Labor negotiations between UPS and the union representing about 340,000 package delivery and warehouse employees stalled July 5 after the parties failed to reach a deal on pay increases, pay structure, safety and health concerns, and managerial harassment protections.

If the new agreement isn’t met by the end of the month, the union will likely strike in an action authorized last month.

“Such a labor action would be the first since 1997 for UPS workers, in a strike that lasted 15 days, cost the company $850 million and sent some customers to rivals,” Reuters reported. The Wall Street Journal also reported that the strike could harm the supply chain of many companies.

Both parties have accused the other of walking away from the bargaining table in separate announcements. The International Brotherhood of Teamsters said its UPS Teamsters National Negotiating Committee rejected a package unanimously because it did not address the union member’s needs.

AFTER MARATHON SESSIONS, UPS NEGOTIATIONS COLLAPSE

Around 4AM, UPS walked away from the bargaining table after presenting an unacceptable offer to the Teamsters that did not address members’ needs. The UPS Teamsters Nat’l Negotiating Committee unanimously rejected the package pic.twitter.com/LKtjz4jI9I

— Teamsters (@Teamsters) July 5, 2023

UPS officials said they have until July 31 before the current contract expires. Teamster General President Sean O’Brien said in a June 30 news release that the teamsters will not work “one minute beyond the expiration” of the contract.

“Refusing to negotiate, especially when the finish line is in sight, creates significant unease among employees and customers and threatens to disrupt the U.S. economy,” UPS officials said of the stalled negotiations. The company said it has not “walked away, and the union has a responsibility to remain at the table.”