UPS employees approve new labor contract featuring substantial pay raises

UPS







workers have unanimously ratified a five-year labor contract that brings significant wage increases and various enhancements to work rules and schedules, as announced by the International Brotherhood of Teamsters on Tuesday.

The contract vote received an 86.3% approval, marking the highest ever recorded in Teamsters history for a UPS contract, according to the union.

“By setting new standards for pay, benefits, and working conditions in the package delivery industry, the Teamsters have established a blueprint for the national compensation and protection of workers. Nonunion companies like Amazon should take note,” commented Teamsters General President Sean O’Brien in a statement.

The preliminary deal between UPS and the Teamsters union, representing approximately 340,000 workers at the delivery giant, was reached last month just before the expiration of the previous contract on July 31, effectively avoiding a potentially damaging strike that could have had repercussions throughout the entire U.S. economy.

According to the U.S. Chamber of Commerce, UPS handles $3.8 billion worth of goods per day, which accounts for about 5% of the country’s gross domestic product.

The parties had until July 31 to reach an agreement and prevent a work stoppage. Voting on the new contract began on August 2. The agreement is the largest collective bargaining deal ever reached in the private sector, as stated by the union.

As per the union, part-time workers will now receive a minimum wage of $21 per hour, up from the current minimum of $15.50. Part-time pay was a key point of contention during labor negotiations. Full-time workers will earn an average of $49 per hour. Current employees will receive a wage increase of $2.75 per hour this year and an additional $7.50 per hour over the course of the five-year contract.

CEO Carol Tomé revealed that by the end of the five-year agreement, UPS drivers will earn an average of $170,000 in pay and benefits during an earnings call earlier this month.

The company has adjusted its full-year revenue and margin forecasts, citing the impact of labor negotiations on volume and the costs associated with the tentative agreement.

Following the pandemic and record-high inflation, the union is the latest labor organization to advocate for improved pay, schedules, and work regulations from leading U.S. corporations.

American Airlines pilots recently confirmed a four-year deal, including approximately 46% increases in compensation and 401(k) contributions. This agreement was sweetened by the carrier after United Airlines reached a more lucrative agreement with its pilots’ union. Earlier this year, pilots at Delta Air Lines also approved their deal, which entailed over 30% wage increases.

Southwest Airlines has yet to reach an agreement with its pilots’ union, and a potential strike is a possibility. However, under U.S. laws, work stoppages in the airline industry are extremely rare.

FedEx pilots rejected a tentative agreement for a new labor contract earlier this summer.

This is breaking news. Check back for updates.