UPS and the Teamsters union have reached a preliminary labor deal, effectively avoiding a potential strike that could have impacted the package carrier’s operations.
The agreement covers approximately 340,000 UPS workers and includes raises for full-time and part-time employees.
The deal, valued at $30 billion according to Teamsters General President Sean O’Brien, addresses key points of contention during negotiations.
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He said: “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.”
Part-time workers will receive a raise to at least $21 per hour, pending approval of the new contract, while full-time workers will average $49 per hour.
Existing workers will see an increase of $2.75 per hour this year and an additional $7.50 per hour over the five-year contract period.
Additionally, the agreement will end mandatory overtime on drivers’ days off, providing further relief for workers.
Read More: UPS braces for impending strike as Teamsters negotiations collapse
UPS CEO Carol Tomé said: “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.
“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.”
Despite the preliminary agreement, the deal still requires ratification by the workers.
Before the agreement, Teamsters-represented UPS employees had authorized a strike if an agreement was not reached by the end of July.
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Had a strike occurred, it could have had far-reaching effects for industries, such as retail, heavily reliant on UPS for package delivery.
The National Retail Federation welcomed the tentative agreement.
Matthew Shay, CEO of the trade group, said: “UPS is a major partner of the retail industry, and we are grateful it came to an agreement with the Teamsters without disruption to the marketplace.”
Despite preliminary deals, recent labor talks have not ended in new contracts.
On Monday, July 24, pilots at UPS rival FedEx rejected a tentative labor deal, with 57 percent voting against the agreement.
