UPS has started training managers to keep packages moving in the event of a strike

• UPS and the International Brotherhood of Teamsters have just over two weeks to reach a deal.
• UPS representatives told some customers that managers will begin strike contingency training Friday.

The July 31 deadline for UPS and the union that represents 340,000 of its employees to agree on a new contract and avoid a strike is quickly approaching and both sides are ramping up preparations in case of a walkout.

UPS representatives told some customers Thursday that non-union management staff across the country would begin training for strike roles on Friday, according to a customer briefed on the plans by a UPS representative. The customer was required to sign a non-disclosure agreement in order to learn about the contingency plans.

UPS told the customer, a mid-sized retailer, that it's prioritizing which customers will still receive service in the case of a strike and warned that many packages will require extra transit time.

UPS is encouraging its sales representatives to protect package volumes at all costs and report customers considering taking their business elsewhere "immediately," according to an internal company document viewed by Supply Chain Dive.

Rival FedEx, on the other hand, has encouraged shippers to start working with them now rather than waiting for a strike. It has also warned delivery drivers about possible unrest should the Teamsters walk out.

UPS told customers it's still committed to reaching a deal by the deadline. Both parties have acknowledged that part-time pay is the final issue holding up an agreement.

"While we have made great progress and are close to reaching an agreement, we have a responsibility as an essential service provider to take steps to help ensure we can deliver our customers' packages if the Teamsters choose to strike," a UPS spokesperson told Insider via email. "Over the coming weeks, many of our U.S. employees will participate in training that would help them safely serve our customers if there is a labor disruption."

Training for a possible strike has no effect on current operations and does not change the company's efforts to reach a mutually-agreeable contract, the spokesperson continued.

The last time the Teamsters went on strike at UPS in 1997, any managers with the necessary licenses were asked to drive delivery trucks while other managers sorted and loaded packages.

Still, the 15-day strike cost the company a reported $850 million. UPS is much larger today, and so is the role of package delivery in American life. The costs of a strike next month could run in the billions, depending on its length, Reuters reported.

The Teamsters are preparing for a strike too, with members across the country participating in "practice picket lines" — marching with signs that say "Just Practicing for a Just Contract" and shouting "No Contract, No Peace!"