Analysts eye UPS automation efforts to offset increased wage costs

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Analysts eye UPS automation efforts to offset increased wage costs - Yahoo

Higher labor costs during the pandemic-plagued holiday season may erode the profits of United Parcel Service, the world's biggest package delivery firm, which is set to report quarterly earnings on Tuesday.

Investors will be watching for the margin impact from the company's mostly unionized delivery workforce. UPS hired nearly 100,000 people for the holiday season and plans to keep a portion of those workers on board.

The company increased worker pay in certain regions to an average of $18 per hour from $15, it said in June.

Union pay and benefits for UPS drivers, sort center workers and package loaders generally exceed those at non-union shops like Amazon.com, UPS's largest customer and a growing delivery rival.
 
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