UPS AND TEAMSTERS REACH AGREEMENT
UPS and the International Brotherhood of Teamsters (Teamsters) reached a tentative agreement for a five-year contract on Tuesday averting a strike. Endorsed by the UPS Teamsters National Negotiating Committee, the tentative agreement adds new full-time jobs, increases hourly pay rates for both full and part-time union members, and provides additional safety measures for workers.
The collective bargaining agreement is expected to be approved by the Teams as union leadership is recommending members vote to approve the agreement. Both UPS and Teamster leadership applauded the efforts of the collective bargaining process to reach an accord a week before the negotiating deadline to avert a strike.
“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.”
Carol Tomé
UPS Chief Executive Officer
AGREEMENT TERMS
The five-year agreement covers US Teamsters-represented employees in small-package roles. Lauded by Teamster leadership as an historic contract as “the single largest private-sector collective bargaining agreement in North America.”
“Teamster labor moves America…UPS has put $30 billion in new money on the table as a direct result of these negotiations. We’ve changed the game, battling it out day and night to make sure our members won an agreement that pays strong wages, rewards their labor, and doesn’t require a single concession. This contract sets a new standard in the labor movement and raises the bar for all workers.”
Sean M. O’Brien
Teamsters General President
UPS Teamsters shared the following contract highlights in a recent statement.
- Historic wage increases. Existing full- and part-time UPS Teamsters will get $2.75 more per hour in 2023. Over the length of the contract, wage increases will total $7.50 per hour.
- Existing part-timers will be raised up to no less than $21 per hour immediately, and part-time seniority workers earning more under a market rate adjustment would still receive all new general wage increases.
- Current UPS Teamsters working part-time would receive longevity wage increases of up to $1.50 per hour on top of new hourly raises, compounding their earnings.
- New part-time hires at UPS would start at $21 per hour and advance to $23 per hour.
- Safety and health protections, including vehicle air conditioning and cargo ventilation. UPS will equip in-cab A/C in all larger delivery vehicles, sprinter vans, and package cars purchased after Jan. 1, 2024. All cars get two fans and air induction vents in the cargo compartments.
- No more forced overtime on Teamster drivers’ days off. Drivers would keep one of two workweek schedules and could not be forced into overtime on scheduled off-days.
- The creation of 7,500 new full-time Teamster jobs at UPS and the fulfillment of 22,500 open positions, establishing more opportunities through the life of the agreement for part-timers to transition to full-time work.
The tentative agreement must be voted on and ratified by over 330,000 full-time and part-time Teamsters employed by UPS.
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