Stock Prices During Recent Labor Strikes

On Tuesday, August 22, 2023, UPS workers – specifically, members of the Teamsters union – formally voted to approve a new contract that would include significant pay raises, an end to forced overtime, and air conditioning or cooling gear installed in all trucks. (The last one was a major objective for the employees, as delivery-van interior temperatures during summer months can routinely exceed 120°F, or 48.9°C). The five-year deal, tentatively reached on July 25, definitively puts an end to a serious potential risk to the U.S. supply chain. Federal statistics suggest that UPS is responsible for shipping approximately 5% of US GDP. On a daily basis, it handles about $3.8 billion worth of goods. By the end of the contract in five years, the average UPS driver will be earning $170,000 in compensation a year, including pay and benefits. 

It has been a busy year for labor action. At the time of publication, Hollywood remained shut down amidst dual strikes by the actors’ union (SAG-AFTRA) and the writers’ union (Writers Guild of America). This is the first time both unions have struck at the same time since 1960. (The head of SAG at the time was future President Ronald Reagan.) 

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