The International Brotherhood of Teamsters, the union representing over 300,000 United Parcel Service (UPS) employees, announced on Tuesday that its members have ratified a new labor agreement with the shipping giant, averting a potentially damaging strike to the U.S. economy. The five-year contract received more than 86 percent support from UPS members.
According to the Teamsters, the agreement includes significant wage gains for current employees, with a minimum increase of $7.50 per hour over the contract term. It also raises the minimum pay for part-time workers to $21 per hour, up from under $17, and establishes a higher top rate for full-time delivery drivers at an average of around $49 per hour. In comparison, under the previous contract, full-time drivers made an average of about $42 per hour after four years on the job.
Union president Sean O’Brien hailed the contract as the most lucrative ever at UPS and emphasized its importance as a model for other workers the union aims to organize. O’Brien stated, “This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.”
While the new UPS contract has been ratified, it will not take effect immediately. The union revealed that a group of workers in Florida voted down a supplement to the national contract, affecting about 175 members out of the 44 supplements negotiated. The union’s negotiators will engage with UPS to address the remaining issues so that the Florida members can vote again. The national contract will become effective once the supplement is approved.
UPS declined to provide further comment apart from a brief news release acknowledging the ratification vote and assuring that the Florida supplement would be “finalized shortly.”
In recent months, the Teamsters have adopted an aggressive approach in mobilizing members and applying pressure on the company, including picket-line practice and training sessions for strike captains. O’Brien’s strong rhetoric, referring to corporate leaders as a “white-collar crime syndicate,” has further underscored the union’s determination to secure favorable terms for its members. Despite labor disputes, UPS remains a significant player in the shipping industry, handling approximately one-quarter of the daily packages shipped in the United States, as reported by the Pitney Bowes Parcel Shipping Index. The company’s adjusted net income surged over 70 percent from 2019 to 2022, surpassing $11 billion.
Negotiations for the national contract commenced in April, and in mid-June, the union announced that its members had overwhelmingly authorized a strike. However, numerous key issues were resolved by early July, including the elimination of a lower-paid category of full-time drivers and the inclusion of air conditioning in new trucks for heat safety. Nevertheless, negotiations stalled as the Teamsters felt that the company’s proposed pay improvements for part-time workers fell short. The ensuing weeks saw public condemnation of what was labeled as “part-time poverty” jobs by O’Brien and the union. Talks resumed in late July, leading to the swift finalization of a tentative deal.
The agreement underwent voting by UPS employees represented by the union in early August. While some part-time workers believed the wage gains should have been larger and advocated for a “no” vote, the final margin indicated that most employees were content with the proposed terms.
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