Shipping giant UPS and the International Brotherhood of Teamsters have reached a preliminary agreement that is expected to prevent a nationwide strike.
This five-year deal, which still requires ratification, has received unanimous endorsement from the union’s negotiating committee. The proposed contract includes substantial raises for workers, making it highly appealing.
Teamsters President Sean O’Brien expressed his satisfaction with the agreement, stating, “We demanded an outstanding contract and UPS has delivered. Through these negotiations, UPS has committed $30 billion in new funds.”
In a statement, UPS described the agreement as a “win-win-win” situation.
According to UPS CEO Carol Tomé, the contract rewards employees with competitive pay and benefits while maintaining the necessary flexibility to serve customers and remain competitive.
The current contract is set to expire on August 1st. Prior to reaching this tentative agreement, negotiations had broken down due to the union’s demand for better economic terms for employees.
This contract between UPS and the Teamsters is the largest private-sector union agreement in the country, covering approximately 340,000 workers. It has the potential to impact working conditions at other companies competing with UPS for workers.
A nationwide strike at UPS would have far-reaching implications for the economy since its competitors would not be able to quickly absorb the lost business.
Prior to the tentative agreement, UPS and the union had already reached several significant agreements. These included installing air conditioning in all new delivery trucks starting next year and eliminating the controversial “two-tier” compensation system. Both measures were important to the union.
However, certain issues remained unresolved, such as the starting pay rate for part-time workers. The announcement of a tentative agreement suggests that union leaders were successful in convincing the company to improve its economic offer.
The union outlined the highlights of the proposed contract, including substantial raises for full- and part-time workers over the course of five years. Part-time workers would receive an immediate raise to at least $21 per hour, and the top rate for full-time drivers would increase to $49 per hour.
Additionally, the contract aims to improve work-life balance for workers who do not wish to work additional hours, ensuring that they are not forced into overtime on scheduled off-days.
Union members will have the opportunity to vote on the contract after receiving detailed explanations of its contents. Voting will take place between August 3rd and August 22nd.
If the tentative agreement is rejected, negotiators may return to the table to secure a better offer.
Despite this possibility, Teamsters President Sean O’Brien expressed confidence in the membership’s approval, stating that the contract sets a new standard in the labor movement and raises the bar for all workers.
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