UPS CEO Assures Investors of New Labor Contract Amid Stock Slide and Peak Delivery Surcharges
UPS CEO Carol Tome has emphasized that the costs incurred by the company for the new Teamsters labor contract are less than the "$30 billion in new money" claimed by the union, as the company seeks to reassure investors. The contract, which was reached in July, prevented a potentially disruptive work stoppage. Despite this, UPS shares have fallen over 14% since the announcement. Tome believes that the contract is cost-effective and fair, with 46% of the compensation occurring in the first year. She also highlighted the importance of work/life balance and the ability to deliver on weekends for customers. Looking ahead, Tome is focused on implementing her "Better and Bolder" strategy, which involves modernizing and maximizing profits through automation and innovation.