UPS and the Teamsters Union have reached a tentative labor deal, which includes pay raises and other improvements for their workers. The agreement was made just in time to avert a strike that was looming if a deal could not be reached. The approximately 340,000 workers represented by the Teamsters Union are currently in the midst of voting on whether to accept the deal.
According to UPS CEO Carol Tomé, drivers will see an average of $170,000 in pay and benefits such as health care and pensions at the end of a five-year contract. This new agreement has effectively prevented a strike and has brought relief to both the company and its workers.
The tentative agreement affects a wide range of workers at UPS, including both full-time and part-time employees. Part-time workers’ wages will be raised to at least $21 an hour, addressing an issue that had been contentious during negotiations. Full-time workers will average $49 an hour, and an important provision of the agreement is the end to mandatory overtime on drivers’ days off.
The ratification vote on the deal began on Thursday and is set to conclude on August 22. UPS is hopeful that the new labor contract will be ratified within two weeks. However, the company has already adjusted its full-year revenue and margin forecasts to account for the impact of labor negotiations and the costs associated with the tentative agreement.
This labor deal comes at a time when there is a growing push for higher wages across various industries. Workers from pilots to aerospace manufacturing employees have been actively advocating for and successfully securing higher pay through labor negotiations. The UPS-Teamsters Union agreement is another example of this trend and highlights the importance of labor unions in advocating for fair compensation and improved working conditions for their members.