A threatened strike by 340,000 drivers against UPS could be the result most expensive in US historyaccording to an analysis by the Anderson Economic Group (AEG).
According to reports, a 10-day strike would result in a total economic loss of over US$7 billion. Over $1 billion would be lost in direct wages, while UPS is expected to incur $816 million in losses. Direct economic losses would exceed $1.9 billion. According to reports, UPS customers would suffer more than $4 billion in losses.
Other disruptions of comparable magnitude over the past 100 years include the 2019 UAW strike against GM, the 1970 postal workers strike, the 1992 rail strike, and the 1959 steel union strike.
“In addition to potentially serious consequences for those who need those supplies, such a business disruption could prove very costly due to the need for intervention and emergency medical services,” said AEG analyst Shay Manawar.
To determine the economic impact of a potential UPS strike, AEG estimated losses, which included lost wages for workers, lost profits for UPS, and direct losses to consumers that cannot be offset by goods replacement, as well as lost goods, services and wages of workers in other industries. The organization’s consultants used the same methodology used to estimate the impact of the 2019 UAW strike, two West Coast port closures, the 2022 Turkey-Syria earthquake, and other significant events in the company’s 27-year history.
