It’s over. While UPS management and the Teamsters' top brass agreed to the new terms, the union’s rank-and-file still had to sign off, and they did. Besides air-conditioned delivery vehicles, the average full-time UPS driver can expect to earn around $170,000/year in salary and benefits by the end of this latest five-year contract. The shipping giant was on the verge of a massive labor strike this summer if a new deal wasn’t agreed upon by July 31.
Things looked grim toward that deadline, with UPS training non-union workers to carry out deliveries. Out of the 530,000 or so employees, around 340,000 are Teamsters drivers. If this strike occurred, the impact could have been catastrophic. Luckily, we all dodged a bullet here (via NBC News):
UPS workers ratified the Teamsters-negotiated labor deal unveiled nearly a month ago, allowing the next five-year contract covering 340,000 employees to take effect at the package carrier.
“This contract will improve the lives of hundreds of thousands of workers,” Teamsters President Sean O’Brien said in a statement Tuesday. “Teamsters have set a new standard and raised the bar for pay, benefits, and working conditions in the package delivery industry. This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.”
The decision, with more than 86% of UPS union members who voted casting ballots in favor of the deal, officially removes the threat of a strike at UPS. Logistics experts had warned that a protracted work stoppage at the carrier would have caused widespread disruptions across the U.S., halting many more deliveries than top rivals could have absorbed.
UPS confirmed the vote results, saying in a statement, “Our Teamsters-represented employees have voted to overwhelmingly ratify a new five-year National Master Agreement.”
The contract approval, following several weeks of voting, marks a labor movement victory that could add momentum to organizers in other major negotiations.
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The new UPS agreement eliminates a widely criticized two-tiered wage system and institutes raises across the package carrier’s workforce.
Current full- and part-time union workers are guaranteed a $2.75 hourly pay increase this year, the Teamsters said, amounting to a $7.50 hourly increase through the duration of the contract. Pay for existing and starting part-time workers will be raised to at least $21 per hour immediately, advancing to $23 per hour.
Current part-timers also won longevity wage increases of up to $1.50 per hour. Wage increases for full-time drivers would bring their average top rate to $49 per hour, the union said.
BREAKING: The union representing 340,000 UPS workers says its members voted to approve a new contract, finalizing contentious labor negotiations. https://t.co/mtnXjPrMdv
— The Associated Press (@AP) August 22, 2023
BREAKING: UPS workers ratified a new five-year contract that includes higher wages, eliminating the risk of a strike. https://t.co/OsFNeO77TI
— CBS News (@CBSNews) August 22, 2023
Next up: United Auto Workers union, whose contract with the car makers expires on September 14.