As if there weren’t already enough supply chain concerns, now add another: A strike by UPS drivers and warehouse workers could be on the horizon.

A work stoppage by the 360,000-member strong union could have significant effects for businesses across industries, including the promotional products market, that rely on UPS to deliver packages.

Prices for delivery services by competitors, such as FedEx, could skyrocket as transport capacity nationally becomes reduced. Delays in pick-up and drop-off by overstretched delivery providers, as well as the related likelihood of not being able to get branded products delivered by an end-client’s in-hands date, would all be potential problems.

The good news is the strike doesn’t appear to be imminent. The unrest from union members comes a year in advance of the July 31, 2023, expiration of a contract with which they’re unhappy.

Sean O’Brien, a Teamsters veteran and general president of the UPS union, said drivers and warehouse workers would walk off the job the day the current contract ends a year from now if a new favorable agreement has not been inked. Negotiations are expected to begin in a few months.

“Our union is resolved to win the best contract for UPS members and to reset the standards for wages and benefits in this industry by Aug. 1, 2023,” said O’Brien in a statement. “We won’t extend negotiations by a single day. We’ll either have a signed agreement that day or be hitting the pavement.”

UPS Teamsters are already signaling the sincerity behind that threat.

On Monday Aug. 1, they began a nationwide call to action with parking lot rallies, leafletting actions and other activities taking place at UPS centers throughout the country. Teamster local representatives, business agents and stewards are visiting UPS facilities nationwide and distributing informational resources to members, including materials on bargaining issues.

The Teamsters have reportedly compiled a $350 million strike fund to support workers.

While UPS drivers are the highest-paid in the last-mile delivery business, they’re unhappy with components of the current contract, which went into effect in 2019 based on a no-longer-in-play technicality (low voter turnout), despite the fact that most who did vote were not in favor of the agreement.

Goals for the new contract will include ending what the union described as excessive overtime, a two-tier wage 22.4 classification, subcontracting and driver-facing cameras. The union also wants higher pay for part-timers and more full-time jobs.

Asked about the situation by Insider, a UPS spokesperson said the company believes an agreement will be reached without a strike.

“UPS and the Teamsters have worked cooperatively for almost 100 years to meet the needs of UPS employees, customers and the communities where we live and work,” the spokesperson told Insider. “We have built UPS into the world’s leading package delivery company together, which has also bolstered Teamsters membership over the years. We believe we’ll continue to find common ground with the Teamsters and reach an agreement that’s good for everyone involved.”

Word on the looming UPS union contract battle comes amid other contentious contract talks for unionized workers that have potential to upend supply chains, should they come to strikes or lockouts. So toxic have negotiations between rail workers and rail lines become that the federal government had to intervene in July, preventing a work stoppage for at least two months as authorities help the sides toward a new deal.

Meanwhile, talks between a union representing West Coast port workers and maritime employers have now stretched more than a month past the expiration of the laborers’ previous contract. There’s been some progress, with the sides recently announcing they have a tentative agreement on health benefits. No job walk-off or lockout appears imminent, but a final done deal still looks to be a way off.

Work stoppages by delivery drivers, port workers and/or railroad employees can exacerbate supply chain issues that have plagued the global marketplace during the COVID-19 pandemic, contributing to ills like inflation and inventory shortfalls. Of late, there’s been worry that port congestion – a big problem for supply chains especially in 2021 – could worsen in the weeks ahead.