Talks centered on establishing a new contract for unionized United Parcel Service (UPS) workers took a contentious turn this week when Teamster leaders walked away from the bargaining table – at least temporarily.

The negotiators, who represent about 340,000 unionized UPS package delivery drivers and logistics employees, have demanded that the delivery service provider present a “last, best and final offer” on a new contract by Friday, June 30.

UPS workers have authorized a strike to begin on Aug. 1 if a new contract isn’t reached by July 31 – the end of the current contract. Strike authorizations are a common tactic used to gain leverage in negotiations and don’t mean a strike is guaranteed.

Analysts have said the demand for a “final offer” could be part of a union strategy that would involve rank-and-file members rejecting the deal, which would help Teamster negotiators fight for a more favorable contract for workers in the final weeks before the strike deadline.

“Unions putting a company’s offer up for a vote of its membership in an effort to show it would not be ratified is not an uncommon negotiating tactic,” CNN reported.

Should the UPS Teamsters stop working, it would be the largest strike against a single employer in American history. The strike would cripple the operations of an essential delivery service provider that promotional products companies – and the U.S. economy more broadly – rely upon.

While Teamsters President Sean O’Brien has said a strike “appears inevitable,” certain analysts think that could be another negotiating tactic aimed at ramping up pressure on UPS. Executives for UPS continue to state that a new contract will be reached before the strike deadline.

Yep, this would be terrible but a strike is NOT yet imminent. Details on where things stand.

UPS Workers Authorize Strike If New Contract Not Reached by End of July https://t.co/HNR7C1UxdY

— Chris Ruvo (@ChrisR_ASI) June 16, 2023

“Last week, we provided our initial economic proposal,” UPS stated. “This week we followed with a significantly amended proposal to address key demands from the Teamsters. Reaching consensus requires time and serious, detailed discussion, but it also requires give-and-take from both sides. We’re working around the clock to reach an agreement that strengthens our industry-leading pay and benefits ahead of the current contract’s expiration on August 1. We remain at the table ready to negotiate.”

There has been progress in the talks. Teamsters have acknowledged that agreements have been reached on 55 non-economic issues, including that air conditioning will be installed in new delivery vans that UPS purchases.

UPS is a partner in ASI’s Business Savings Program, which offers members exclusive deals. ASI leaders have been following the negotiations.

“While we respect the rights of workers to voice their concerns and take collective action, we also understand the difficulties faced by ASI members navigating what could become an economically challenging period,” said Timothy M. Andrews, president and chief executive officer of ASI. “We hope for a speedy resolution to contract talks and will continue to closely monitor the situation. If a strike were to occur, it will not affect our affiliate relationship with UPS and, once settled, ASI will continue to offer UPS shipping discounts through our ASI Business Savings Program.”