UPS Teamsters reach ‘historic’ agreement to avoid strike

July 26, 2023

Tyson Fisher

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The Teamsters and UPS have reached an agreement that affects more than 340,000 workers.

On Tuesday, July 25, the International Brotherhood of Teamsters announced the “most historic tentative agreement for workers in the history of UPS.” According to the Teamsters, the contract raises wages for all workers, creates more full-time jobs and includes dozens of workplace protections and improvements.

“Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits,” Teamsters General President Sean M. O’Brien said in a statement. “Teamster labor moves America. The union went into this fight committed to winning for our members. We demanded the best contract in the history of UPS, and we got it. UPS has put $30 billion in new money on the table as a direct result of these negotiations. 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.”

According to the five-year deal, existing full- and part-time UPS Teamsters will get $2.75 more per hour in 2023.

Over the length of the contract, wage increases will total $7.50 per hour. Existing part-timers will be raised up to no less than $21 per hour immediately, and part-time seniority workers earning more under a market rate adjustment would still receive all new general wage increases. New part-time hires at UPS would start at $21 per hour and advance to $23 per hour.

Wage increases for full-timers will keep UPS Teamsters the highest-paid delivery drivers in the nation, improving their average top rate to $49 per hour. Current UPS Teamsters working part-time would receive longevity wage increases of up to $1.50 per hour on top of new hourly raises, compounding their earnings.

Safety and health protections, including vehicle air conditioning and cargo ventilation.

UPS will equip in-cab air conditioning in all larger delivery vehicles, sprinter vans, and package cars purchased after Jan. 1, 2024. All cars get two fans and air induction vents in the cargo compartments.

As part of the agreement, all UPS Teamsters will receive Martin Luther King Jr. Day as a full holiday for the first time and no more forced overtime on Teamster drivers’ days off. Drivers will keep one of two workweek schedules and cannot be forced into overtime on scheduled off days.

“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,” UPS CEO Carol Tomé said in a statement. “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 five-year agreement covers U.S. Teamsters-represented employees in small-package roles and is subject to voting and ratification by union members.

On July 31, representatives of the 176 UPS Teamsters locals in the U.S. and Puerto Rico will meet to review and recommend the tentative agreement. Locals will conduct member meetings and Teamsters will have several weeks to vote on the offer electronically. Member voting begins Aug. 3 and concludes Aug. 22. LL

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