New York, CNN — Rank-and-file members of the Teamsters union have overwhelmingly ratified a five-year deal with UPS, putting an end to the threat of a crippling strike.
The union announced that 86% of members voted in favor of the contract, the largest margin in favor of a contract in UPS history. A record 58% of members participated in the vote.
The deal, reached on July 25, was voted in favor by union leadership with a 161-1 vote. Teamsters President Sean O’Brien called it “the best contract in the history of UPS.”
The five-year contract includes several key provisions that address the demands of the union. It includes across-the-board pay raises of $2.75 an hour, retroactive to August 1. Full-time workers will receive total raises of at least $7.50 an hour, or more than $15,000 a year, during the life of the contract. Additionally, the company will eliminate a lower pay scale for many of the workers hired since 2018.
Another important agreement is the company’s commitment to address the issue of delivery vans without air conditioning. While UPS did not agree to retrofit the existing vans, it will purchase only air-conditioned vans starting next year and make changes to reduce heat in the cargo area.
However, some groups of part-time UPS workers opposed the deal, citing the disparity in pay compared to full-time employees. Despite the opposition, the contract had widespread support among different classes of workers.
CEO Carol Tome expressed relief over the ratification vote, as it puts an end to the threat of a strike. Carol Tome believes that UPS will be able to win back any customers lost due to uncertainty during the negotiation process.
Shares of UPS saw little change in after-hours trading following the news.
– CNN’s Vanessa Yurkevich contributed to this report