UPS bosses have said drivers would get an average salary of $170,000, including pay and benefits like healthcare and pensions.
Last month, the delivery giant reached a five-year contract deal with the Teamsters Union, preventing a proposed strike action.
Covering around 340,000 employees, the tentative agreement is currently being put to a ratification vote, running until August 22.
Read More: Teamsters And UPS Reach Contract Deal To Avert Strike
UPS CEO Carol Tomé said: “We expect our new labor contract to be ratified in 2 weeks.”
The company slashed its annual revenue and margin forecasts “to reflect the volume impact from labor negotiations and the costs associated with the tentative agreement.”
The agreement would raise part-time workers’ minimum hourly wages to $21, whose pay was a sticking point in negotiations.
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The UPS drivers’ pay would average $49 an hour, and the deal would stop mandatory overtime on drivers’ days off.
This mirrors a growing trend of substantial wage hikes attained through labor negotiations.
Various industries observe employees advocating for and achieving improved compensation.
