UPS-Teamsters 2028 showdown will unleash parcel industry tsunami, analyst warns

Industry
โดย FreightWaves·US·Read original
Summary · why it matters

An influential industry analyst predicted that United Parcel Service's 2028 contract negotiations with the Teamsters union will trigger a massive market reaction that either wipes UPS from the last-mile delivery market or severely damages its competitors. Satish Jindel, president of ShipMatrix Inc., said at a supply chain conference that UPS must convince the union that the current wage structure is unsustainable, as Teamsters drivers cost about $65 per hour in total compensation compared to FedEx drivers at about $35 to $39 per hour and regional carriers using gig workers at about $15 per hour or less. Jindel argued that if UPS takes a hard stand and replaces striking drivers with non-union workers from FedEx and Amazon, while leaning on its Roadie gig platform, it could dominate the parcel market like it did in the 1990s; conversely, giving in to union demands would cause its parcel business to wither away. He also criticized new Postmaster General David Steiner for switching back to providing last-mile delivery for e-commerce retailers, saying the Postal Service's high-cost, unionized workforce will make it increasingly difficult to offer Parcel Select service at a competitive price. Jindel added that Walmart, with its insourced gig-worker delivery model, would be best positioned to withstand the upheaval, while FedEx, Amazon, and regional startups would face significant challenges.

Impact on stocks 4

Industrials▼ · 2 stocks
United Parcel Service Inc
UPS
± MixedRegulationrelevance

Article discusses UPS's 2028 contract negotiations with Teamsters, which could lead to either dominance or decline depending on outcome.

FedEx Corporation
FDX
▼ NegativeCompetitionrelevance

Analyst warns that if UPS takes a hard stand, it could dominate the parcel market, severely damaging competitors like FedEx.

Consumer Staples▲ · 1 stocks
Walmart Inc.
WMT
▲ PositiveCompetitionrelevance

Analyst says Walmart's insourced gig-worker delivery model positions it best to withstand the parcel industry upheaval.

Artificial Intelligence▼ · 1 stocks
Amazon.com Inc
AMZN
▼ NegativeCompetitionrelevance

Analyst predicts UPS could replace striking drivers with non-union workers from FedEx and Amazon, potentially disrupting Amazon's delivery network.

Off-coverage companies 2

Roadie, Inc.Private± Mixed
relevance

ShipMatrix Inc.Private± Mixed
relevance

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