The following week could have initiated a possible work stoppage that narrowly averts and encompasses salary increases for both full- and part-time employees. UPS and the Teamsters union, which represents approximately 340,000 workers at the shipping company, announced on Tuesday that they have reached a preliminary labor agreement.
The most recent string of labor deals in aerospace manufacturing won higher pay and pushed workers to become pilots.
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According to Sean O’Brien, the General President of the Teamsters, the agreement is valued at $30 billion.
He stated, “we demanded the best contract for us and UPS in the history. The union went into this fight committed to winning for our members.”
The union stated that part-time employees will receive a salary increase of at least $21 per hour if the workers approve the new contract. The main issue during negotiations was the payment for part-time work. Full-time workers will earn an average of $49 per hour. Current employees will receive an additional $7.50 per hour over the course of the five-year contract, and an extra $2.75 per hour this year.
The deal would also end mandatory overtime on drivers’ days off, according to an outline of the contract provided by the Teamsters.
Together, we have reached a win-win-win agreement on the important issues that are crucial to our customers and UPS. It is vital for us to maintain a strong business and serve our customers while remaining competitive. We also recognize the need to provide flexibility to our employees, both part-time and full-time, by continuing to offer industry-leading benefits and pay. This agreement ensures that UPS rewards its employees while retaining the necessary flexibility.
A driver from United Parcel Service (UPS) pushes a cart of packages towards a delivery truck on a street in New York.
Victor J. Blue | Bloomberg | Getty Images.
The retail industries, like giant delivery packages, could face a ripple effect if there is a labor stoppage. UPS employees, represented by Teamsters, voted to authorize a strike after the two sides failed to reach an agreement by July 31. The voting took place from August 3 to August 22. However, the workers still need to ratify the tentative deal.
The National Retail Federation celebrated the preliminary agreement.
We are grateful for the agreement that the CEO Shay Matthew said in the trade group, which came to the marketplace without disrupting the Teamsters. UPS is a major partner in the retail industry, and this agreement will bring long-term stability and assurance to millions of employees and businesses who rely on their supply chains.
Despite previous negotiations resulting in no new contracts, the tentative labor deal was rejected by 57% of pilots at UPS rival FedEx on Monday, leading to the agreement being voted against.
– Melissa Repko from CNBC contributed to this report.