UPS and Teamsters Reach Tentative Deal, Potentially Avoiding Strike
Philadelphia, CNN – After intense negotiations, UPS and the Teamsters union have reached a tentative deal on a new contract, potentially avoiding a strike that could have had disastrous consequences for the US economy. The threat of a labor stoppage had loomed, and it could have crippled supply chains and resulted in multi-billion dollar losses.
Teamsters President Sean O’Brien expressed satisfaction with the agreement, stating, “We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession. This contract sets a new standard in the labor movement and raises the bar for all workers.”
The agreement comes amidst a period of increased empowerment and energy within the American labor movement. The pandemic sparked a surge in pay for lower- and middle-class US workers, but contract workers missed out on many of these gains. In response, various unionized workers, including actors, writers, nurses, teachers, and UPS workers and autoworkers, have engaged in strikes and threatened walkouts.
UPS CEO Carol Tomé praised the agreement, saying, “Together we reached a win-win-win agreement on the issues that are important to Teamsters leadership, our employees, and to UPS and our customers. This agreement continues to reward UPS’s full- and part-time employees with industry-leading pay and benefits while retaining the flexibility we need to stay competitive, serve our customers, and keep our business strong.”
The tentative agreement still needs to be ratified by approximately 340,000 Teamsters at UPS to completely eliminate the threat of a strike. The ratification process will take slightly over three weeks. A rejection from the membership could still trigger a strike, although it would now be postponed until late August, rather than the original August 1 deadline.
The agreement has garnered positive responses from UPS workers, who believe it will be beneficial not only for them but for workers across various industries. Ryan Boyd, a part-time UPS worker, stated, “I think if the tentative agreement is consistent with the terms The Teamsters have laid out over the last few months, then I think this is really going to be a historic agreement that is beneficial not just for UPS workers but workers in the industry and workers in general.”
Avoiding a strike is crucial for UPS, which handled an average of 20.8 million packages per day last year. While there is some excess capacity at FedEx, the US Postal Service, and Amazon’s own delivery service, it was unlikely that all the packages could have been accommodated by these alternatives in the event of a strike.
President Joe Biden praised the tentative deal, noting, “This agreement is a testament to the power of employers and employees coming together to work out their differences at the bargaining table in a manner that helps businesses succeed while helping workers secure pay and benefits they can raise a family on and retire with dignity and respect.”
The threat of strikes in various industries has become a concern for businesses as workers demand better pay and working conditions. It remains to be seen whether the UPS-Teamsters agreement will be ratified and put an end to the looming strike threat.