In one week, unionized workers at UPS will walk out if a labor agreement isn’t reached — an action that would have major economic consequences.
UPS and the Teamsters union have been in contract negotiations for months, with the union overwhelmingly voting to strike if a deal isn’t inked by July 31. Now, with just days left, economists are starting to gauge just how damaging a walkout would be. It’s crucial, though, to note that UPS remains confident a deal will be reached in time.
To understand just how damaging a UPS strike would be, the scale of the situation must be put into perspective.
Some 6% of the country’s gross domestic product travels through UPS — a massive amount. The UPS and Teamsters labor contract also represents the largest private-sector union agreement in North America, and if there is a strike, it would be the biggest strike for a single employer in United States history.
High level, the effects would be pretty significant,” Sean Higgins, a research fellow at the Competitive Enterprise Institute who is an expert in labor and employment issues, told the Washington Examiner.
A strike of even just a matter of days would cost the economy billions of dollars. A recent analysis by Anderson Economic Group found that a 10-day strike would cost the economy more than $7 billion. That would be the most expensive strike in at least a century.
Read more at Washingtonexaminer.com
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