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UPS Inc. and its union will resume labor talks July 25 after negotiations had stalled earlier this month as the company seeks to head off a strike that could occur as early as Aug. 1.

The pilots union at Sandy Springs, Ga.-based UPS Inc. plans to honor picket lines in the event of a Teamsters strike against the shipping giant.

UPS Inc. plans to train nonunion employees to deliver packages in the event of a labor disruption in the U.S., underscoring the potential for a strike as a crucial negotiating deadline nears.

UPS Inc. investors will wait longer than usual to hear from CEO Carol Tomé this quarter as the company works to avoid a harmful worker strike.

A strike by UPS workers if a new labor agreement isn’t reached with the Teamsters would hold significant implications across the supply chain, industry analysts said.

Negotiations on a new labor deal between UPS Inc. and the Teamsters stalled July 5 after showing promise over the weekend, renewing concern that workers could strike at the end of the month.

In contract negotiations between UPS Inc. and the Teamsters, the two sides have come to agreement on dozens of matters to clear the way for talks on pay and other major issues.

UPS Inc.’s unionized workers voted in favor of giving Teamsters leaders the option to call a strike as the two sides continue talks to renew a five-year labor contract.

The International Brotherhood of Teamsters says UPS Inc. has agreed to equip its delivery and logistics vehicles with air conditioning systems, a key point in contract negotiations. 

UPS Inc.’s union workers will hold a vote on whether to grant authorization to Teamsters leaders to call a strike after the current five-year contract lapses.