UPS workers have ratified a new contract that ensures higher wages and eliminates the possibility of a major strike. The International Brotherhood of Teamsters announced that approximately 86% of voting members approved the contract, which covers around 340,000 UPS workers in the United States. As part of the agreement, UPS drivers will receive an average annual pay and benefits of $170,000 by the end of the five-year contract. This vote is the highest in favor of a contract in the history of the Teamsters at UPS, according to the union.
In a press release, Teamsters general president Sean M. O’Brien expressed excitement about the contract, stating, “Our members just ratified the most lucrative agreement the Teamsters have ever negotiated at UPS. This contract will improve the lives of hundreds of thousands of workers.” Additionally, the Teamsters general secretary-treasurer Fred Zuckerman described the five-year contract as the “richest” he has seen in 40 years.
The new UPS contract includes several benefits for workers. Full- and part-time union members will receive an increase of $2.75 per hour in wages in 2023. Part-time hires will start at $21 per hour and gradually advance to $23 per hour with wage increases reaching $7.50 per hour throughout the contract. The agreement also ensures in-vehicle air conditioning and cargo ventilation, designates Martin Luther King Jr. Day as a full holiday for the first time, and eliminates forced overtime.
Despite the positive outcome, not all workers are content with the contract. Some, like Jose Francisco Negrete, a package handler based in Anaheim, California, feel that the $21 hourly wage for new part-time hires is insufficient and dubbed it “poverty pay.” Negrete and others had been advocating for a $25 hourly minimum for part-timers.
In addition to the national master agreement, more than 40 supplemental agreements were ratified, except for one agreement covering approximately 170 Florida union members. The national master agreement will take effect once it is renegotiated and ratified, as stated by the Teamsters.
Experts suggest that a 10-day strike by UPS workers could have cost the U.S. economy over $7 billion and resulted in long-lasting damage to both the company and its employees. Fortunately, with the ratified contract, UPS avoids such repercussions and ensures stability for its workforce.
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