UPS and Union Reach Contract Agreement, Averting Nationwide Strike; Full Time Drivers To Make $49/Hr

Over a week ago, UPS and its 340,000-strong union negotiated a contract agreement, avoiding a strike that might have disrupted countrywide operations for both businesses and families.

The Teamsters described the proposed deal as "historic" and "overwhelmingly profitable." Higher pay and air conditioning in delivery vehicles are a couple of the perks.


In a prepared statement, Carol Tomé, CEO of UPS, stated, "Together we established a win-win-win agreement on the areas that are important to Teamsters leadership, our employees, as well as UPS and our customers. "This agreement maintains the flexibility we need to be competitive, service our customers, and keep our business healthy while continuing to reward UPS's full- and part-time employees with industry-leading compensation and benefits."

Part-time drivers will get $21 per hour under the tentative deal, while full-time drivers would make $49 per hour. After January 1, 2024, UPS will also install air conditioning to all small delivery vans purchased in the United States.

The five-year contract, according to the business, is subject to vote and approval by union members and covers small-package responsibilities held by U.S. Teamsters employees.

Teamsters members fought with UPS over wages as the delivery company's earnings climbed in recent years, in part because they felt pressured into signing a contract five years ago by union leadership. The election of Sean O'Brien, a prominent opponent of James Hoffa, the union president who approved that contract and the son of the infamous Teamsters firebrand, last year upended the status quo in the union.

Since the previous contract was signed, UPS has seen a more than 140% increase in profits as the outbreak of a deadly epidemic significantly changed how families receive the things they need.

The Atlanta company's unionized employees said that they were supporting expansion and that they were adamant about fixing what they saw to be a flawed contract.


The voting period for members runs from August 3 to August 22. For the labor agreement to become effective, more than 3,000 workers must ratify it.

UPS is the largest private-sector labor agreement in North America, and the last labor dispute, which occurred 25 years ago, resulted in a 15-day strike by 185,000 workers that destroyed the business.


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