UPS workers have approved a major five-year labor deal, securing big pay raises and work rule improvements.
Over 86.3 percent voted in favor of the agreement, marking the highest contract vote percentage in Teamsters’ history at UPS.
Teamsters General President Sean O’Brien said: “Teamsters have set a new standard and raised the bar for pay, benefits and working conditions in the package delivery industry.
Read More: UPS Drivers Set To Earn Average Of $170,000 In Pay And Benefits
“This is the template for how workers should be paid and protected nationwide, and nonunion companies like Amazon better pay attention.”
Negotiations between UPS and the Teamsters union, representing approximately 340,000 employees at the delivery giant, averted a potential strike.
It could have had widespread economic ramifications, given that UPS transports about $3.8 billion worth of goods daily.
According to the US Chamber of Commerce, it equals around fi percent of the US gross domestic product.
Read More: Teamsters And UPS Reach Contract Deal To Avert Strike
The previous labor contract was due to expire on July 31.
Strike avoided
Both parties faced a critical deadline to reach an agreement to prevent a work stoppage.
According to the union, voting on the new contract began on August 2.
It’s the largest collective bargaining agreement in the private sector.
Part-time UPS workers will see their minimum hourly wage increase from $15.50 to $21, a point of contention during labor negotiations.
Full-time employees will earn an average of $49 per hour.
Read More: American Airlines Pilots Secure 46 Percent Raise In New Labor Deal
Current workers will receive an additional $2.75 per hour in the current year.
They’ll get a cumulative $7.50 per hour raise over the five-year contract period.
CEO Carol Tomé said UPS drivers would make an average annual pay of $170,000, including benefits, at the end of the five-year contract.
This development reflects a broader trend among labor organizations in the US.
The union is the latest labor organization to push for better pay, work schedules, and other benefits in response to Covid-19 and high inflation.
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Recently, American Airlines pilots ratified a four-year deal with substantial compensation increases.
It follows United Airlines’ agreement with its pilots’ union.
Delta Air Lines pilots also secured over 30 percent salary hikes earlier this year.
However, Southwest Airlines has not agreed with its pilots’ union, raising the possibility of a strike.
However, such events are exceedingly rare in the airline industry under US laws.
FedEx pilots, in contrast, rejected a tentative agreement for a new labor contract earlier this summer.
