UPS Chief Says Year One of Pricey New Labor Deal Will Hurt Most
- Company faces initial cost jolt as pandemic-driven boom cools
- Tome seeks to win back lost customers, but not with discounts
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United Parcel Service Inc. will pay out the biggest portion of its new, five-year labor pact over the next 12 months while trying to win back customers it lost during the contentious contract talks, making for a challenging upcoming year, its chief executive said.
The company will offer some customer-service improvements and lean into automation, UPS Chief Executive Officer Carol Tomé said Monday in an interview. That could help it boost sales and save money as it covers the large, initial pay rise Teamsters secured in a labor deal that took effect in August.