The world’s largest package delivery company, which earns the largest chunk of its revenue during the fourth quarter that includes the festive season, said it was filling full- and part-time seasonal positions by across shifts in hundreds of locations across the country.
Both UPS and rival FedEx Corp (NYSE:FDX) hire thousands of temporary workers each year to move more parcels between the months of October and January.
Hiring at UPS comes against the backdrop of a new five-year contract, covering some 340,000 Teamsters-represented workers in the U.S., which would increase wage and benefit costs for the company.
Last month, the Atlanta-based firm cut its full-year revenue and profitability targets, citing higher-than-expected labor costs as well as business lost during the tumultuous contract talks with Teamsters union.
UPS executives said in August that customers shifted 1 million packages per day to other providers, resulting in about $200 million in lost sales. They estimated that roughly a third of that volume landed with FedEx.
Analysts expect holiday sales to grow at a slower pace this year as high inflation eats into household budgets.
A report from career consultancy firm Challenger, Gray & Christmas showed that weaker spending and increased labor costs would result in U.S. retailers hiring the lowest number of seasonal workers this year since 2008.
Source: Economy - investing.com
