A UPS driver pulls away after completing a delivery in Washington, D.C.
Andrew Harrer | Bloomberg | Getty Images
The CEO of UPS announced that drivers will now earn an average of $170,000 in wages and benefits, including healthcare and pensions, under a new five-year contract negotiated with the Teamsters Union. This agreement successfully avoids a strike.
The newly proposed contract applies to approximately 340,000 employees within the package delivery company, who are currently in the process of voting whether to ratify the contract. The voting period began on Thursday and will end on August 22.
During an earnings call on Tuesday, UPS CEO Carol Tomé expressed confidence in the ratification of the contract within the next two weeks. In light of the ongoing labor negotiations and associated costs, the company adjusted its full-year revenue and margin forecasts.
The tentative agreement would also raise the minimum wage for part-time workers to $21 per hour, addressing a contentious issue during negotiations. Additionally, full-time workers will receive an average hourly wage of $49, and the agreement includes the elimination of mandatory overtime on drivers’ days off, according to details provided by the Teamsters Union.
It is worth noting that this deal reflects a broader trend of significant wage increases achieved through labor negotiations. From pilots to employees in the aerospace manufacturing industry, workers have been successful in advocating for and obtaining higher pay.
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