After months of intense negotiations and the possibility of a damaging strike, UPS and the International Brotherhood of Teamsters have reached a tentative agreement on a new contract. The deal, which is estimated to cost UPS $30 billion, includes major improvements for workers, such as the creation of thousands of new full-time positions and the end of forced overtime on scheduled days off. Teamsters President Sean O’Brien sees the agreement as a “new standard in the labor movement” that raises the bar for all workers. UPS CEO Carol Tomé also praised the deal for its industry-leading pay and benefits.
Public reactions to the new contract have been mixed, with some expressing positivity and others expressing negativity. The union will announce the results of the workers’ vote on August 22, and if the contract is voted down, the union may go on strike. However, with the endorsement of 161 out of 162 local Teamsters unions, it is likely that the agreement will pass.
Labor experts view the UPS contract as crucial because it has the potential to influence what workers across the country can expect from their employers in the future. By demonstrating that workers at one company can secure improvements, it strengthens the argument for workers at other companies to demand the same.
There are five key wins in the deal that could shape the future of work in America. Firstly, all 340,000 UPS employees, including part-timers, will receive significant pay raises over the next five years. Secondly, Teamsters hope to use the gains in the contract to inspire nonunion workers to unionize, especially at Amazon, where average pay for delivery drivers is lower. Thirdly, part-time UPS employees will see the biggest pay bumps, with their minimum pay immediately jumping to $21 an hour. Fourthly, UPS will install air-conditioning in its delivery vans and retrofit older vans with heat shields and fans to address safety concerns. Lastly, UPS has agreed to end a two-tier wage program for its delivery drivers, which caused resentment among employees.
The UPS contract also includes the creation of 7,500 full-time positions by combining part-time jobs, addressing the issue of part-timers only being guaranteed three-and-a-half hour shifts. Additionally, UPS drivers have secured a victory against surveillance technology with the elimination of driver-facing cameras in delivery vans and a ban on the use of driverless vehicles or drones without union negotiation.
Overall, the UPS contract represents a significant step forward for workers’ rights and has the potential to inspire other workers to demand similar improvements in their own workplaces.
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