A tentative labor deal between United Parcel Service and the Teamsters union on Tuesday could pressure full-year outlook for the world's largest parcel delivery firm, according to analysts.
A UPS delivery van is driven long a city street in Garden Grove, California, U.S., March 29, 2022. REUTERS/Mike Blake/File Photoand the Teamsters union on Tuesday could pressure full-year outlook for the world's largest parcel delivery firm, according to analysts.
UPS shares closed down 1.9% on Tuesday signaling investor worries about the labor deal's impact on costs. The company's workers have until Aug. 22 to vote on the tentative deal. "Considering a backdrop of meaningful inflation, we believe UPS will need to deliver on pricing gains and productivity to provide visibility to margin performance looking forward," UBS analyst Thomas Wadewitz said.
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