Unprotected by a union, managers at UPS take the hit for lost revenue

On the heels of a historic deal with its 350,000-strong workforce that delivered to drivers a six-figure salary and benefits (and which Tomé herself praised) it seems as if 2024 is starting off as a disappointing year, to say the least, for UPS managerial staff. In an attempt to save $1 billion amid sinking revenue, executives at UPS are culling 14% of full- and part-time managers and contractors. 

Tuesday’s announcement reveals a split between the fates and fortunes of blue-collar workers and their office counterparts. With the backing of the largest union in the nation, the Teamsters (whose single largest contract is with UPS), blue-collar workers have succeeded in getting the stability and benefits that white-collar employees are now losing. The cushy corporate jobs that used to be seen as a pathway to wealth have experienced a bit of a swingback lately from their heights in the 2010s—look no further than the recent rounds of layoffs amid once high-flying tech companies.

Most of UPS’s earnings call dirge was focused on slipping profits, as consolidated revenue decreased by 9.3% last year, a fall company top dogs blamed on the economic climate and lower demand for small packages. The company also mentioned the drivers’ fight for better wages and benefits, with Tomé claiming the “disruption associated with our labor contract negotiations as well as higher costs associated with the new…