In 1997, operations at United Parcel Service (UPS) were severely hampered when unionized drivers and truck loaders went on strike. Before the strike, UPS did not appear to be a likely candidate for a strike. The company had worked collaboratively with the Teamsters Union for 82 years—ever since UPS founder Jim Casey extended the invitation to the teamsters, saying that employees could be both good Teamsters and good "UPSers." After a stormy two-week strike, a settlement was reached and a new contract was signed. Recognizing the importance of individual contact between customers and drivers, the company was careful not to create negative images of its striking drivers during and after the strike. The company concentrated not only on rebuilding its customer base but also on rebuilding the relationship with its employees. First up was a video presentation to employees by chairman and CEO James Kelly. The theme of the video was to move forward and concentrate on what the company does best—deliver packages. At this same time, the management team held meetings in all of the 60 UPS districts around the country. They met with employees and held question-and-answer sessions. Despite all the efforts by top management to diffuse hard feelings, relations between first-level supervisors and employees have continued to be strained in some areas. Many supervisors who crossed the picket lines to keep the company going were subjected to harsh language and even threats. Some of these supervisors have found it hard to forget.

The 1997 strike was still having repercussions five years later in the spring and summer of 2002. During this time, UPS's volume of business fell significantly because of a threatened strike by the Teamsters. Mindful of the 1997 strike and as a precautionary act, many customers took their business elsewhere. A strike was averted and many of the customers came back—but not all.

On November 22, 2005, employees of UPS in Canada went on strike. Even though the strike was resolved in 24 hours and represented a relatively small number of employees, the strike was disruptive.

In early 2005, UPS pilots threatened a strike if certain concessions were not made by the company. Negotiations continued throughout the year and were not resolved as of December 2005.

Sources: Robert J. Grossman, "Trying to Heal the Wounds," HR Magazine, September 1998, pp. 85–92; Richard Thompson, "Some United Parcel Customers Fear Strike, Turn to Other Carriers," Knight Ridder Tribune Business News, July 24, 2002, p. 1; "UPS Canada Resolves Strike," Materials Management and Distribution, December 2004, p. 13; and "UPS, Pilots Plan New Talks," Journal of Commerce, November 8, 2005, p. 1.