NCPA - National Center for Policy Analysis

Rank-and-File Hurt Most in UPS Strike

August 28, 1997

Economic analysis shows that the recently settled United Parcel Service strike hurt rank-and-file workers the most -- even though they appear to have won.

  • Drivers lost up to $3,000 in pay -- money they will never get back.
  • Profit-sharing bonuses UPS originally offered were lost, valued at $1,500 to $3,000 per worker.
  • UPS estimates about 15,000 workers will lose their jobs through layoffs because of a permanent 5 percent reduction in business.

The strike did not reduce the number of part-time workers:

  • UPS's pledge to add 10,000 more full-time jobs was conditioned on volume increases -- while the strike decreased volume.
  • Even if these jobs were added, the number of part-time workers would decrease by only 2 percent, from 57 to 55 percent.
  • Forty percent of UPS's part-time workers are college students, and a number are parents with young kids.
  • The bulk of the part-time workers actually prefer the flexibility in hours over the time restraints of a full-time job.


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