Shares of United Parcel Service Inc. dropped for the first time in seven sessions Wednesday, after the union representing more than 340,000 employees said the delivery giant “walked away” from the bargaining table after its labor contract offer was unanimously rejected.
The International Brotherhood of Teamsters said, following “marathon” negotiations, that UPS
UPS,
refused to give the union a “last, best and final offer,” as the company said it had nothing more to give.
“This multibillion-dollar corporation has plenty to give American workers — they just don’t want to,” said Teamsters General President Sean O’Brien. “UPS had a choice to make, and they have clearly chosen to go down the wrong road.”
UPS refuted the union’s claim, saying it did not walk away from the talks. The company said it was the Teamsters who have stopped negotiating.
“We’re proud of our offer,” UPS said in a statement. “It delivers wins for our people. The Teamsters should return to the table to finalize this deal.”
UPS’s stock slumped 2.0% in morning trading. It had run up 8.6% amid a six-day win streak through Monday, which was the stock’s best six-day performance since it surged 8.7% over the six-day stretch that ended Nov. 11, 2022.
The win streak was the longest since the eight-day streak that ended March 6, 2023.
The Teamsters have “repeatedly made clear” that its members won’t work past the expiration of the current labor contract on July 31, if a new contract isn’t reached. The union said that in June, 97% of its members authorized a strike.
“We have nearly a month left to negotiate,” UPS said. “We have not walked away, and the union has a responsibility to remain at the table.”
UPS stock has lost 4.9% over the past three months, while the Dow Jones Transportation Average
DJT,
has climbed 11.4% and the Dow Jones Industrial Average
DJIA,
has gained 2.5%.
This story originally appeared on Marketwatch
