LOS ANGELES, Feb 17 (Reuters) - Coyote Logistics, United
Parcel Service's nonunion freight brokerage subsidiary,
on Friday said it was laying off workers as rising interest
rates, inflation and a resumption of pre-pandemic consumer
spending patterns weaken demand for trucking services.
Chicago-based Coyote did not say how many employees would be
affected. A Feb. 16 report from transportation news provider
FreightWaves said 200 jobs would be eliminated.
Logistics and transportation providers like UPS, FedEx , CH Robinson , Flexport and Uber Freight added
thousands of workers early in the COVID-19 pandemic, when
sheltering-at-home consumers splurged on big-screen televisions,
computers, patio furniture and home exercise equipment.
That demand slowed when restaurant dining reopened, travel
resumed and global economies started flashing recession
warnings, and now those same companies are slashing jobs.
UPS is also cut union jobs in its mainstay delivery service.
Affected unionized workers with seniority have the option of
leaving the company or taking a different role, which could mean
that employees with less seniority lose their positions.
The UPS cuts come as the company and the Teamsters union
representing roughly 350,000 UPS drivers, loaders, package
sorters and other employees gear up for national labor contract
talks beginning on April 17. The current UPS contract expires on
July 31.
"We are working with our local unions to assess the full
situation (regarding layoffs). UPS will have to answer should
they take any actions that impact our members' livelihoods," the
union said in an emailed statement on Friday.
(Reporting by Lisa Baertlein;
Editing by Sandra Maler)
Messaging: lisa.baertlein.thomsonreuters.com@reuters.net))
