The Teamsters union announced today that leadership has reached a tentative agreement with UPS, averting a strike that was set to begin on 1 August involving 340,000 workers.
The national bargaining committee unanimously endorsed the five-year tentative agreement.
Highlights of the agreement include wage increases of $2.75 per hour for full-time and part-time workers this year and $7.50 more per hour over the length of the contract, and part-timers will see wage increases immediately of at least $21 an hour. The wage gains are double the gains from the previous five-year contract that was in effect from 2018, and a 48% increase for part-timers over the life of the contract. Full-timers will see their average top rate increase to $49 per hour.
The agreement also ends a two-tiered classification for drivers, provides part-timers with longevity raises, adds Martin Luther King Day as a paid holiday off, and ends forced overtime on off days.
“Rank-and-file UPS Teamsters sacrificed everything to get this country through a pandemic and enabled UPS to reap record-setting profits. 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,” said the Teamsters general president, Sean M O’Brien in a press release announcing the agreement.
“UPS has put $30bn 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.”
Representatives of the UPS Teamsters locals will meet on 31 July to review and recommend the tentative agreement, which will be put to a vote by membership starting 3 August to 22 August.
“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,” said Carol Tomé, the CEO of UPS. “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.”