Voting on the tentative labor contract between UPS and its 340,000 unionized workers began Thursday. Teamsters members have until Aug. 22 to weigh in on the contract.
What You Need To Know
- Voting on the tentative labor contract between UPS and its 340,000 unionized workers began Thursday
- Teamsters members, including those with Louisville's Local 89, have until Aug. 22 to weigh in on the $30 billion contract
- The contract, if ratified by union members, would provide raises for full- and part-time workers, air conditioning for more delivery trucks and more
- Teamsters General President Sean M. O’Brien said in a statement that UPS put $30 billion more on the table due to the negotiations, saying the deal “sets a new standard in the labor movement”
UPS and the nationwide Teamsters union reached an agreement on the labor contract last week, which averted a looming strike that would've disrupted package deliveries for millions of households and businesses in the U.S.
The Teamsters hailed the agreement as “historic." If union members vote in favor on the $30 billion contract, employees can expect:
- Raises of $2.75 per hour in 2023, totaling $7.50 in five years, for full- and part-time workers
- No forced overtime on days off
- Two-tier wages for drivers
- More delivery trucks equiped with air conditioning
- The addition of Martin Luther King Jr. Day as a paid holiday
Teamsters Local 89 in Louisville, Ky., one of the largest in the country, was the only affiliate to vote against the tentative contract. Rank-and-file UPS Teamsters can vote on the contract's ratification until Aug. 22, 2023.
Teamsters General President Sean M. O’Brien said in a statement that UPS put $30 billion more on the table due to the negotiations, saying the deal “sets a new standard in the labor movement.”
Under the agreement, the company will create 7,500 full-time jobs and fill 22,500 open positions, allowing more part-timers to transition to full-time.
“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,” Carol Tomé, UPS CEO, said in a written statement.
The 24 million packages UPS ships daily amount to about a quarter of all U.S. parcel volume, according to the global shipping and logistics firm Pitney Bowes. According to UPS, that’s equivalent to about 6% of the nation’s gross domestic product.
During the last breakdown in labor talks a quarter of a century ago, 185,000 UPS workers walked out for 15 days, crippling the company. A walkout this time would have had much further-reaching implications, with millions of Americans now accustomed to online shopping and speedy delivery.
The Associated Press contributed to this report.