Sunday, July 30, 2023

United Parcel Service Agreegent Sets Bar For All Wages

It is not my practice to rewrite and reissue a post but the rapid emergence of an agreement between the United Parcel Service (UPS) workers makes some of the background information in a recent article about a possible strike far less important. Still, the overall message remains clear and the company rolling over indicates a lack of resistance to granting higher wages. It could also be considered an acceptance of inflation and the fact it is expected to remain.

UPS has averted the biggest strike in 60 years. Still with the new agreement covering 340,000 workers it will have a huge impact on the economy. I contend the UPS agreement will set the bar for wages in America as other workers view it as a road map. Considering how many workers are ready for a fight and hungry for blood, this will impact wages and thus inflation all across America. In short, the UPS agreement has the potential to set off a self-feeding wage spiral loop. 
Yes, workers want it, and they want "it" now! The inflation of recent years has left many workers feeling cheated. It is common knowledge that studies show wages have not kept pace with the cost of living over the years. Much of the pain inflicted on Americans has taken place in just the last few years and that is why the private sector is strongly motivated to catch up. Today, even having a college degree is no longer a guarantee you will be able to get a good-paying job. 

It has been decades since workers have been so dissatisfied. This is why we are seeing more high-profile walkouts, examples are the Writers Guild of America, newly unionized Starbucks employees and those Amazon drivers represented by the Teamsters are starting to flex their muscles. Strikes and work stoppages have returned as a mainstay of U.S. news and are likely to stay for the foreseeable future. Do not be surprised if this rapidly expands into the area of government workers also calling for more.



Teamsters Report California Amazon Workers Began ULP Strike on June 24

Amazon is one of the companies that has painted a target on its back as a place organized labor will decide to key on. Part of this is because of its plans to destroy jobs through automation. Striking Amazon delivery drivers and dispatchers from Palmdale, Calif., have already extended their picket line to an Amazon warehouse (EWR5) outside of New York City.

This is part of an effort to raise awareness of their demands the e-commerce giant stop its unfair labor practices. The growing strike will continue until Amazon reinstates the unlawfully terminated Palmdale employees, recognizes the Teamsters, respects the contract negotiated by the workers, and bargains with the Teamsters Union to address low pay and dangerous working conditions.  

With the UPS agreement galvanizing big wage increases as a reality, it will be more difficult for other large companies to say no. It will also make it much harder for small struggling companies and the mom-and-pop small business sector to compete. This translates into a lot of small businesses closing or their employees slipping farther down the economic ladder. Still, following increased attacks on employees' collective bargaining rights, supporters of these rights are not in the mood for interference. 

The UPS agreement is an arrow in the heart of those "experts" expecting a wave of deflation ahead. As the previous article on this subject reported, the main takeaway from the UPS agreement is that inflation is tied directly to wages and labor costs. All businesses large and small will be affected with small businesses being hit the hardest. This translates into consumers having to pay more and workers demanding higher pay. We know that government workers will never lower their pay and unlike the private sector, it is not held back by an employer's ability to pay. Add government works to those screaming for more money. In short, get ready for higher everything.

Footnote; For more information on how a strike would have hurt the economy and the wage increase workers sought, see the link below:


(Republishing of this article welcomed with reference to Bruce Wilds/AdvancingTime Blog)

1 comment:

  1. Consumer rights to forever decreasing prices of goods and services driven by free market capitalism are not necessarily the best outcome for society.
    This is apparent when corporate profit share vs wages is at all time highs, but 50% of Americans can not afford a $1000 emergency.
    America thinks gratuities for low paid workers are a measure of their generosity but it may be a sign America a a society is too mean to pay half its workers a livable wage.