UPS stock fell in premarket trading Wednesday after the logistics company and the Teamsters union failed to reach a contract settlement after an extensive negotiating session.
The failed talks leave 340,000 UPS workers at risk of going on strike starting August 1.
UPS and the Teamsters are negotiating to prevent UPS customers from shifting their business to competitors like the US Postal Service and nonunion FedEx (NYSE:FDX), according to reports.
While the two sides had previously reached an agreement on several issues, such as UPS committing to purchase air-conditioned delivery vans and retrofitting existing vehicles to reduce heat in the cargo area, the union unanimously rejected the company's recent economic offer, accusing UPS of breaking off talks.
Teamsters President Sean O'Brien criticized UPS for not providing American workers their due share of the multibillion-dollar corporation's resources. In response, UPS stated that it made a "historic offer" and urged the union to return to the negotiating table to avoid disruptions to the US economy.
The specific details of the economic offer and the union's demands remain undisclosed.
Shares of UPS were down around 1.6% before the bell Wednesday.
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