedEx executive mentioned that the ongoing contract negotiations between United Parcel Service Inc. (UPS) and its unionized employees had allowed FedEx to engage with UPS customers. Although FedEx did not anticipate any immediate gains from the contract discussions, they reported progress with some legacy UPS customers. While the talks between UPS and the Teamsters Union have resulted in a tentative agreement on non-economic issues, economic matters such as wages, pensions, and health benefits still need to be resolved. These negotiations add to the string of challenges faced by the supply chain in recent years, stemming from the pandemic's impact on production and shipping. Despite the challenges, the shipping industry has seen increased profits due to rising shipping costs and delays.

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