Title: UPS Workers Ratify New Five-Year Contract, Avoiding Potential Strike
By Lisa Baertlein
Los Angeles, CA – United Parcel Service (UPS) workers in the United States have ratified a new five-year contract, according to the Teamsters union. The overwhelming majority of voting members, 86.3%, chose to approve the agreement, which covers around 340,000 UPS employees.
The ratification of the contract has put an end to the possibility of a strike that could have disrupted timely Christmas deliveries and caused shipping costs to skyrocket. UPS, based in Atlanta and the world’s largest package delivery company, handles approximately 25% of all parcel deliveries in the U.S. and serves virtually every city and town in the country.
“The agreement passed by the highest vote for a contract in the history of the Teamsters at UPS,” stated the union, although they did not disclose the exact percentage of members who voted.
The new contract brings several improvements for UPS workers. It raises pay and eliminates the two-tier wage system for drivers. Additionally, it includes the provision of another paid holiday, puts an end to forced overtime, and promises that new models of UPS trucks will be equipped with air conditioning starting next year.
Teamsters General President Sean M. O’Brien hailed the agreement as a significant milestone. He said, “Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry. This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.”
The elimination of seniority-based wage tiers, which pay new hires less than veteran workers, has been a central issue in labor negotiations for other unions, including the UAW-Detroit Three. UPS, as the largest private-sector employer of unionized workers in the U.S., ending this cost-saving scheme could be a major victory for unions and a potential setback for companies.
Unions representing “essential” transportation workers, such as pilots, port workers, and delivery drivers, are currently enjoying increased bargaining power due to a tight labor market and stronger public support for unions. In July, pilots at UPS rival FedEx rejected their tentative contract.
The contract negotiations between UPS and the Teamsters were accompanied by concerns about higher-than-expected labor costs and business lost during the talks. As a result, UPS had to revise its full-year revenue and profitability targets earlier this month.
Under the new contract, current full- and part-time UPS workers will receive wage increases of $2.75 per hour in 2023, and an overall increase of $7.50 per hour over the contract’s duration, according to the Teamsters. Part-time workers will see double the general wage increases compared to the previous UPS Teamsters contract, and existing part-time workers will receive an average total wage bump of 48%, addressing a crucial sticking point in the negotiations.
In a related development, UPS has also acquired licensing rights. This move is expected to open up new opportunities for the company.
Overall, this ratification marks a significant victory for UPS workers and the Teamsters union. The new contract ensures improved pay and working conditions for the employees of the largest package delivery company in the world, serving as a model for the industry as a whole.
Reporting by Lisa Baertlein in Los Angeles and Priyamvada C in Bengaluru; Editing by Paul Simao and David Gregorio
Lisa Baertlein covers the movement of goods around the world, with emphasis on ocean transport and last-mile delivery. In her free time, you’ll find her sailing, painting, or exploring state and national parks.
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