More companies, especially airlines, warn higher costs will eat into profits

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UPS and airlines are digesting big new labor deals, while Hollywood and the auto industry are at odds with unions.

associated with the deal and said it the expenses from it will increase at 3.3% compound annual growth rate over the next five years.

"Year one costs more than we originally forecast," said Brian Newman, the company's CFO, said on an investor call this week. He said it will cost $500 million more in the back half of 2023 than expected, he said.labor talks for new labor deals, setting up"likely" strategic strikes at the companies after an 11:59 p.m. ET Thursday deadline, UAW President Shawn Fain said Wednesday night. The union has sought more than 30% hourly pay increases, a reduced 32-hour work week, and other improvements.in May and mid-July, respectively, with members demanding better pay to match changing industry dynamics in the entertainment-streaming era.

American Airlines offered flight attendants 11% pay increases the date a new contract starts, and 2% raises after that. But the Association of Professional Flight Attendants said the union wants 35% increases at the start of a new deal, followed by 6% annual raises.in recent years since the Covid pandemic derailed talks.

Strong travel demand has helped the largest carriers more than cover their higher expenses. But some carriers are seeking cracks in sales just as a slower travel period after summer begins.

 

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